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FOMC Sparks VIX Plunge; Stocks & Bonds Jump, USD Dump

Tyler Durden's picture




 

The short-end of the Treasury curve is unch but the longer-end is flattening notably with 10Y -4bps from pre-FOMC. S&P futures are surging (because why not) on the news that there's more taper, less growth, and higher rates than expected. Perhaps the most critical aspect is the collapse in VIX, which is now 1 vol lower than when Dudley warned of "complacency" at almost a 10-handle. Gold is up modestly higher nd the USD Index is down..

 

 

VIX is almost at a 10 handle!!

 

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Wed, 06/18/2014 - 14:49 | 4870519 madbraz
madbraz's picture

Dudley got pissed that the 10yr yield dropped below 2.6% and promptly stepped in.  Wonder which primary dealer is on the wrong end of that one.

Wed, 06/18/2014 - 14:55 | 4870553 NOTW777
NOTW777's picture

$XLU BO

Wed, 06/18/2014 - 15:07 | 4870617 CClarity
CClarity's picture

Vix just touched 10.99

No risk here - step away!

Until you know what, just not when

Wed, 06/18/2014 - 15:09 | 4870625 Headbanger
Headbanger's picture

Oh yaaaay!  The Fed is saving us again cause look at the """market""" going higher!!

Fuckin retards..

Wed, 06/18/2014 - 15:34 | 4870723 NotApplicable
NotApplicable's picture

So... mathematically, can VIX ever go negative, or will we just get to watch it asymptotically approach zero?

Wed, 06/18/2014 - 15:08 | 4870620 negative rates
negative rates's picture

Almost aint good enough.

Wed, 06/18/2014 - 15:12 | 4870635 Squid Viscous
Squid Viscous's picture

your posts make no sense, ever, please go away? thanks in advance

Wed, 06/18/2014 - 14:56 | 4870559 DoChenRollingBearing
DoChenRollingBearing's picture

Boorish!

Wed, 06/18/2014 - 14:49 | 4870521 Dr. Engali
Dr. Engali's picture

'Markets' ...... Lol

Wed, 06/18/2014 - 14:53 | 4870545 slaughterer
slaughterer's picture

If she does not make a gaffe during Q&A, then we have lift off to ES 2000 for EOQ window dressing. 

Wed, 06/18/2014 - 15:04 | 4870603 Dr. Engali
Dr. Engali's picture

Holding on long and strong taking advantadge of the BernankenYellenStein's free 'money'.

Wed, 06/18/2014 - 14:54 | 4870552 NoDebt
NoDebt's picture

I imagine the Fed is doing to markets kinda like what that red-headed chick in American Pie did to Jim Levenstein's character.

Jumping on top, screaming at him.  "What's my name, bitch?"  "Say my name!"

"Janet Yellen!!"

"Damned right!"

 

 

Wed, 06/18/2014 - 15:07 | 4870605 Jayda1850
Jayda1850's picture

Watching these farce markets reminds me of watching a really good magic act. Every sense of reasoning is screaming the feat is impossible and is breaking every fundamental law of physics and common sense. You know full well it is just a trick, but the audience's reaction and the complexities of the act have you questioning basic reality. Like maybe it was I that took the wrong pill and I'm the one living in the illusion. Maybe numbers and math do not matter. Maybe there is no spoon. Good luck to all my fellow ZHers, may we atleast find some sanity within ourselves to keep us grounded in this ever increasing insane world.

Wed, 06/18/2014 - 14:50 | 4870524 LawsofPhysics
LawsofPhysics's picture

fun-der-mentals....

 

Wed, 06/18/2014 - 14:50 | 4870527 fonzannoon
fonzannoon's picture

"Madam chair what is your tolerance for inflation, seeing that recent data has inflation running higher presently than your inflation forecast for 2016?"

"Our inflation forecats are running in line with our inflation forecasts, as long as you disregard the noise (inflation) then it seems like everything is in line.

Wed, 06/18/2014 - 14:53 | 4870544 pods
pods's picture

I would forever watch all of these dog and pony shows if she merely utters the phrase:

"And lemme tell ya one more thing about the negro......"

pods

Wed, 06/18/2014 - 14:56 | 4870560 ThroxxOfVron
ThroxxOfVron's picture

What a black day that would be...

Wed, 06/18/2014 - 14:55 | 4870561 NoDebt
NoDebt's picture

Stop it.  I'm getting all misty.

Wed, 06/18/2014 - 14:57 | 4870567 fonzannoon
fonzannoon's picture

LOL Pods...never forget the funnies.

Wed, 06/18/2014 - 14:52 | 4870537 GolfHatesMe
GolfHatesMe's picture

How about FOMC Orchestrated VIX plunge

Wed, 06/18/2014 - 15:36 | 4870733 Wait What
Wait What's picture

I, for one, would love to see VIX drop to zero, just to see what actually happens. consequences schmonsequences, let's ride this whip til the wheels fall off.

Wed, 06/18/2014 - 14:52 | 4870538 Yen Cross
Yen Cross's picture

     Bad news is good news as long as there's toner in the cartridge...

Wed, 06/18/2014 - 14:53 | 4870540 Stoploss
Stoploss's picture

Gold:  UHHhhhhhhhhh.....

Wed, 06/18/2014 - 14:54 | 4870551 Duffy
Duffy's picture

How much of this is emanating from Belgium?

 

Wed, 06/18/2014 - 15:03 | 4870598 mayhem_korner
mayhem_korner's picture

 

 

Waffle-nation is going to need bigger vaults...check that...bigger servers to handle all of the Treasuries the Janet is parking there.

Wed, 06/18/2014 - 17:34 | 4871175 mt paul
mt paul's picture

Belgium

 

is going to need

a bigger waffle 

Wed, 06/18/2014 - 14:57 | 4870565 BlueStreet
BlueStreet's picture

Good job of controlling 'complacency'. This world could not possibly be run by a bigger bunch of fools. At least it will keep Fleckenstein busy with a Bubbles sequel.

Wed, 06/18/2014 - 14:59 | 4870581 khakuda
khakuda's picture

Babababubble!

Wed, 06/18/2014 - 15:00 | 4870586 mayhem_korner
mayhem_korner's picture

 

 

This isn't the VIX your looking for.  Move along.

Wed, 06/18/2014 - 15:00 | 4870589 madbraz
madbraz's picture

Who would have thought that the market would head higher upon FOMC announcement...what are the odds...something like 99%.  

 

It's a given that this NY FED has a golden rule - no down days on FOMC, never. 

Wed, 06/18/2014 - 15:01 | 4870593 walküre
walküre's picture

Once upon a time, there was a land .... and the central bank of this land kept on promising that interest rates would rise.

But they never did and all the people in all the lands lived happily ever after.

The End

Wed, 06/18/2014 - 15:04 | 4870594 firstdivision
firstdivision's picture

Soooo....the Fed continues to tighten, ECB has gone negative, JPY is a clusterfuck, AUD has no direction as China commodities are fucked (we just don't quite know how fucked), the global macro indicators have all rolled over...and the USD dumps.  Guess the end is neigh

Oh, and WTI just doesn't give a fuck either way.

Wed, 06/18/2014 - 15:12 | 4870633 disabledvet
disabledvet's picture

"Increasing competitiveness."

This is like the financial equivalent of "knock 'em sock 'em robots" with equities the blue guy and treasuries the red guy.

Wed, 06/18/2014 - 15:01 | 4870595 John Law Lives
John Law Lives's picture

If Central Banks are padding their balance sheets with equities, who knows how long this shiteshow can continue.  It seems that fundamentals mean absolutely nothing, and true price discovery is now an anachronism.  Great job, banksters.

FUBAR.

Wed, 06/18/2014 - 15:09 | 4870623 Cthonic
Cthonic's picture

Wanna see some gratuitous financial bloodshed?  Watch me short some XIV @ 43.50 or so...

Wed, 06/18/2014 - 15:16 | 4870648 Squid Viscous
Squid Viscous's picture

is that a long or short VIX frankenstein ETF can't remember, either way you're fucked unless you scalp it for peanuts,

Wed, 06/18/2014 - 16:02 | 4870864 Cthonic
Cthonic's picture

Inverse VIX.  44.30 we'll see what sort of gap carnage I take in the morning.

Wed, 06/18/2014 - 15:14 | 4870638 Urban Redneck
Urban Redneck's picture

The deadliest Ebola outbreak in world history spreading to Wall Street should fix the vix.

http://www.who.int/csr/don/2014_06_18_ebola/en/

http://www.afro.who.int/en/clusters-a-programmes/dpc/epidemic-a-pandemic...

Imagine what would happen if that bitch got loose at FOMC or Kappa Beta Phi party...

Wed, 06/18/2014 - 15:14 | 4870640 B2u
B2u's picture

Gotta keep the TBTFB bonuses rolling in.....

Wed, 06/18/2014 - 15:20 | 4870663 I Write Code
I Write Code's picture

Ms. Yellen, wot happens in a year, to anyone who buys a bond today, and does not like you own a printing press?

Oh don't you worry your pretty little head about that:

que sera sera
whatever will be will be,
there's no volatility,
que sera sera.

Wed, 06/18/2014 - 15:24 | 4870677 buzzsaw99
buzzsaw99's picture

VIX is a wonderful "product", guaranteed to lose money over time. $1 invested at inception is worth like a penny today.

Step right up and test your skill. Three tries for only $1! [/carnival barker]

Wed, 06/18/2014 - 15:59 | 4870850 Conax
Conax's picture

"Damn, Ethel! Our stawks went up again, Who said we should buy gold?" 

I'm Bronco Bahama and I approve this mess.

Wed, 06/18/2014 - 20:12 | 4871717 razorthin
razorthin's picture

If it is proved that the Fed is, directly or indirectly, trading the VIX or equities, my interpretation of the Constitution would have the whole cabal hanging before the public.  Or maybe I should say hanged again, after they are hanged for debasing the currency.

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