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WTF Chart Of The Day: VIX Shutdown Edition
Rather than discuss this insanity in the end-of-day note, we though the following charts deserve their own moment in the limelight of algos-gone-wild "momentum ignition" infamy (as we explained here and here).
As Bart Chilton said - the CFTC is offline - so anyone can bang, pardon monkeyhammer the VIX close; after all it's not a stock. There things are supervised by the vigilant, pre-recusal eye of Mary Jo White.
The fun began as usual at 330ET as VIX and EURJPY was employed but clearly with S&P futures stuck at VWAP they needed some help... so with 10 minutes to go in the day, size entered and short-term protection was smashed lower, Dec VIX was sold heavily, and EURJPY (FX carry) bid aggressively... the result - a 9 point almost instantaneous ramp through the entire order stack to close the cash markets at their highs on the day the US government shutdown.
and in case you were wondering how the machines managed to get the Russell 2000 to new highs... here is the quote volume behavior for the Vanguard Russell 2000 Value fund VTWV...
These are your "markets"
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Just another day in the USSA
Efficient markets!
Forward!
Gotta have 'faith'
Another Keynesian triumph!
Gotta have fiat. This shit can only happen under a monetary system that's manipulated by central planners.
3:30 PM
Time to run the stops and rape the shorts. Couldn't they at least vary it by five minutes?
Russell 2000 at 83X trailing earnings...uh-huh that's a good buy
But it's loaded with regional banks, retailers, commercial real estate, insurance companies and...,
I need a drink or three.
You left out the charts of Au / Ag showing the 3% drop today. Left me scrtaching my head.
Remember kids. What goes up must come down. These assholes will rape bulls just as easily as bears.
Don't forget 'credit'
they better start going short cars soon to get the prices down to where people want to buy the physical vehicles
Yes, but then the Fed would have to print someplace to go.
could start a new exchange for setlement / delivery..
how about calling it the "CAREX" ?
Introducing the Ford Federale....
Out of gas? Simply raise your gas-limit ceiling and off you go!
Does anyone else wonder what Drawn ,stabbed,smashed ,runover,and drug behind a Rendering truck,used for a urinal cake Baked banker would Taste like????
Im thinking the rendering truck and urinal cake would get some of the bad taste out of your mouth,,,,But!
Capitalism is dead! Long live the Fed!
It's all Bullshit!!!
The greatest show on earth ...
"Do not attempt to adjust the picture. We are controlling transmission. If we wish to make it louder, we will bring up the volume. If we wish to make it softer, we will tune it to a whisper. We will control the horizontal. We will control the vertical..."
Or better yet.
http://www.youtube.com/watch?v=p7Eyyl1Vs1M
The SP FUTS and Vix Dec FUTS charts appear to resemble Paris Hilton.
You like that EUR/JPY don't you, baby?
They don't want to talk to you, they just want bang bang bang...
That last chart looks like an HFT Algo bot computer version of Jacob's Ladder.
We're caught in the tractor beam, bitchez!
Looks like Chutes & Ladders
Even crazier was the 70 point spike on the IBEX to a new 2y high of 9400 and the FTSEMIB to 18000, that is just a 900 point move since yesterday ! anyone left short in either of these ceased to exist...especially as both underlying have been shut for the last four and a half hours!!!
Utterly disgusting.
Will the circle(jerk)
Be unbroken
Bye and bye Lord bye and bye
...and then came the collapse.
When everybody is afraid to touch the stove that is the time to booby trap the fridge.
Wall Street loves government shutdowns. Hey, there IS a budget somewhere for Bernanke's body guards, right??
Good GOD! These are what we call "markets"? I wished I had never been into investing, EVER! Once upon a time, you could do "trading" and "investing", NOW, not so much. Those graphs, and some of the other WFT graphs illustrate one certainty, this is all bullshit, ans you should have NOTHING in this game at all. The dealer owns the table, the cards, and has parked your car in HIS venue. You control NOTHING and will not be allowed to leave the casino until ALL your money "belongs to us".
R u kidding me. This is great for trading. Investing requires faith - I can't hold on for that - but day trading this is simple.
Greatest job on the planet - work 1/2 hour a day buying /ES at 3:30. Guaranteed insta-wealth!
Just a bunch of crooks
Fuck You Bart Chilton!
>> Fuck You Bart Chilton!
I hate to point out the obvious, bro, but Bart Chilton fucked you. Today he just wiped his dick on your mom's curtains. This will continue until morale improves.
"Exceptionalism" will be the USA showing these track records to its citizens.
The Public Be Suckered, here:
http://patrick.net/forum/?p=1223928
Good link. I had forgotten about that site.
Thanks. Know anyone with a 'pulpit' who will do it?
When the market overwhelms this manipulation, as it eventually will, the reversion will be EPIC, EPIC, EPIC.
Such as you describe figures to have happened in 10/2007 -- see the Real Dow here:
http://www.showrealhist.com/
Do you have a reason WHY/THEN?
What market exactly is that you speak of? Is it sort of like the bond vigilantes that would teach Bernonkio and Drago a lesson and yields would shoot higher?
Yeah, I thought so.
Tomorrow morning is the top. VIX will hold 15 and S&P will try to break 1700 and fail. PLEASE GOD! Winter is coming and it's too cold to sleep outside in a cardboard box.
Oh yeah...you know the exact morning this shit ends.
If I did I wouldn't have to make a plea to God and I would have been long all along and not be faced with living in a cardboard box. So, clearly, no is the answer to your astute question.
Due to cycles Indices will go up - relentless - into yearend.
And Gold and Silver - relentless - down.
This is just the warming up.
These markets are BS. We are already in a period of disinflation. What happens when you practically lay off 2 million people? Assets surge in value, well equity assets, not physical commodities. WTF!
The craziest thing is that the airlines were up so much, because we know all these government employees not travelling will hurt airlines earnings.
I miss the days when earnings mattered.
The opposite of inflation is DEFLATION. People lacking jobs does not create deflation.
I'm not suggesting that we are going to see deflation, but the Fed is struggling to get to their target inflation rate. Decreasing inflation is DISINFLATION. Beyond that, I'm pretty sure that supply and demand still drives market prices. With 2 million people not getting paid starting today that is a lot less people that will be flying, driving, buying, etc. Think about it, do you think with 1 million less people driving to work gas prices will go up?
The gold traders seem to have gotten the memo, but the equity markets appear to exist in bizarro world.
Come with me and we'll attend their jubilee
And see them spend
Their last two bits.....
Crashin' in the VIX
No worry, Bubbles Bernanke and the fed adusted the dials. Back to risk on.
It's QE to infinity or until the US dollar dies.
With China shut for the rest of the wekk I guess they will slam the opening of the far east metals markets ust to take out the mild recovery this afternoon, how dare Silver get back above $21
Eehhh...who gives a fuck at this point.
I have transferred over amounts into my trading account I'm embarrassed to say for the first time in 2 years just in the last 2 weeks solely to buy FAZ on a bi-weekly basis...I know it's reckless, I know about the decay..but I finally feel as if we have reached the ultimate end game scenario in financials.
I don't know what stirred me from my slumber in truly feel that every card has been played by these central planners.. After 5 years of this and now with a market trying to shake off a shutdown and metals at these low levels I think it's time to put my money were my mouth and reason is..
The game is over..between yields where they are, Europe, Student debt bubble, auto sales, walmart, QE and Zirp for life...it's curtains...
And if Ben waits for a 25% market decline or even Yellen at this point I'm going all in silver because we all know QE 110 Billion a month is on the horizon.....think about that...not only 5 years of Zirp, debt increases and purchasing...but an increase and Gold is only at 1250+?
Go big or go home bitches..these guys are off the hinges.
P.S.- All this is without mark to market which has been suspended as we'll for 5+ years...good luck fellas.
+1 John, and considering the miners are going broke fast at these prices, it wont be long (another qtr or two) before the whole sector crashes and burns.
I wonder how the ensuing extreme physical shortages will be reflected in these bullshit markets at that time?
"we all know QE 110 Billion a month is on the horizon.."
Maybe quite a bit more with Yellen.
She's a female Paul Krugman with tits and long hair.
On your side, John. Have WIDE mother fucking stops. I have been in EDZ and TZA for10 months...and have not been taken out. This should give you an idea of what I mean by wide. Remember, these fuckers are fuckers....and you could lose it all.
I agree with your reasoning...but these are not times of reason.
Best of luck to you.
My plan is to try to follow Kyle Bass' approach which (I think) is to just sit tight and then when things break, try to stay calm and make decisions based on what I can see happening rather than doing anything because I think it's "right". IOW, let the elites asset strip until the markets fail and then see where we are at that time when we finally know what broke.
Some cash, some PMs, a home... At some point cash or PMs will buy huge amounts of wealth at a time when everyone is punch-drunk and scared shitless including us.
Youll probably have to break some new "pound me in the ass prison" laws to hold onto your wealth which will mean we will have to become just a bit like the elites we hate to survive. I think one of the more interesting things to watch will be how many well off people in the US give it all away at the worst time because they want so badly to believe in their political leadership.
May I also add....GET THE FUCK OUT OF NORTH AMERICA...if at all possible.
Get the fuck out of Europe.
Get the fuck out of Japan.
A nice little island country where guns do not exist and everybody is rich...or everybody is poor. Both are fine. Let the rest of the world go down the drain...they will be far too busy with their own problems than to fuss with the goings on...down there on Gilligan's island.
Re: if at all possible
Most people are stuck. Family or inertia. ALways been that way.
Poor John, let me help you out a little and I hope you appriciate it. If you graph FAZ vrs FAS, you'll see that there is a 1% fee per month that eats away your investment. A safe way for you to bet ATM on what you think is going to happen is write Jan 2015 PUTS on something like IAG (a gold company thats ridiculously undervalued) that you wouldnt mind owning and by cheap out of the money calls every month. Doing this, I generate around 9K from the puts, than I spend about 1K in calls...sometimes they expire worthless...other times they go at 1000% return.
Easy money..dont play their game, play your game.
Spot on
I mean
bot on
Why fight it. I bought XIV at 3, closed it on the close. I do this most everyday. Set a stop in case the ride is not open that day.
The markets sure much more fun with no regulators. Highly efficient markets with no advantage for the brokers over the Retail. I'm sure mom and pop are totally ready to take out a second mortgage and dump it in equities for a sure fire gain.
That last graph is very artistic. Would look nice framed.
Where the fuck is that confounded WTF cat when you need him?
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Thanks for the reminder Trader Dan.
lf
that goes on my wall next to Fred's pic
thanks
amzn at 320, nflx at 324, hlf at 72, fb at 50, tsla at 193, lnkd at 250, pcln at 1,039, yup there are no bubbles whatsoever and all stocks are priced fairly valued.
what a fucking joke this is.
i really dont see why the debt ceiling debate would effect this fucking casino as long as the fed keeps printing.
Boris...Boris...what sayeth ye on this bullshit?
Maybe Yellen doubles down on QE.
Umm...nice catch MY MAIN MAN!
CRIMINALS are using any and every tool in the bag to buy more time!
by the way, I'm still "shorting" til the last drop
you will loose your shirts and pants as for the rest of the year Indices will rally higher while Gold and Silver will get a lot cheaper.
Asset prices have to surge! The money being printed isn't being loaned out (well, other than to students and to people who can't afford cars) so it's magical! No inflation AND we get rich (there was much rejoicing throughtout the Kingdom)!!!
I don't know why so many (supposedly) smart people around here don't get it?
$2 Trillion has been printed up already and trades every day... and yes, I am disgusted but just why is it that the 'market' will crash? Ohhhhh, I get it -- 'they' crash it.
It looks to me like the financial repression noose has even tightened. Gold has been crushed and they can outsize the VIX market all day long. The question is therefore, when has all the gold been hoarded? The House of Rothschild is certainly converting their fiat into gold. Even Uncle Sam gets fucked this time around.
You can thank all the bleeding hearts who've been had and supported the Star of Rothschild, aka Isreal. Time's just about up for the Petrodollar. I just think that there is a blow off top still out there as everybody who missed it comes screaming in. 1,770 on the S&P.
I digress.
One small step for banksters. One giant clusterfuck for mankind.
I was hoping we could have another discussion on auto loans today.
I just got another letter in the mail (3rd this week, I think) saying that I was pre-approved to get one.
Up to 84 month financing (7 years).
On the back in fine print, just below the signature of the president of the local bank it says that the MINIMUM amount for the 84 month-er is $35,000. Keep dragging it out suckers.
Of course if you only take out $20,000 you will be forced to settle for a 72 month term. That's a lot of "low monthly payments."
2.29% APR for new. 2.59% APR for pre-loved.
They also claim that they have "fast" loan approval. I'm guessing as soon as you walk in the door. Oh, but they only approve "up to" 100% financing. And I'm thinking: "the fuck would you need more than 100% financing for on a vehicle?"
Didn't we try that on housing?
The 1% blackmails Obama: US government has been shut down by the banksters
http://failedevolution.blogspot.gr/2013/10/the-1-blackmails-obama-us-gov...
EURJPY is "Carry"? seriously? unless you mean negative carry.. EURJPY closed at 132.5 and 1yr forward 132.20.. check your math
Why wouldnt VIX go down? the world didnt end, risk rallied and even with recent volatility 30day realzied vol on SPX is 10% vs. spot VIX at 15.50.. VIX clearly has more room to compress if this is the environment we stay in
BTFD!
That's gravitational pull.
Hey Sparky, do me a favor and cut that red wire right there......
Appreciate it.
I agree, WTF??
Check out the baltic dry index tanking today.
I still don't speak Nanex but that last screen shot does not look 'natural'.
A rape often has the elements of love, just perverted. Anyway, it only hurts for a little while. Mary Jo does not approve of this, but she can not complain if she can not see. Hold on, it gets worse.