VIX Slammed To 11-Handle Sends Dow To Record-er Highs

Tyler Durden's picture


Just as Gold was monkey-hammered late last night, we warned in the pre-open that it might happen and sure enough... VIX has been smashed back under 12 this morning, lifting the Dow to new record-er all-time highs and sending the S&P chasing its highs too... why not... Draghi promised to do something, sometime soon (even as the Fed is tapering and China says no more stimulus). What is really helping is USDJPY 102 once again which provided the opening ramp ignition. For all those on the 'healthy' rotation bandwagon.. the Nasdaq and momo names are outperforming (Nasdaq now unchanged for May) - so it's not that. Gold is up $25 from overnight lows and Treasuries are flat to modestly weaker as stocks smash higher.

VIX looks totally normal!!


As the overnight slam in gold has seen a $25-plus rally in the precious metal...


As USDJPY drives stocks to ever higher highs...


Taking the Nasdaq to unchanged for May (and Trannies soaring)


Charts: Bloomberg

Your rating: None

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Mon, 05/12/2014 - 09:48 | 4750518 PlusTic
PlusTic's picture

this is getting RIG-DICULOUS...

Mon, 05/12/2014 - 09:50 | 4750525 CH1
CH1's picture

Dow 36 thousand!

Then, 36 MILLION!

This time is DIFFERENT!!!!!!!

Mon, 05/12/2014 - 09:55 | 4750543 LawsofPhysics
LawsofPhysics's picture

Yes, yes, "all is well"...

Mon, 05/12/2014 - 10:04 | 4750557 NoDebt
NoDebt's picture

I had my Dow 20,000 hats printed up last fall.  Thought I might have a chance to break them out around Christmas, but it was not to be.

Looking pretty good now, though.  Only about 20% higher from here.  Surely we can accomplish THAT simple task by the end of the year, if not sooner.

Mon, 05/12/2014 - 10:07 | 4750575 Headbanger
Headbanger's picture

VIX got very near its 52 week low so there isn't much more room left to smash it down any further:

And USDJPY spike is no big deal except for a this "relief bounce" off horizontal support

So this equities rally is all fluff.

Mon, 05/12/2014 - 10:15 | 4750600 AccreditedEYE
AccreditedEYE's picture

You're right about VIX. I still believe that The Squid and its gaggle of "in the know" foot soldiers are churning the tape. About time for a move lower now and VIX 52 week low fits in with a nice reversal in equities. It will only be temporary though. Only *higher* prices will be acceptable in the end. (I'm getting tired of this too)

Mon, 05/12/2014 - 10:20 | 4750616 NoDebt
NoDebt's picture

Unless you were just injected with Polonium, you will probably live to see the day the VIX hits single digits.

Mon, 05/12/2014 - 10:24 | 4750632 Headbanger
Headbanger's picture

Could this be the "last hoorah" for  the banksters to fleece retail muppets before they take off for the Hamptons?


Mon, 05/12/2014 - 14:34 | 4751600 MeelionDollerBogus
MeelionDollerBogus's picture

nah, the last Hurrah is where entire cities and states are bought by Goldman Sachs and all taxes are replaced with rent which has no limit and can be paid in cash, gold or children.

Mon, 05/12/2014 - 10:01 | 4750560 mayhem_korner
mayhem_korner's picture



Obi-Wan Bernanke and the sheeple:

This is not the VIX you are looking for.  This is not the VIX we are looking for.

You can have's for sale.

We can go about our business.  You can go about your business.

Move along.  (waves)  Move along.  Move along.

Mon, 05/12/2014 - 09:50 | 4750531 DavidC
DavidC's picture

Frustrating and tiring.


Mon, 05/12/2014 - 14:19 | 4751537 MeelionDollerBogus
MeelionDollerBogus's picture

Shit-show is entertaining. Why frustrating? You didn't actually short the Fed, did you?

Mon, 05/12/2014 - 09:52 | 4750533 Hippocratic Oaf
Hippocratic Oaf's picture

It all makes sense.

Just wait.

yes, <sarc>

Mon, 05/12/2014 - 09:48 | 4750519 Sudden Debt
Sudden Debt's picture

Let's see what happens at 11AM...

Mon, 05/12/2014 - 09:53 | 4750534 playnstocks
playnstocks's picture

......and at 3:30PM

Mon, 05/12/2014 - 10:03 | 4750570 Stoploss
Stoploss's picture

You start with the VIX slam, ( S&P now like a rocket out of fuel ), then come the 3 & 6 month auctions to take it through lunch, for the final pop at 3:30.

Mon, 05/12/2014 - 09:48 | 4750521 Kaiser Sousa
Kaiser Sousa's picture


to complete lunacy....


Mon, 05/12/2014 - 09:50 | 4750530 Took Red Pill
Took Red Pill's picture

The reverse limbo market, "How high can you go?"

Mon, 05/12/2014 - 09:53 | 4750532 yogibear
yogibear's picture

They aim to get it ever higher. Think of the Zimbabwe economic model.

The Federal Reserve does a dog and pony show whenever the market has any sign of going down.

Trade accordingly.


Mon, 05/12/2014 - 10:35 | 4750668 disabledvet
disabledvet's picture

What's the point of trading?

Or better yet HOW does one trade this?
From ANY position...long or short?

Isn't it all just blood money at this point anyways?

Money is money of course...but it's almost like cash is what no one wants to have any value.

Bankruptcy hasn't been repealed. And isn't that the weird part?

Mon, 05/12/2014 - 09:54 | 4750541 TheRideNeverEnds
TheRideNeverEnds's picture

The VIX trading double digits is rich, sell it till it hits the 9 handle, then buy more S&Ps cause we will still keep going higher for about a year after the VIX makes new lifetime lows.  

Mon, 05/12/2014 - 10:02 | 4750567 Squid Viscous
Squid Viscous's picture

still waiting for 1900 clown, 7 weeks and counting...

Mon, 05/12/2014 - 10:10 | 4750584 TheRideNeverEnds
TheRideNeverEnds's picture

Look at the tape, not a downtick all day, S&P and DOW making new lifetime highs, RUT and NDX up over 1%; not a seller to be found. 


Its just a matter of time, S&P broke out of its range, TF, NQ broke their downtrend and YM broke to new all time highs can't fight the FED, the Obamabux on the sidelines need somewhere to go.    


This is day one of the upmove.

Mon, 05/12/2014 - 10:16 | 4750607 Squid Viscous
Squid Viscous's picture

yeah i can read the tape thanks - but you were pounding the table for ES @ 1900 by end of March or so... lol

Mon, 05/12/2014 - 14:11 | 4751504 MeelionDollerBogus
MeelionDollerBogus's picture

ES 19 kerjillion berjeelyun!

Mon, 05/12/2014 - 09:55 | 4750545 LawsofPhysics
LawsofPhysics's picture

FAZ me bitchez...

Mon, 05/12/2014 - 14:09 | 4751500 MeelionDollerBogus
MeelionDollerBogus's picture

hvu (tsx), uvxy even more leveraged in movement, 11x inverse to s&p500, dow.

faz only 3x inverse

Mon, 05/12/2014 - 09:57 | 4750551 fonzannoon
fonzannoon's picture

but Ukraine!!!!!


Mon, 05/12/2014 - 10:02 | 4750568 NoDebt
NoDebt's picture

Heh heh heh.  Exactly.  

Mon, 05/12/2014 - 09:57 | 4750554 Aknownymouse
Aknownymouse's picture

Fuck them all

Mon, 05/12/2014 - 10:00 | 4750559 Global Hunter
Global Hunter's picture

What happens when their actions take the VIX down to 1?  Zero? Can we have a negative VIX?  And by that point will there be anybody left to care?

Mon, 05/12/2014 - 10:03 | 4750573 mayhem_korner
mayhem_korner's picture



Cancer of the zero-vix.

(it's bad...I know.  But I'm underscotched at the momento)

Mon, 05/12/2014 - 10:14 | 4750598 Global Hunter
Global Hunter's picture

thumbs up because you made me laugh 4 times a 15 word post.  In all serious I stopped drinking partly because observing all this mad shit going on around me was insane enough.  Stay underscotched for a few months, I swear this shit gets even loopier and even more batshit crazy the more sober you get and its a trip itself.

Mon, 05/12/2014 - 10:04 | 4750562 messymerry
messymerry's picture

OK, who spilled paint on the invisible hand???  The mullets are probably going to stampede and we will have a hell of a mess to clean up.  

Somebody git a rope, and make it a stout one, we've got ourselves a hippo to hang.  


Hey Banzai:  Do something on the "Ol' Yeller" theme...  ;-D

Mon, 05/12/2014 - 10:10 | 4750585 rsnoble
rsnoble's picture

Will the VIX cease to exist at zero? LOL I see someone already said that.  Oh well.


Only PEACHY KING is cool.

Mon, 05/12/2014 - 10:22 | 4750626 STG5IVE
STG5IVE's picture
US starts countrywide nuclear drill after similar war games in Russia
Mon, 05/12/2014 - 10:27 | 4750638 BeetleBailey
BeetleBailey's picture


Mon, 05/12/2014 - 10:29 | 4750642 NoIdea
NoIdea's picture

The reason for today's rise is obvious: it's Tuesday tomorrow

Mon, 05/12/2014 - 10:34 | 4750662 SanfordandSon
SanfordandSon's picture

After 40 years of investing and trading I have finally learned that trees do grow to the sky or are perceived to when endless fertilizer appears to be available.  And I keep getting drowned out by everyone chating - give me mo-mo...

After 40 years I still believe that the most precarious times are those when people are under the illusion that there is a source of endless fertilizer.  Deep survival requires the correct perception of reality.

Mon, 05/12/2014 - 10:47 | 4750715 Dead Man Walking
Dead Man Walking's picture

didnt we spend most of the nineties with the vix around here ?

Mon, 05/12/2014 - 12:50 | 4751217 crash commando
crash commando's picture

Long cash, comic books, oil, and other combustibles.



Mon, 05/12/2014 - 13:32 | 4751367 The worst trader
The worst trader's picture

Last tuesday was a down market day, tomorrow the world ends.

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