S&P, Dow Tower To Record On Turbo Tuesday, Russell Tumbles

Tyler Durden's picture

The Dow had its narrowest range day of the year today and volume was dismal (as weak as yesterday's) but we made new record highs so USA USA USA. From the start of the day stocks were in a wild world of low volume levitation of their own as bonds made lower and lower yields and USDJPY was not supportive at all. Once Europe closed, the bid for US equities disappeared and Nasdaq and Russell tumbled, with the Dow and S&P catching down to unch. Bundesbank bullshit sent the EUR lower (cracking below 1.37 at 6 week lows) and thus the USD higher (+0.3% on the week). Treasury yields tumbled (and flattened) all day with 30Y -2bps on the week (and 7Y -6bps from today's highs). VIX had another seizure today (this time spiking up) and closed higher.


It's Tuesday...for the Dow...


But the Dow had one of its lowest ranges in years...


Mission Accomplished for the S&P to hit 1,900...


But not for the Russell or Nasdaq...


VIX had another one of its seizures - there is something going on in here that is entirely too fragile...


Bonds weren't buying any of it...


And nor was USDJPY...



Bundesbank bullshit sent the EUR to important support levels...



Which obviously dragged the USD higher (but did not flop over into JPY weakness)...


Treasury yields are now lower for the week...


Gold ans silver flatlined as oil surged up towards $102 (though contract technicals may have been a driver).



Charts: Bloomberg

Bonus Chart: Gentle reminder of who's buying and who's selling...

Bonus Bonus Chart: IMF's Christine Lagarde says the global economy is picking up... she lied...

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flacon's picture

"LIE" spelled backwards is "TRUTH"


..and those anomalies on the VIX, we call those "bad ticks", much like every tick > 666 on the S&P going back to March 2009. 

NotApplicable's picture

I think that Lagarde was misquoted. She really said that "the global economy is picking up, right where it left off after the last crisis."

Oh regional Indian's picture

Indian market hit all time highs today here in India as well.

Sensex 24,000 +.

Mad money dashing around the spill ways of global finance, chasing gamma....

The CORRAPSE is going to be epic!



CrashisOptimistic's picture

Excuse me, but why is the most important parameter to all mankind (which just hit $102) generally not mentioned in these daily recaps?

gjp's picture

Central bankers killed all legitimate market participants.  Only zombies left now.  Hence the staggering, senseless movement and the ever-mounting collateral damage.

ebworthen's picture

"...low volume levitation."

Yup.  FED sugar - spun into lovely cotton candy.

Looks like their plan is working again; institutional buyers getting out and retail jumping into equities, eyes agog and mouths watering for the fluffy pink stuff.

Setting them up for a Fall crash?  Who knows when they will do it, but it's coming.

NoIdea's picture

Interesting quote today on money.cnn.com

"After first crossing over the 1,500 line in March 2000, it took the S&P 500 13 years to eclipse the 1,600 mark, according to S&P Dow Jones Indices. But the broad index then logged the next four round number milestones all in the past year."


So, definitely not a bubble

Squid Viscous's picture

Congrats Mr. Ben Shalom and Mr. Yellen, you killed the stock market... the last two days has been like watching paint dry 

FieldingMellish's picture

Taper means the juice is saved for the big boys. Less and less punch to go around.

ATG's picture

Re "VIX had another seizure today (this time spiking up) and closed higher."

VIX spiked down and closed -.82%

new game's picture

paint is dry, next it peels off due to lack of proper base...

(hopium you got high off the fumes)

Spungo's picture

I heard you can't get pregnant if you play a Led Zeppelin album backwards while doing it.

orangegeek's picture

RUT is diverging again - that's not a good sign for the upside tomorrrow.

Spungo's picture

I have a theory that people with orange skin cannot be trusted. That includes republican Boner and IMF chief Lagarde

Wait What's picture

it's becoming pretty obvious that the perpetual VIX smackdown is a policy tool used by the Fed to maintain the trajectory of US assets, primarily equities (its preferred wealth effect channel). it's a logical extension of their mandate: financial stability = low VIX, Fed tools = any futures, interest rates, liquidity channels to make low VIX happen. whether by proxy or explicitly, the Fed can maintain the trajectory ('stability') with little more than a phone call or a PM. maybe i'm seeing a conspiracy theory where one does not exist, but so many conspiracy theories have been proven conspiracy facts recently, it would not be a surprise.

Bernoulli's picture

Agree, but how low can the VIX go? zero? negative?

akbarovich's picture

1) The VIX increasing from 12.20 to 12.70 is not a spike. It's 0.5 vol points. 12.7 is still incredibly low vol. Yawn.

2) The VIX is not a tradeable instrument. It's a calculation based on hundreds of S&P option bids and offers. If some random far out of the money option goes no bid, that's what causes those VIX discontinuities. No conspiracy or rigged markets there. That's why people look at VIX futures not spot VIX.

3) Obviously the VIX can not go negative. I'll leave the "why" as an exercise to the reader.

Hard to believe anyone takes this website seriously anymore...

Wait What's picture

it didn't take me 10 seconds to prove point 2 wrong. it is tradeable. may be right about discontinuities, but i'll leave that for smarter people to research.

CONTRACT NAME: CBOE Volatility Index (VIX) Futures

The contract multiplier for each VIX futures contract is $1000.


CBOE Volatility Index - VIX
VIX Futures - VX

a few seconds more and i pulled a link to traded volume.


no conspiracy, he says.