The Last Minute VIX Murder

Tyler Durden's picture




And then this just happened... The lowest VIX close since Feb 2007


Close up...


And how does he do it? Through massive VXX selling in dark pools...

Is someone (cough Fed via Citadel) using dark pools to manage their volatility suppression - which implicitly spooks the actual markets in implied vol and thus in a "tail wags the dog" manner, juices the entire US equity market... but we do not find out about it until after hours as the dark pool unleashes its volume at VWAP pricing...


Makes us wonder if this is the fingerprints of the NY Fed's Kevin Henry hard at work managing perceptions via dark pools with as much leverage as possible via the vol markets.

just like he did here the week of The Fed Minutes


As he did this week...


Did The Fed just lose control?

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dontgoforit's picture

Oh the webs they weave!

Say What Again's picture

What does this say about the real market valuations, if they have to work that hard to keep the prices elevated?

ZeroPower's picture

Repeat after me - sell vol into the weekends. A no brainer.

AccreditedEYE's picture

Exactly. How do you fight an enemy with unlimited ammo? You don't, bitchez.

NoDebt's picture

".... And nobody goes to jail."

Say What Again's picture

If you're not already at happy hour yet...

Check out the AH volume on 5/21 & 5/23

Trade size equal 27,000 & 33,000!!!

flacon's picture

How come this massive volume spike did not affect the price of VXX? Shouldn't this amout of buying or selling move the bid/ask stack?

john39's picture

you leave the casino.  and spread the word.

asierguti's picture

If it's obvious, it's obviously wrong.  - Joseph E. Granville


The obvious rarely happens, the unexpected constantly occurs. - Jesse Livermore

zorba THE GREEK's picture

If someone doesn't know that all markets are rigged, it's because they don't want to know.

SheepDog-One's picture

'Did the Fed just lose control'?
Well I guess we can hope, but I'm not holding my breath.

zorba THE GREEK's picture

Today, everything is rigged.

max2205's picture

Why is the a hedge fund under water?

NoDebt's picture

Yes.  The largest one in the world.

Bingo Hammer's picture

When you think about it everything has always been rigged

walküre's picture

Yes, but the firepower of algos and digital leverage / debt / money is a whole new dimension.

Soon people will learn that winning at the NY casinos is like winning at Monopoly. It sure feels great but it doesn't buy you anything in real life.

I promise you that the value a.k.a. perception of their money is going to the dogs. If you want real stuff, you better buy it now because soon there won't be a seller interested in the monopoly money.

101 years and counting's picture

its legal because......

Say What Again's picture

...  its legal because the O-Bomber can sign an executive-order to do whatever he damn well wants to do.  He is King of the World

Oldwood's picture

Certain people make money from it?

Squid Viscous's picture

"Who needs the Vix when everything is Fixed?"

Number 156's picture

This is why it makes no difference what any of the market indices are. Who cares what the DOW or S&P are.
The entire system is really a con-game. Who could forget the latest fiasco with the ISM data?
Clueless investors see these markets going up and up, and feel they're missing the bandwagon. with their confidence won, they throw their money in.
Boy, just wait until this all unwinds. The fundamentals tell a different story.

Rainman's picture

Master Henry is testing the outer limits of the Patriot Act , I see. He will have lifetime job security ... because this will go on forever  < or at least until it doesn't work no mo >.

Nobody knows fair market value of any asset class. Why should stawks be different...? Buy any dip in anything if you ever see one again ! 

luna_man's picture



I might be losin, but have not stopped believin...


CRIMINALS, shoot your best shot...still waiting!

Tsar Pointless's picture

S&P 2000 by Flag Day. S&P 2100 by National Nude Day on July 14. S&P 2200 by August 17, National Thriftshop Day. S&P 2300 by my birthday, September 21.

After that, it's anybody's guess.

hegemony's picture

Not bad for a non POMO day. I've traded for many years and today trading was like the day after thanksgiving. I don't mind losing usually, as it's part of the job and I'm not Virtu financial hence I actually have down days. Today, however, I'm pissed mostly at myself for sitting here all day getting my ass pounded but my god what a friggen joke this was. I'm almost speechless but hey I get to wake up and do this shit again on monday.

debtor of last resort's picture

Ahhh, everything is vixed. Have a nice weekend bitchez. And remember, nothing is what it seems

We all passed Checkpoint Charlie. And there's no way back. Oh wait, there is, pulling your funds AND your fingernails at the same time


danimal's picture

Perhaps you could explain how vxx moves the vix? I say it doesn't , the vix is a statistic. VXX is vix FUTURES. You move the Vix by trading options. My guess is you are seeing a vxx futures arb. I suppose you could move the vix if u wanted to, but why? The vix doesn't move the market the market moves the vix. Not everything is a conspiracy to move markets.

Tsar Pointless's picture

Maybe not everything, but a lot of things.

FieldingMellish's picture

Market only affects spot VIX. If you move the futures curve (suppress it by selling VXX), you influence (by managing future expectations) the driver of spot, the S&P500. Tail wags dog.

Having said that, you could be correct in that its simply an arb play.

jubber's picture

Huge move up AH for all European Indexes as well can't even be bothered anymore to post them

valley chick's picture

Good call Tylers!  Job well done!

ebworthen's picture

The equities market is a 70 year old on Cialis and testosterone gel.

You're betting that he won't have a heart attack and die in the saddle like Nelson Rockefeller.

walküre's picture

It's the old geezers last ditch attempt to do something meaningful. It's their last shot at greatness. A few years and they're all dead. What comes next is none of their concern.

Have you noticed how each new generation is more pissed and less optimistic than the last? How long can that go on for before a whole group of someones somewhere snaps?

Bananamerican's picture

Seems like there's a new campus/workplace shooting every other day in Amerika...
I'd say quite a few people are "snapping" already

delivered's picture

Comfort breeds complacency. Complacency leads to letting your guard down (or in this case, dropping your pants). And when you let your guard down or drop your pants, you're just inviting a good old fashion getting bent over the rail fucking that you have nobody else to blame but yourself. But one word of advice, bring some nice flavored lubricants to help ease the pain of the entry and exit. Because given the size of the US's debt load (and world for that matter), the Fed's BS (that is balance sheet or if you like, bull shit), and the world's credit problems (think China unsecured debt), this one's gonna hurt. Until of course the world's CBs print $25 trillion next time around to attempt one more time to provide the ultimate happy ending. Unfortunately, you might have to pick between H. Clinton or A. Merkel being in charge of the happy ending, not a pleasant visualization at all!

DerdyBulls's picture

In the marines they'd call the securities market today a huge "chicken shit operation." I fail to see why anyone not complicit in this fraud participates.  

NOTaREALmerican's picture

Picked a bad week to stop sniffing VIX. 

silverserfer's picture

The sheep must not be spooked until they get to the slaughterhouse. 

MrTouchdown's picture

Here's the song that K-Hen plays while he kills the VIX:

firstdivision's picture

I'm riding a long position to Monday. All I lose are worthless pieces of toilet paper

ricky663's picture

FRNs (and other currencies) are not worthless, at least for now.
I use mine to buy food, wine, beer, diesel, golf rounds, electricity and internet, mobile phone, etc.

It is not that complicated guys. Sell slowly descending graphs, buy slowly ascending graphs. Exit at the "money shot." Leverage if you are so inclined.

Do so until the Black Swan arrives.

TeethVillage88s's picture

Stockcharts do a great job, too bad I suck at investing.

I hear if an Economist is good he makes himself rich. Guess I should read more ZH!!!

ricky663's picture

I exited TVIX about 3 weeks ago... It just wasn't working.
Holding long VIX positions has been suicide. Kinda reminds me of being long PMs last year.
You guys might get lucky and get a bounce, but why not stand aside for awhile? After all, you have forever (well, the rest of your life anyway) to trade the markets.
Good Luck and Happy Trading!

Turin Turambar's picture

The only profitable way to play TVIX the last few years is short.

Gamma735's picture

So I need to be short the VIX?