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Epic VIX Slams Sparks Buying Panic In Stocks

Tyler Durden's picture




 

Nasdaq and S&P back into the green for the week... Dow back into the green for the year...

 

mission accomplished (but a little premature). And all it took was an options-expiration debacle-driven collapsed in VIX...

 

 

Who could have seen that coming?

Can't help but feel this is a little premature to last

Bonds ain't buying it...

 

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Fri, 05/16/2014 - 15:19 | 4767402 101 years and c...
101 years and counting's picture

just more "market efficiencies"

Fri, 05/16/2014 - 15:36 | 4767463 Divided States ...
Divided States of America's picture

The VIX is fuckin useless...its just another index instrument for these financial manipulators to use to keep propping up this gong show...honestly, just take this VIX out of its misery....

Fri, 05/16/2014 - 15:40 | 4767479 fonzannoon
fonzannoon's picture

It looks like the XIV should be the core of any portfolio since it is clearly a tool used to ramp the markets.

 

http://finance.yahoo.com/q/bc?s=XIV&t=2y&l=on&z=l&q=l&c=spy

Fri, 05/16/2014 - 15:45 | 4767489 Divided States ...
Divided States of America's picture

Yup, looks like it fonzy. Its a core holding of every jobless student and pension less grannies who makes money day trading.

Even the Vicks VaporRub is more useful that the VIX.

Fri, 05/16/2014 - 15:19 | 4767405 pound the vix
pound the vix's picture

Pound the VIX

Fri, 05/16/2014 - 15:27 | 4767429 ArkansasAngie
ArkansasAngie's picture

How is this a healthy market?

Time for plan reset

 

Fri, 05/16/2014 - 15:21 | 4767410 max2205
max2205's picture

Epic.....

Fri, 05/16/2014 - 15:46 | 4767493 Headbanger
Headbanger's picture

Massive....

Fri, 05/16/2014 - 16:04 | 4767569 dontgoforit
dontgoforit's picture

Pinto!

Fri, 05/16/2014 - 15:21 | 4767412 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Who, or what group of who, actually pounds the VIX?

Fri, 05/16/2014 - 15:28 | 4767433 ArkansasAngie
ArkansasAngie's picture

That would be the banksters.  They evidently do have full control of the markets now.

Fri, 05/16/2014 - 15:29 | 4767440 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

How do they coordinate this shit? I assume that this isn't just one bank doing the buying (or suppressing).

Fri, 05/16/2014 - 15:44 | 4767486 shitco.in
shitco.in's picture

via Twitter

Fri, 05/16/2014 - 15:50 | 4767509 flacon
flacon's picture

Plastic cups tied together with string. 

Fri, 05/16/2014 - 16:00 | 4767548 Headbanger
Headbanger's picture

And semaphore for the audio challenged...

Fri, 05/16/2014 - 16:07 | 4767580 flacon
flacon's picture

LOL! Braile Morse code. ;) Feel the bumps coming in off the wires. 

Fri, 05/16/2014 - 15:46 | 4767492 MeelionDollerBogus
MeelionDollerBogus's picture

NSA & insider trading. They see all the trades & all your accounts to know what you might trade or have pending orders for. They know where to strike.

Fri, 05/16/2014 - 15:52 | 4767513 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

They know when I am short. 

Fri, 05/16/2014 - 17:46 | 4767854 Redneck Hippy
Redneck Hippy's picture

Algos talk to each other.

Fri, 05/16/2014 - 15:22 | 4767414 jubber
jubber's picture

Every Friday this shit happens without fail

Fri, 05/16/2014 - 15:22 | 4767415 AccreditedEYE
AccreditedEYE's picture

Maybe you should tell that guy @Not_Jim_Cramer that his long-term VIX chart is no longer required... Full Disclosure, was he short VIX too? Joke is on us, right? Good times, good times.

Fri, 05/16/2014 - 15:23 | 4767416 Dr. Engali
Dr. Engali's picture

Fake market pull backs, the gift that keeps on giving.

Fri, 05/16/2014 - 15:25 | 4767424 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

every day a bear trap is set.

Fri, 05/16/2014 - 15:26 | 4767427 Xibalba
Xibalba's picture

This is getting stupid.

Fri, 05/16/2014 - 15:41 | 4767482 Pooper Popper
Pooper Popper's picture

I think we crossed stupid a while ago...

 

Were entering the,,,,,,FUCKING INSANE!

Fri, 05/16/2014 - 15:30 | 4767445 pound the vix
pound the vix's picture

What's the definiton of insanity "doing the same thing but expecting a different outcome"?

 

I am insane

Fri, 05/16/2014 - 15:34 | 4767454 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

buying pressure resumes at 3:30 after a short 20 mins to catch its breath on that uphill sprint. 

Fri, 05/16/2014 - 15:34 | 4767459 pound the vix
pound the vix's picture

VXX new lifetime low.  Amazing chart 7,700 to 36.60

Fri, 05/16/2014 - 15:37 | 4767466 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

nicely chosen name. 

Fri, 05/16/2014 - 16:01 | 4767558 pound the vix
pound the vix's picture

I'd be a rich man if I actually did what it says

Fri, 05/16/2014 - 15:35 | 4767461 Spungo
Spungo's picture

lol VIX. I was looking at the Google Finance home page and how every stock I'm watching (but don't own) is red. Then I see the VIX is down as well. How does that work?

Fri, 05/16/2014 - 15:40 | 4767477 MeelionDollerBogus
MeelionDollerBogus's picture

options prices set the VIX. When the options are unusually skewed so the puts and the calls don't actually match up to the 'middle' at the money price, that happens. VIX, HVU, UVXY, VXX get pricing from the options rather than FAZ for example just being a market-inverse index.

Fri, 05/16/2014 - 15:38 | 4767470 MeelionDollerBogus
MeelionDollerBogus's picture

http://scharts.co/1iJXOYm
meh. spy x hvu 1/11 = 219 for trend, = 217.26 for now
188.07 x 4.89 1/11
Given that for the same SPY price you could see HVU (or UVXY, around 9.1x HVU but in USD) go up another 9% to 10%.
With markets dropping a much higher increase.

http://flic.kr/p/ikyjpz

Fri, 05/16/2014 - 15:41 | 4767481 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

That was a fucking world class run up. The charts of all the indices are almost like a vertical wall starting around 230pm

Fri, 05/16/2014 - 15:47 | 4767494 nosoeawe
nosoeawe's picture

who's doing the vix slam? 

none other than our very own big eared, traitor in chief, obozo.

you see, everytime the vix goes down by 1 point, obozo's ratings go up by 1 basis point.

the big eared man child likes to invite over ol yeller to play vix slam in their pajamies. kind of like nintendo. 

after market close, mr. michael obozo changes ol yellen's depends and obozo's diaper before putting both miscreants down for nappy time. 

this gives mr. michael obozo time to catch up on his studies. studies like, muslim brotherhood 101, killing children with drones 102 and transgendered studies 169.

Fri, 05/16/2014 - 16:07 | 4767577 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

the only slam there is when he's with reggie. this is beyond him, way beyond.

Fri, 05/16/2014 - 15:52 | 4767517 madbraz
madbraz's picture

When will this sh*t end and criminal prosecution start?  

 

How many books on stock market corruption does Michael Lewis have to write?

 

How obvious does the corruption and manipulation have to be?  Can it get any more blatant?

 

Is there any decent human f*cking being in charge of this mad house with a minimal sense of common decency and honesty that will put as stop to this?  Isn't there one dammed person who will go after these shysters?

 

It's becoming incomprehensibly corrupted, even for something that was always somewhat manipulated.

Fri, 05/16/2014 - 16:02 | 4767560 ebworthen
ebworthen's picture

Paper volatility, paper Gold, paper Silver - zero tangibles or fundamentals.

Fri, 05/16/2014 - 16:03 | 4767563 jubber
jubber's picture

What you may not be aware of is this shit just catapulted European futures up with it, Switzerland for example  just hit an ATH !!!! and the underlying market is obviously closed, loads of European shorts taken out as well because of this same shit every night.

I'm almost hoping Vlad invades with the whole fucking red army so this shit would gap down 1000 points Sunday!

Fri, 05/16/2014 - 16:04 | 4767564 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

2 o'clock pump, vix slammed, pm's hammered = is the new norm and has been and will be until the guillotine are rolled out.

Fri, 05/16/2014 - 16:03 | 4767565 slingshot
slingshot's picture

quit complaining get on the right side of the trade

Fri, 05/16/2014 - 16:03 | 4767566 pound the vix
pound the vix's picture

How does the SEC not see this corruption.  Oh that's right, they don't care.

Fri, 05/16/2014 - 16:05 | 4767570 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

lol the sec, those guys. they are in cahoots with tribe cartels along time ago.

Fri, 05/16/2014 - 16:12 | 4767603 dontgoforit
dontgoforit's picture

Synchronistically complicit.

Fri, 05/16/2014 - 16:04 | 4767568 TeaParterade
TeaParterade's picture

NO! NO! The DOW went up? NO! NO! Quick, SOW more fear. SOW more panic. QUICK! Quick! More negative headlines! We need more panic words. more SMASH. more COLLAPSE. MORE PANIC! Quick, get on the conspiracy theory generator. I want a GOOOOd obama federal reserve perhaps walmart thrown in there conspircy theory. Pictures of Tanks? Throw them in there too. We need help FAST!

CAN SOMEONE STOP THIS MADDRESS OF POSITIVE MARKET MOVEMENT?

Our freedom depends on it.

 

Fri, 05/16/2014 - 16:07 | 4767581 dontgoforit
dontgoforit's picture

T'aint good, t'aint bad.  Taint.

Fri, 05/16/2014 - 16:31 | 4767648 TheRideNeverEnds
TheRideNeverEnds's picture

In fairness, the VIX should be trading single digits considering the risk of downside continuation from these levels is basically zero what with all the manipulation of the market and the fact that S&P 2000+ at the end of this year is a given.    

Fri, 05/16/2014 - 22:57 | 4767783 chirobliss
chirobliss's picture

Once again ZH conflates effect with cause, and fails, but of course it serves the narrative of a nonsensical broken market.

The VIX collapse was an appropriate response to the third test and hold of the 50DMA, that ZH had loudly trumpeted yesterday as the line in the sand marking the beginning of the apocalypse.

 

If it was such a deal to merit its own headline yesterday, why not today when that important level held and the market took off with every short crowded in waiting for the 50DMA break, forced to cover.

 

There are a million reasons why markets turn where they do–VWAP, old support, MA's, and volume and momentum exhaustion after a 5 point move.

 

It aint rocket science but if all you see is manipulation AND you misinterpret the big swings in the VIX as a cause and not a consequence, then more BS flows out of ZH.

 

Don't get me wrong, I'm not certain that the VIX was not a factor in the upturn, but you haven't demonstrated its efficacy either, just by saying "... it definitely is the cause."

 

That's value-free analysis... in fact it is butt-plucking plain and simple.

Fri, 05/16/2014 - 18:06 | 4767897 AdvancingTime
AdvancingTime's picture

Over the years we have witnessed the type of market reversal the big banks supported by the Fed can generate with a concerted effort to buy S&P 500 index futures at crucial support points late in the day. This has proved more than enough to turn the markets from red to green in the blink of an eye. 

Even a bad report on job creation is twisted and spun as to mean more Federal Reserve support for easy money policies and a reason to rally the market. It seems no suggestion of weakness no matter how subtle can exist because it may begin to unravel the already fragile consumer confidence. More on this subject in the article below.

http://brucewilds.blogspot.com/2014/04/bears-have-little-reason-for-conf...

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