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VIX Slammed To 2014 Lows
In a greatly ironic moment for capital markets, minutes ahead of the Fed's Bill Dudley speaking about "low volatility in markets is a cause for concerns, indicates complacency," VIX just collapsed in a pile of "we don't need no stinking protection" volatility selling to its lowest level since December 2013 and almost its lowest since April 2013 recovery lows.
Dudley yesterday...
- *DUDLEY SAYS VOLATILITY IN MARKETS UNUSUALLY LOW
- *DUDLEY SAYS LOW VOLATILITY IN MARKETS MAY INDICATE COMPLACENCY
- *DUDLEY SAYS LOW VOLATILITY IN MARKETS CAUSE OF CONCERN
And VIX today...
Don;t fight the Fed - unless they say "sell" stocks or "buy" vol.
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Someone is caught short on the VIX and is trying to get out.
Whatddyaknow, the 11 am spooz BANG-UP, right on schedule, just like Monday and Tuesday.
Want to make instant cash working from home? Buy VXX puts:
http://stockcharts.com/h-sc/ui?s=VXX&p=D&yr=3&mn=0&dy=0&id=p30013003315
Ask the Chair
http://www.marketwatch.com/story/yellen-should-really-say-this-to-colleg...
China signs 30-year $400B deal for Russian natural gas http://www.chron.com/news/world/article/China-signs-30-year-deal-for-Rus... via @HoustonChron
The agreement "opened the door for Russia to enter into Asia's gas market," said Keun-Wook Paik, senior research fellow at the Oxford Institute for Energy Studies. Politically, the deal has provided "a breathing space for Russia," Paik said. "Russia, and Putin, can demonstrate it's not completely isolated because of the Ukraine crisis. Russia has demonstrated that they have a very reliable strategic partnership with China."
The contract "particularly important" at a time when Europe has threatened to cut gas imports and reduce its dependence on Russia because of the Ukraine crisis, said Alexander Lukin, a deputy head of the Russian Diplomatic Academy under the country's Foreign Ministry, quoted by the RIA Novosti news agency.
"We will be able to show to Europe that we have other customers," Lukin said.
Alexei Pushkov, a Kremlin ally who is head of the international affairs committee of the Russian parliament's lower house, said on Twitter: "The 30-year gas contract with China is of strategic significance. Obama should give up the policy of isolating Russia: It will not work."
You missed reading that header story on ZH how?
Yesterday's VXX dump was the tell. It shows the level of un-riggedness when even the volatility of a market is played with and not just the market itself.
The VXX is the most BROKEN POS in the markets today..totally useless
I wonder how much an advanced copy of Yellen's speach is going for?????
Who would be stupid enough to pay money for the Ponzi Munchkin's doved-up speech?
If the VIX measures volitility why doesn't it go up on both the massive up days and massive down days and fall on do nothing days?
SNAP.
There is no such thing as bad news anymore.
VIX measures implied volatility, which is the volatility implied by the price of put and call options. Essentially VIX measures the market's perception of market volatility in the near future and not a measure of the actual volatility of the day.
Dudley's an idiot, or compliant, if he doesn't realise the VIX is a paper market for the banks to play with, just like the paper market in Gold, that bears no relation to its physical counterpart.
The tail wags the dog.
DavidC
ever thought that he might not mean what he says?
i would not say these guys are idiots, you underestimate them at your own peril.
Arius,
I take your point but given the disappointing snippets of Bernanke's $250,000 speeches and the following link I wonder how clever they really are.
http://armstrongeconomics.com/2014/05/20/why-conspiracy-theories-give-wa...
DavidC
Difference is that Bernanke is NOT a banker. He is a Keynesian clown from the hallowed halls of academia whose job is to smear lipstick on the pig named "modern finance."
If you ever expected to hear him say something clever, you're not understanding why he was chosen in the first place.
I have said over and over... LT VIX charts and failure to break out yesterday... why even look at this anymore? Call me when it rips thru 22... till then, it's "contained".
For all the up-down arm flapping in stawk indexes, it's all just an illusion we're right where we were in January still.
And remember what happened at the end of January...
One can only hope!
DavidC
India’s new prime minister is big on solar power http://grist.org/news/indias-new-prime-minister-is-big-on-solar-power/#....
The Oil & Gas industry says to Obama India is a terrorist country ;-)
nothing a little siracha/HFT sauce won't cure
The odd thing is the correlation between oil and mid-term vol. Seems to me that someone *cough*K-hen*cough* is using those to levitate the horseshit equitites.
https://www.google.com/finance?chdnp=0&chdd=1&chds=1&chdv=1&chvs=Logarithmic&chdeh=0&chfdeh=0&chdet=1400702400000&chddm=1570&chls=IntervalBasedLine&cmpto=NYSEARCA:USO;NASDAQ:ZIV&cmptdms=0;0&q=NYSEARCA:SPY&ntsp=1&ei=grV8U_jLLcnzqgHswICQAQ
but it would appear diminishing returns is putting a hurt on the plans
https://www.google.com/finance?chdnp=0&chdd=1&chds=1&chdv=1&chvs=logarithmic&chdeh=0&chfdeh=0&chdet=1400702400000&chddm=37716&chls=IntervalBasedLine&cmpto=NYSEARCA:USO;NASDAQ:ZIV&cmptdms=0;0&q=NYSEARCA:SPY&ntsp=1&ei=JrZ8U_jgJsWNqQGLwYGYBQ
Yes, VIX was very low in December 2013.
But look what happened at the end of January 2014.
American economy is a circus act let by the fool in chief and the troll at the Fraudulent Reserve Bank. Historic deal between Russia and china and news Russia bout 900,000 ounces of Gold last month and the Wall Street filth is slaming the VIX and buying equities while the dollar is maniulated up and Gold manipulated down.
A hard concept to grasp with trading is that low vol normally leads to higher vol and high vol normally leads to lower vol.
Our minds aren't wired this way as we think high risk (vol) normally always leads to higher vol and low and falling vol leads to even further periods of contraction.
This is why a very smart trader once said - to be a success in this business you've got to screw your head on, so when you brush your hair in the morning you do it with your back to the mirror.
Timing is of course a hell of a big issue with the above, but right now, using the smart man's reasoning, we should all expect HIGHER volatility over the next severl months.
PS. FX traders are whinging and whining about the lack of action in their markets. Last night I looked at about 50 crosses (daily chart) and the charts indicate some great movements over the next few years. If you can hold on to your job in the meantime, great times should return.
'Trading'... yea...like the ZH article last evening said the markets are full of expert 'traders' who know the 'price' of things, but none of them know the 'value' of anything.
In a few years we'll all be trading from cardboard boxes over a heating grate in a back alley somewhere, while trying to recover from the most recent beating and confiscation of our belongings by the local gendarmes trying to remove us from their jurisdiction.
How can there be any volatility in completely fake, manipulated markets? The Fed is able to control the markets precisely where it wants them to be. Finally the VIX is reflecting that reality.
Similarly the low prices for gold and silver reflect the reality that the Fed has been able to control their prices every effectively for the last three years despite trillions of dollars of QE.
XIV is the product
Ah, L’économie c’est moi.
Dudley says "how come low volatility, I give $200 billion in treasury collateral every day to support gambling in the repo markets - could there be an association?"
Short Munibonds too
VIX hit 10 prior to 2007. So May's VIX is 14 and we are at all time highs.
It's always quiet before the storm - Sailor
"The spice is the worm! The worm is the spice!"
K-Hen's on fire today!
Just a thought. The European parliament elections are tomorrow - if they get as much of a trouncing as is expected, there could be some fun and games tomorrow and Friday.
DavidC
And no more FED pump for the week, should be very interesting...
cool. i get to sit back without rushing and buy more physical Silver at these stupid and totally fraudulent phony paper prices....
al thewhile with the same amount of debt coupon dollars as last month...
thanks u fucking sociopath MonneyChanger cocksuckers.
Can anyone remember when we have had a vix spike premarket on no news? Why every week before a holiday do we get a pre and open market ramp, vix smash on no news?
Mark to Unicorn¡
can't wait to hear what the bitch have to say
The VXX isn't moving, which should say that markets are heavily leveraged long with no apparent hedging. VXX should be bid, but there is also a complete absence of an inverted yield curve.
It's an "L" shaped recovery. A lot of green shoots are showing up in the service sectir,
Is Greece going to fucking default? Head for the hills but watch out for the BLM machine gunners.
Aaaaaggggghhhhh its time to go to college. And yes my FAFSA check did come in.