WTF Chart Of The Day: VIX Smackdown Edition

Tyler Durden's picture

Today's pump-and-dump that failed to hold the S&P 500 in the green for 2014 was an almost perfect deja vu all over again of yesterday's. However, today saw a very rapid after-hours 6 point melt-up in S&P 500 futures thanks to a WTF-inspiring collapse in VIX (from 14.4% to 13.7%!!)


The pump-and-dumps...


and the WTF-inspiring smackdown in VIX...


Totally "normal"...


Charts: Bloomberg

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Abi Normal's picture

VIX smix, sin't that manipulated too??


OT:  have a laugh

Check the photo out...Merkel does mark a resemblence??

aVileRat's picture

Nobody uses the VIX to hedge the big books anymore for the same reason no fund worth his cost base management bothers to trade big blocks in the day-flow.

Such bullshit, it's on par with paying to listen to former Vice President Al Gore (and future Guardian of the Galaxy). Just walk away, VIX was an elegant instrument from more civilized times. It came in the colours of red & blue, for epic battles pre-TARPStar. Plenty of ways to make a synthetic VIX out of simple put/call's vs. the e-mini / vix program slam.



Abi Normal's picture

ya was thinking spy puts etc...I had one a while back was up 8x and like a fool didnt sell...duh!!! live and learn i guess..

flacon's picture

If VIX is a measure of calls and puts, and calls and puts ARE CLOSED AT FOUR PM then how can VIX change after 16:00:00.01? I have seen several times the call or put price change after the bell... how is this possible? There is no after-hours or pre-market for options as far as I know. Anyone like to correct me on that?

Abi Normal's picture

I wouldn't correct that with a truly is a headscratcher, but then again,, how many new Fed laws went into affect this Jan 1....40,000?  Or is that nationwide (including state stuff)???

1fortheroad's picture

Good Question flacon.


VIX Futures, extended trading hours.


hootowl's picture

Options can run for 15 minutes after 4P.M. closing.

TheRideNeverEnds's picture

I believe its all algos, they can determine the value of the SPX and its options from the futures price in nanoseconds and they trade another 15 minutes so that the "market makers" can sort out their stuff and flatten out if they want after the cash close. 


They are bidding this market to the moon in order to unwind their longs and in the requisite closing ramp back to green the VIX got squished.


Now that they have bid it up to the all time highs again in the after market they will be able to unload more of their longs to the bagholders, aka John Q Public, tomorrow.  I have gotta think they have unloaded much of their longs at this point to the various funds and individuals, many have probably also built up some healthy sized short positions.  We have to be pretty close now.  


At least I hope we are close.   When they flip the switch on the machines from green to red it sure will be glorious. 



asteroids's picture

The FED hit the panic button eh? Notice that GS and JPM were down almost 2% on the day. This action stinks.

Abi Normal's picture

LOL, wanker according to the Britts...

max2205's picture

Cause they know we are back to gap up 2% openings again like last year???cover before the market closes......amazing

Max Damage's picture

Bent fuckers, fuck all else to say about these thieving shitbags. Anymore suicides due this week?

All done to put a mark on a chart, and then use that mark

Ness.'s picture

Makes perfect sense to a crazy person.  Russia is rolling in the armoured vechicles, Kiev is burning to the ground and the TBTF banks are being investigated for a plethora of market manipulating schemes - no need for protection in that kind of environment.


USD/JPY/SPY is doing just fine, thank you very much.

Soul Glow's picture

Treasury sells bonds to JPM, JPM sells bonds to Fed for cash, JPM uses cash to short VIX/silver and goes long SPY.

Max Damage's picture

JPM uses cash leverage x30. Then when it finally goes tits up JPM get given our money, and Jamie gets a bonus. Twats

Abi Normal's picture

They are all fuckers, they pass the info along to the select in DC too, pffft!!!

ForWhomTheTollBuilds's picture

KWN had an uncharacteristically great interview with Andrew Huszar recently.  


He starts out saying, "I believe in the Fed and its mission but..." and from there on its everything talked about on the doom and gloom blogs including mention of his ownership of a certain intrinsicly worthless yellow metal.


I bet every single one of the people working for the Fed owns gold.  


Anyway, this article made me think of the interview because he talks about the Feds trading desk a bit.

NDXTrader's picture

An asteroid could hit the Earth and kill all life and the market would end up this week. End of the month statements go out soon and Yellen on Thurs.

NDXTrader's picture

Watch the little trick they do at 5:30 - they will print the last trade back where the cash market closed at 4:00. Then when they reopen at 6:00 futures will be printing 6 points green so that the Asians think all is well. They run that scam almost every day so that futures aren't red when Asia opens

Abi Normal's picture

It fis fquite fincredible, fwouldn't fyou fsay!

1fortheroad's picture


Opps, sorry about dat



timehill's picture

NDXTrader, just curious, "Who is THEY?".

Abi Normal's picture

f they're just gapping up to make the big trade, watch, market falls tomorrow by 150 and up the fnext day 230 pts...infcredible.

El Hosel's picture

The VIX is but one of the Tricks, welcome to Dirtyfuckerville. Have a nice day.

Abi Normal's picture

Thanks, just call me Beetlejuice!

Ulterior's picture

if $VIX doesnt work try $TRINSP - crazy - I tell you!

EtTuEtTu's picture

THAT'S the chart of the day? I would think Adam Jonas (of MS natch), takes the chart of the day, year and decade with his Tesla--> Utopia chart.