Stocks Spike In Stop Scare As VIX Slammed

Tyler Durden's picture




 

Presented with little comment aside to note that the 6 point vertical ramp in the S&P 500 (which just happened to stall perfectly at VWAP) was accompanied by no news, no other-asset-class support, and a smack-down in front-end VIX... S&P futures are back above the 50DMA once again intraday (as Discretionary names outperform and builders are battered). Did 3:30PM Ramp Capital leave for the Hamptons early?

 

 

 

and this spike in the indices was not seen at all in market breadth...

 

but the builders just keep getting sold every day...

 

Charts: Bloomberg

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Fri, 07/05/2013 - 12:17 | 3723874 slaughterer
slaughterer's picture

Same old tricks as always-  Taper rumor changes nothing until taper reality arrives.  

Fri, 07/05/2013 - 12:22 | 3723896 Stuart
Stuart's picture

All markets have become full bore casinos.   Fundamentals be damned, market rigging rules!

Fri, 07/05/2013 - 12:34 | 3723945 slaughterer
slaughterer's picture

The 10 and 30 Year collapse today is sure going to mess up Bill Gross' and Jeff Gundlach's weekend.  Not to mention alot of big pension funds and .... dare i say ... China.  

Fri, 07/05/2013 - 12:54 | 3724013 101 years and c...
101 years and counting's picture

imagine ben sweating in a corner somewhere as his hedge fund collapses.  i wonder how many naked Vix calls the NYFed sold to get this little bounce.  and, when this bounce fails and the vix soars, how much money they will lose.  the death of the CB hedge fund.  the ultimate in black swans.

Fri, 07/05/2013 - 13:11 | 3724035 reload
reload's picture

You are assuming they mark to market! In your example they just keep the premium they sold the calls for - no sweat.

The Puts that may have been sold to crush vol on the other hand may blow up.

 

Edit: sorry 101 you are right- I did not take the Vixx part on board.

Fri, 07/05/2013 - 12:56 | 3724016 disabledvet
disabledvet's picture

in Wall Street's dreams. they only know how to blow things up down there. real and meaningful wealth hasn't been created by the Street in 60 years. they do have interesting advertising campaigns these days though. I'd like to be buying but for some strange reason feel...deterred.

Fri, 07/05/2013 - 20:33 | 3725384 StychoKiller
StychoKiller's picture

Me and the Killbots wanna kill all Humans!

Fri, 07/05/2013 - 13:36 | 3724131 Aknownymouse
Aknownymouse's picture

Time to start leaking that china and ECB and Japan will double up on theUST purchases over the weekend and all problems will be solved.

Fri, 07/05/2013 - 16:37 | 3724727 MrSteve
MrSteve's picture

But now they have another chance to buy the dip and "average down"!

Fri, 07/05/2013 - 12:20 | 3723884 ekm
ekm's picture

Collateral call reaction.

 

Reminder of Seth Klarman's gem:

"If you buy a security to sell it to a greater fool, if there are no greater fools left, then you are the greater fool."

 

Now imagine that, with 97% leverage for owning stocks by primary dealers

Fri, 07/05/2013 - 12:38 | 3723963 Divided States ...
Divided States of America's picture

If thats the case, is some fund in trouble and covering their shorts in a panic right now? This looks like some sort of unwinding/liquidation/covering by someone which caused that spike an hour ago. Can we have something like in 2007 with the Bear Stearns quant fund unwinding except this is occuring on the upside? I am sure Sprott is getting hosed again today...but they dont just do metals, they also have expanded their offerings to include Global Macro and Fixed Income funds....The fixed income space is getting destroyed too....is this the final straw like EKM is saying where they are just trying to get ANYONE to get into equities but taking down everything else. If thats the case, we can have more upside then potentially the system implodes because all players in the financial markets are even more tightly integrated now then back in 2007.

Fri, 07/05/2013 - 12:42 | 3723977 ekm
ekm's picture

hyperleveraged long parties are spending their last dollars to keep DOW up, probably even pulling and MF Global, using customer funds.

 

Dow cannot drop. Dow can only collapse.

Fri, 07/05/2013 - 13:01 | 3724031 disabledvet
disabledvet's picture

we'll see. the hyper ventilating of the media over a bond market collapse is rather odd. "here comes the we're gonna buy Time Warner" insanity too. I'd laugh if Time Warner followed Citi to Connecticut actually. New York City so 20th Century? two feet on the accelerator right now to make it so that's fer sure.

Fri, 07/05/2013 - 12:42 | 3723978 Everybodys All ...
Everybodys All American's picture

There are going to be some major losses on the ten yr. That is where the leverage is ridiculous.

Fri, 07/05/2013 - 12:20 | 3723888 thismarketisrigged
thismarketisrigged's picture

I JUST WANT TO KILL THESE FUCKING ASSHOLES MORE AND MORE EVERY SINGLE DAY.

 

DOW GOES FROM UP 15 PTS TO UP 90 IN 5 MINUTES.

S&P GOES FROM UP 5 PTS TO UP 11 PTS IN 5 MINUTES

 

ON NOTHING WHAT SO FUCKING EVER. THIS SHIT MAKES ME SICK TO MY STOMACH.

Fri, 07/05/2013 - 12:25 | 3723909 buzzsaw99
buzzsaw99's picture

not real, it's merely a simulated market. stop watching if it makes you angry.

Fri, 07/05/2013 - 12:33 | 3723942 q99x2
q99x2's picture

it fi

Fri, 07/05/2013 - 12:37 | 3723959 thismarketisrigged
thismarketisrigged's picture

i cant stop watching, because if i stop watching, im going to miss the collapse i have been waiting for.

 

its tough now but i know in the end it will work out. still not easy though seeing this bullshit day in and day out.

Fri, 07/05/2013 - 12:44 | 3723984 buzzsaw99
buzzsaw99's picture

long term interest rates rising should comfort you some. tick tock bitchez

Fri, 07/05/2013 - 12:43 | 3723982 McMolotov
McMolotov's picture

They can make it go up, down, sideways, whatever... until the day they can't.

And on that day, there will be much rejoicing.

Fri, 07/05/2013 - 12:44 | 3723983 economessed
economessed's picture

It's not a market.  It's a crime scene.

Fri, 07/05/2013 - 12:21 | 3723893 Cdad
Cdad's picture

It's the Nanosecond Halftime report effect.  Long side traders, knowing that the nanosecond money crew on the BlowHorn [CNBC] will be swallowing great big buckets of BS, lift bids and sell to the short bus quant traders...all of this also known as "fundamentals."

Furthermore, we are now starting to price in 300 k waiters, bartenders, and temp workers in upcoming unemployment reports...also known as fascism.  

Isn't it all grand, Ben Bernanke....this wasteland you have made for us?  

 

Fri, 07/05/2013 - 12:46 | 3723991 Everybodys All ...
Everybodys All American's picture

There is going to be a lot of tears shed when this is all said and done. Totally in the gutter markets. No fundamentals and no jail for anyone never plays out well long term. Btw Bernanke better get the hell out of this country if he knows what's good for him.

Fri, 07/05/2013 - 12:21 | 3723894 thismarketisrigged
thismarketisrigged's picture

ALSO, ASIDE FROM ZEROHEDGE WHICH SPEAKS THE TRUTH, ALL THESE ASSHOLES ARE BRAGGING HOW GOOD THE REPORT WAS TODAY.

 

ON CNBC A FEW MINUTES AGO, ONE OF THE JACKASSES ON FAST MONEY HALFTIME REPORT SAID HOW THE JOBS REPORT WAS VERY STRONG AND ITS A GOOD SIGN FOR THE ECONOMY.

 

MAYBE THAT JACKASS SHOULD READ ZEROHEDGE TO SEE THE REAL NUMBER EXPOSED.

Fri, 07/05/2013 - 12:29 | 3723920 Al Huxley
Al Huxley's picture

You don't have to read the jobs report to know how good the economy is.  You can see it in the way bonds are selling off again.  More puzzlement for Bernanke, but he must be gratified to see how much of a positive influence his words are continuing to have.

 

Meanwhile, I think the equity market reaction has to be attributed to 'greater fool' traders using a thin trading day and bogus 'positive NFP' in hopes of bringing in a last bunch of greater fools on whom they can offload, before a bigger audience in the general public starts to notice the gaping wound in the so-called 'Treasury market'

Fri, 07/05/2013 - 12:32 | 3723934 SheepDog-One
SheepDog-One's picture

Oh I have no doubt they're just in last gasp efforts to draw in any suckers to scalp them.

Fri, 07/05/2013 - 12:32 | 3723936 Obchelli
Obchelli's picture

And do not forget OIL up 12% in a month - how much buying power is  down because of this?

Fri, 07/05/2013 - 12:43 | 3723981 MrSteve
MrSteve's picture

What a silly question! With oil and energy generally not included in the BLS CPI or COLA formulae, the price of oil has no effect on purchasing power or inflation. Really, you can look it up so it must true.

Fri, 07/05/2013 - 12:30 | 3723925 There is No Spoon
There is No Spoon's picture

/CAPSLOCK

Fri, 07/05/2013 - 12:45 | 3723990 McMolotov
McMolotov's picture

SOMETIMES ALL-FUCKING-CAPS IS NECESSARY.

Fri, 07/05/2013 - 13:23 | 3724087 greatbeard
greatbeard's picture

>> SOMETIMES ALL-FUCKING-CAPS IS NECESSARY.

You must be female.

Fri, 07/05/2013 - 13:16 | 3723927 Divided States ...
Divided States of America's picture

Honestly the jobs market with more PART TIME waiters and bartenders IS MORE BENEFICIAL to the economy then the FULL TIME JACKASSES working on Wall Street. Those fuckers that goes on CNBS touting everything is fine, well I hope the financial markets implode and all those fuckin parasites employed to play around with other people's money will lose their jobs. Its one step to fixing this fucked up economy. Eliminate the jobs that add no fuckin value to society....

Fri, 07/05/2013 - 12:48 | 3723998 HelluvaEngineer
HelluvaEngineer's picture

Maybe that jackass should get a job a Walmart when the sponsors finally pull the plug on that pathetic infomercial mistakenly called a "network"

Fri, 07/05/2013 - 12:22 | 3723897 slaughterer
slaughterer's picture

Silver bitchez! 

Ooops.

Nevermind.  

Fri, 07/05/2013 - 12:23 | 3723900 Racer
Racer's picture

And of course they keep slamming gold, .... must... not.... let... gold.... go....up

Fri, 07/05/2013 - 12:31 | 3723929 Al Huxley
Al Huxley's picture

If you were in a position to naked-sell something freely, with implicit (and even explicit) official support for your actions, knowing there was no risk you'd ever get called on to deliver, wouldn't you do the same?  It's like a gift from the government to the heroic hedge funds who are so gallantly willing to participate in the defense of the national economy.

Fri, 07/05/2013 - 12:24 | 3723902 ThunderingTurd
ThunderingTurd's picture

Earnings season starts.  Fight the tape.  We have heard how great these multinational companies are because of their exposure to overseas.  Now we will see that with the rising greenback and the slowdown in Asia...the 'multi' aspect of that will be a significant drag.

Fri, 07/05/2013 - 12:25 | 3723903 buzzsaw99
buzzsaw99's picture

.

Fri, 07/05/2013 - 12:26 | 3723914 SheepDog-One
SheepDog-One's picture

Right, no way am I going to let this shit make me angry. I have nothing to do with it, I'm out long ago and they can run the bullshit empty casino up another 50% from here and I don't care a bit.

Just a casual observer of the madhouse.

Fri, 07/05/2013 - 12:28 | 3723917 CaptainSpaulding
CaptainSpaulding's picture

For a moment there, I thought i had a dead pixel on my Macbook pro display

Fri, 07/05/2013 - 12:40 | 3723964 buzzsaw99
buzzsaw99's picture

^^^ meant that comment as a reply to rigged. moved it above.

Fri, 07/05/2013 - 12:24 | 3723905 gjp
gjp's picture

something else besides the builders is getting sold every day ... can you guess what it is?

Fri, 07/05/2013 - 12:32 | 3723937 Al Huxley
Al Huxley's picture

Gold?  Treasuries?  Bernanke's soul?

Fri, 07/05/2013 - 12:35 | 3723953 gjp
gjp's picture

I was thinking gold, but the other answers are also valid

Fri, 07/05/2013 - 13:01 | 3724030 therover
therover's picture

Apple

Fri, 07/05/2013 - 12:24 | 3723907 slaughterer
slaughterer's picture

Selling the 50DMA seems like a good move.  We have been making money on that 5 times in a row now.  

Fri, 07/05/2013 - 12:26 | 3723913 slotmouth
slotmouth's picture

The move was accompanied by no public news.

Fri, 07/05/2013 - 12:28 | 3723918 SheepDog-One
SheepDog-One's picture

The move was accompanied by someone throwing a 'buy' switch as they left the office for the weekend.

Fri, 07/05/2013 - 12:30 | 3723921 reload
reload's picture

Well I am taking a small grain of comfort from the 30yr chart today.

And my garden of course.

Everything else is ridiculous.

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