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"Mysterious" VIX-Seller Ramps S&P To Unchanged On The Week

Tyler Durden's picture




 

For the 4th day in a row, selling pressure in US equities climaxed as Europe closed. The big buying-panic today though was sparked with about an hour to go as VIX was pummeled lower and stocks levitated to save all kinds of key technical levels - (S&P unch, Nasdaq green on the week, S&P back above its 50DMA, Russell off its 7-month lows). Trouble with all that exuberance... bonds, the USD, commodities, JPY carry, and credit weren't buying it. The USD rose 0.2% for the 2nd week in a row (led by 0.5% weakness in the EUR) and JPY strengthened. Commodities all closed higher on the week, led by oil and copper (+2%) with WTI over $102. Treasuries sold off modestly into the late-day buying scramble in stocks but ended the week 10bps lower in yield (biggest weekly drop in 2mo, lowest in 6mo). VIX plunged back to almost 12 with its biggest daily drop in a month. T-Bonds and Bullion are both +7.2% YTD, S&P +1.6% YTD, Russell 2000 -5%YTD.

 

 

Behold... The VIXnado...

 

Which dragged stocks up to critical levels and off other critical levels...

 

S&P Sectors on the week...Financials worst, Tech best

 

But bonds didnt buy it today...

 

Nor did credit...

 

Nor did JPY carry

 

But leaves them lagging on the year still.. notice that the price appreciation of the US Treasury Long Bond and Gold are now equal for the year...

 

On the week, bonds rallied notably...

 

Commodities gained...

 

and the USD rose modestly led by EUR...

 

As a gentle reminder, credit markets are at best flashing orange if not red...

 

Charts: Bloomberg

Bonus Chart: Those "costs" are mounting up...

 

Bonus Bonus Chart: At least Money Flow is improving... oh wait...

h/t @Not_Jim_Cramer

 

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Fri, 05/16/2014 - 16:07 | 4767578 Cattender
Cattender's picture

Thank God!!!! the market matters MORE than ANYTHING ELSE!!!!!!

Fri, 05/16/2014 - 16:21 | 4767635 max2205
max2205's picture

Back to Rigged....wouldn't know how to trade it otherwise

Fri, 05/16/2014 - 16:43 | 4767693 Xibalba
Xibalba's picture

rigged, like a condemned building...or rigged like 3 card monte? 

Fri, 05/16/2014 - 16:46 | 4767698 BlueStreet
BlueStreet's picture

XLF isn't buying it either, closed below the 20 week.   

Fri, 05/16/2014 - 16:07 | 4767583 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

That was pretty fucking coordinated and planned. 

Fri, 05/16/2014 - 16:12 | 4767600 ACP
ACP's picture

Squeeze before the dump.

Fri, 05/16/2014 - 16:16 | 4767618 Zirpedge
Zirpedge's picture

Absolutely not, that's how you blow out a O-ring. Best thing to do is relax and read the WSJ, let things happen naturally.

Fri, 05/16/2014 - 16:31 | 4767657 ACP
ACP's picture

I can't relax reading the WSJ.

Fri, 05/16/2014 - 16:09 | 4767587 NDXTrader
NDXTrader's picture

Have no worry, they will slam USDJPY higher on Sunday night to catch up. This was all about options folks. The MMs seem perfectly fine letting people make money on calls, but will always destroy puts on the week

Fri, 05/16/2014 - 22:00 | 4768405 ricky663
ricky663's picture

Exited most of my puts on Thursday morning (great day!)
Even though VIX is at 3/6 month lows, it HAS NOT been good protection.
Definitely not a "buy and hold" market IMO, so I just nibble and pull out short term profits as they materialize.

Fri, 05/16/2014 - 16:14 | 4767591 ebworthen
ebworthen's picture

Must have a green weekend!

Weather's nice, people will be out for barbeques and walkies - and talking to each other.

"There's no place to get yield but in equities you know, they got this."

2008-2009 a distant memory, just a glitch in the system.

Moths to the flame.

Fri, 05/16/2014 - 16:10 | 4767592 fonzannoon
fonzannoon's picture

what happened to 48 hour deadlines and war over the weekend? 

Fri, 05/16/2014 - 16:13 | 4767608 Dr. Engali
Dr. Engali's picture

War headlines have been put on time out status. We don't want to spook everybody out of the 'market' that might cause an accident. We just want to scare out a few weak hands. War headlines will come back next week so that old Yeller can get some shorts to pile on that she can squeeze out later.

Fri, 05/16/2014 - 16:17 | 4767621 fonzannoon
fonzannoon's picture

I wonder if this guy lost a fight with a nail gun.

 

http://www.zerohedge.com/news/mark-grant-i-do-not-believe-any-longer-cat...

Fri, 05/16/2014 - 16:26 | 4767644 Dr. Engali
Dr. Engali's picture

If he did it was a win for us. His writing was awful.

Fri, 05/16/2014 - 16:23 | 4767640 RacerX
RacerX's picture

not deadlines.. "consequences"

Fri, 05/16/2014 - 16:11 | 4767593 AccreditedEYE
AccreditedEYE's picture

Uh-oh...bonds indicating a whole, whopping 10 point decline on SPX... possibly. Get out! Run for your lives!! The horror, the horror.

Was the VIX-Seller @Not_Jim_Cramer? That sly dog! Fat stacks for the weekend!

Fri, 05/16/2014 - 16:10 | 4767594 slightlyskeptical
slightlyskeptical's picture

It is more the case of protection being removed rather than outright selling of the vix. The vix is the result and not the cause.

Fri, 05/16/2014 - 16:11 | 4767595 Panafrican Funk...
Panafrican Funktron Robot's picture

Shorts:  Getting the Theon Greyjoy treatment since 2010.  Are we at the "eunuch" phase yet?

Fri, 05/16/2014 - 17:03 | 4767737 BrosephStiglitz
BrosephStiglitz's picture

Not sure why anyone without a direct line to Yellen would try to short in this age?  The "markets" can stay irrational for much longer than anticipated.  There will come a day when it is prudent to short, but it is not today.

Trying to pick that inflection point is a b*tch. 

Fri, 05/16/2014 - 16:11 | 4767599 debtor of last ...
debtor of last resort's picture

The world is nothing without the Belgium vix-slammer bitchez. Be greatful.

Fri, 05/16/2014 - 16:15 | 4767615 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

so there is a Belgian source not only buying US Treasuries, but slamming the VIX? 

Fri, 05/16/2014 - 16:47 | 4767646 debtor of last ...
debtor of last resort's picture

It's the same asshole.

Edit, i mean it's the same entity that does it. English is not my main language, so i didn't say asshole to you, but it's the same asshole that does 'it'.

Fri, 05/16/2014 - 17:04 | 4767739 NotApplicable
NotApplicable's picture

I've got to wonder if it isn't a Mecuria satellite office.

Fri, 05/16/2014 - 17:11 | 4767753 debtor of last ...
debtor of last resort's picture

With a Russian engine.

Fri, 05/16/2014 - 16:14 | 4767610 Ness.
Ness.'s picture

My guess is that those in charge didn't get the horrible confidence number until late in the day, and we ALL know bad news and the potential for civil war are good for stocks and bad for VIX protection.

 

Do I need a /sarc here or is it just understood?

Fri, 05/16/2014 - 16:20 | 4767631 Cattender
Cattender's picture

my post was Sarcasm Ness.. HEAVY SARCASM!!!!

Fri, 05/16/2014 - 16:21 | 4767634 Rainman
Rainman's picture

Kevin Henry, you evil basturd !

Fri, 05/16/2014 - 17:14 | 4767766 wagthetails
wagthetails's picture

KHank is on vacation in belgium. 

Fri, 05/16/2014 - 16:35 | 4767666 Haager
Haager's picture

A big VIX-short from Belgium, I may assume...

 

Seems logical to me that on Monday stocks will catch up to HY credit, right after open - which implies a drop. But no worry, POMO coming, too....

Fri, 05/16/2014 - 17:16 | 4767768 disabledvet
disabledvet's picture

Yep. We'll see if the dollar is about to put in a double bottom here and start surging again like last year.

Forget mere "fear trade" as we move to fear of God trade.

Fri, 05/16/2014 - 19:02 | 4768000 Godisanhftbot
Godisanhftbot's picture

 The wirters that follow all this correlation must be making huge killings daily. We are blessed they take time out from counting their booty to enlighten us.

Fri, 05/16/2014 - 19:57 | 4768099 Tenshin Headache
Tenshin Headache's picture

.

Fri, 05/16/2014 - 21:42 | 4768367 Yen Cross
Yen Cross's picture

  VIX= volume inflation XanaduGrease is the word...

Fri, 05/16/2014 - 22:40 | 4768465 razorthin
razorthin's picture

Refusing to admit that it is in serious trouble.  Refusing to admit that it is dying.  But dying it is - the great Bull<shit> market of 2009-2014...

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