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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 | Link to Comment slaughterer
slaughterer's picture

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

Fri, 07/05/2013 - 12:22 | Link to Comment Stuart
Stuart's picture

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

Fri, 07/05/2013 - 12:34 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment StychoKiller
StychoKiller's picture

Me and the Killbots wanna kill all Humans!

Fri, 07/05/2013 - 13:36 | Link to Comment 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 | Link to Comment MrSteve
MrSteve's picture

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

Fri, 07/05/2013 - 12:20 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment q99x2
q99x2's picture

it fi

Fri, 07/05/2013 - 12:37 | Link to Comment 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 | Link to Comment buzzsaw99
buzzsaw99's picture

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

Fri, 07/05/2013 - 12:43 | Link to Comment 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 | Link to Comment economessed
economessed's picture

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

Fri, 07/05/2013 - 12:21 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment There is No Spoon
There is No Spoon's picture

/CAPSLOCK

Fri, 07/05/2013 - 12:45 | Link to Comment McMolotov
McMolotov's picture

SOMETIMES ALL-FUCKING-CAPS IS NECESSARY.

Fri, 07/05/2013 - 13:23 | Link to Comment greatbeard
greatbeard's picture

>> SOMETIMES ALL-FUCKING-CAPS IS NECESSARY.

You must be female.

Fri, 07/05/2013 - 13:16 | Link to Comment 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 | Link to Comment 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 | Link to Comment slaughterer
slaughterer's picture

Silver bitchez! 

Ooops.

Nevermind.  

Fri, 07/05/2013 - 12:23 | Link to Comment Racer
Racer's picture

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

Fri, 07/05/2013 - 12:31 | Link to Comment 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 | Link to Comment 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 | Link to Comment buzzsaw99
buzzsaw99's picture

.

Fri, 07/05/2013 - 12:26 | Link to Comment 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 | Link to Comment 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 | Link to Comment buzzsaw99
buzzsaw99's picture

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

Fri, 07/05/2013 - 12:24 | Link to Comment 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 | Link to Comment Al Huxley
Al Huxley's picture

Gold?  Treasuries?  Bernanke's soul?

Fri, 07/05/2013 - 12:35 | Link to Comment gjp
gjp's picture

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

Fri, 07/05/2013 - 13:01 | Link to Comment therover
therover's picture

Apple

Fri, 07/05/2013 - 12:24 | Link to Comment 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 | Link to Comment slotmouth
slotmouth's picture

The move was accompanied by no public news.

Fri, 07/05/2013 - 12:28 | Link to Comment 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 | Link to Comment 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.

Fri, 07/05/2013 - 12:33 | Link to Comment ekm
ekm's picture

tripple lehman coming

Fri, 07/05/2013 - 12:40 | Link to Comment reload
reload's picture

An aquaintance of mine here in the UK sells very high end vintage cars. Serious money, into the millions sometimes. He trades them and also offers them to the market for xommision on a sale or return basis for their owners.

Aparently business has never been better, prices have soared. The last month has been his best ever. I was a bit suprised, he said "mate, people are desperate to get assets outside the financial system"

How that pans out in a deflationary collapse I have no idea - but they do not just vanish into thin air at least!

Fri, 07/05/2013 - 12:51 | Link to Comment ekm
ekm's picture

Correct.

People confuse Debt with Leverage.

 

Debt = somebody loans you capital

Leverage = Money is made out of nothing, but there's little capital.

When it collapses, it eats up the capital.

 

Money literally vanishes into nothing. Your capital is transfered to the broker who offered you leverage.

 

The Fed offered leverage to Primary Dealers. but they have not capital.

Fri, 07/05/2013 - 12:50 | Link to Comment McMolotov
McMolotov's picture

Is that similar to the Triple Lindy...

http://www.youtube.com/watch?v=rDMMYT3vkTk

...but where the diver does a belly-flop from 10 meters?

Fri, 07/05/2013 - 12:52 | Link to Comment Everybodys All ...
Everybodys All American's picture

Name your candidates ... I know I have mine ...

Fri, 07/05/2013 - 12:52 | Link to Comment ekm
ekm's picture

Pure speculation, based on lack of political connections:

 

Morgan stanley

Blackrock

Fri, 07/05/2013 - 13:36 | Link to Comment Everybodys All ...
Everybodys All American's picture

You seem confident that this is going to be a political decision. I find that hard to believe but I'll put it in my memory bank.

Fri, 07/05/2013 - 13:47 | Link to Comment walküre
walküre's picture

MS and DB

Fri, 07/05/2013 - 12:32 | Link to Comment Everyman
Everyman's picture

WHO IN THE FUCK WANTS TO PLAY THIS FUCKING RIGGED GAME ANYMORE????????????????????????????

Fri, 07/05/2013 - 12:34 | Link to Comment kito
kito's picture

the ones who make the money from it????? i guess??........

Fri, 07/05/2013 - 12:35 | Link to Comment Cdad
Cdad's picture

Who?  About 10,000 guys with computers on the floor of the NYSE.  Everybody else has left this market for dead...which is why, now and always, the real reason Bernanke keeps forcing cash into these big dead banks.  

Fri, 07/05/2013 - 12:46 | Link to Comment reload
reload's picture

That has a ring to it

BIG DEAD BANK

coming to a high street near you. Deposits optional / withdrawals impossible

Fri, 07/05/2013 - 12:33 | Link to Comment starman
starman's picture

"fuck me running"

 

Fri, 07/05/2013 - 12:49 | Link to Comment jmcadg
jmcadg's picture

This visualisation is making me laugh. Thanks.

Mind you all of today has been hilarious.

Fri, 07/05/2013 - 12:38 | Link to Comment gimli
gimli's picture

Obviously there are a shitload of bartenders and waiters supporting this rally.

Fri, 07/05/2013 - 12:39 | Link to Comment gimli
gimli's picture

Primarily bartenders.

Fri, 07/05/2013 - 12:41 | Link to Comment HowardBeale
HowardBeale's picture

So whom is hurt most by these massive moves in the TNX? Anyone know?

Fri, 07/05/2013 - 12:41 | Link to Comment cdude
cdude's picture

Hellooooo......Nanex

Fri, 07/05/2013 - 12:42 | Link to Comment sudzee
sudzee's picture

No news is good news.

Fri, 07/05/2013 - 12:44 | Link to Comment jubber
jubber's picture

dead on 16.55 GMT the top 10 Dow heavy weights magically spike up...absolute bollox as usual

Fri, 07/05/2013 - 12:50 | Link to Comment Archetype
Archetype's picture

Could it be more convinient, ramp it up just before lunch hour in five minutes when volumes are light? Its all about creating gaps between Asia, Europe and US seassions.

Fri, 07/05/2013 - 12:55 | Link to Comment Everybodys All ...
Everybodys All American's picture

It's all theater at this point. No fundamentals. You can't have the ten yr spike like it did today and have equities rally at the same time. One of them is very wrong and I suspect it's equities in a big way.

Fri, 07/05/2013 - 12:59 | Link to Comment Archetype
Archetype's picture

Yupp, for sure. Equities are beyond moron as we speak.

Fri, 07/05/2013 - 12:52 | Link to Comment Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Rumor that market participants are only going to be allowed to see EOD quotes ...

Now that would be bullish.

Fri, 07/05/2013 - 13:19 | Link to Comment Lmo Mutton
Lmo Mutton's picture

Long live big brother.

Fri, 07/05/2013 - 13:35 | Link to Comment razorthin
razorthin's picture

What do US stawks know that absolutely nothing else knows?

Fri, 07/05/2013 - 13:56 | Link to Comment Cdad
Cdad's picture

Anwer:  the exact, preplanned day when the criminal syndicate known as Wall Street will pull the plug, and gap them down 20% prior to the opening bell.

Fri, 07/05/2013 - 13:59 | Link to Comment HowardBeale
HowardBeale's picture

They know what the inside of the golden cocoon looks like. Unfortunately for them, the coccon has been blown onto the freeway of reality; their first glimpse will be their last.

Fri, 07/05/2013 - 14:10 | Link to Comment kill switch
kill switch's picture

Fuck stocks!!! who cares about algo city, nothing important to see..VIX Represents shit...This is a dream come true KEEP STACKING!!

Fri, 07/05/2013 - 14:09 | Link to Comment HowardBeale
HowardBeale's picture

My theft-o-meter says we've seen a solid week or more of DISTRIBUTION; in my book, and given today's choice to ramp--not to buy, I assume--I would say we are on the precipice of a significant down move.

Fri, 07/05/2013 - 14:09 | Link to Comment TrustWho
TrustWho's picture

Did 3:30PM Ramp Capital leave for the Hamptons early?

 

What a call by ZH almost as it was happenning. The obvious manipulation shows such a disdain for authority that one must believe the authorities are doing it!

Fri, 07/05/2013 - 15:55 | Link to Comment EclecticParrot
EclecticParrot's picture

Yep, now that we're near the close, it seems the gameplan went something like this:  a) wait until the 'sell the news' bunch trading off the NFP number were done, around mid-day'  b) ramp back to near 50DMA, as they knew there were no net big new shorts waiting with sell orders in the queue below that level.  Given institutions own most of the supply, why not take it as high as inhumanly possible before the weekend, padding the books, scaring away weaker shorts, like a pool shark clearing the table of extraneous balls -- and this time the balls are ours.

Fri, 07/05/2013 - 14:38 | Link to Comment smcapmachine
smcapmachine's picture

enough of the "stock market is rigged" nonsense.   It's reality.   Adapt or enjoying making no money in one of the largest bull markets in decades.

Fri, 07/05/2013 - 16:03 | Link to Comment TrustWho
TrustWho's picture

In god you trust. Daddy Bernanke is your god. Can you get out first? The price we will all play for this farce will make the Egypt coups seem like stability. 

Fri, 07/05/2013 - 14:42 | Link to Comment Caracalla
Caracalla's picture

What's the deal with the 10 year Treasuries?  2.73% this afternoon (yields) up over 8% today

Fri, 07/05/2013 - 15:16 | Link to Comment Trampy
Trampy's picture

selling

Fri, 07/05/2013 - 15:33 | Link to Comment sphindog
sphindog's picture

So...Goldman takes it up past the 50...suckers some idiots in to buy...takes it below the 50 to close, ready to tank it next week. What else is new?

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