Dow Breaches 17,000 As VIX Plunges To New Feb 2007 Lows

Tyler Durden's picture

Stocks ignored yesterday';s spike lower in VIX but didn't today. VIX closed at 10.3 - its lowest close since Feb 2007. Stocks initially dropped on the 'good news is bad news' payrolls report but thanks to ECB jawboning the EUR down (USD up), USDJPY went on a stop-run and blew back through 102 providing just the ignition to get stocks going. Bonds sold off on the jobs print but rallied back all day to close only 2bps higher in yield. The USD rose over 0.4% - its best day in 2 months. Gold, silver, and copper rose after the jobs data. Stocks rallied ~0.4% from the payrolls print and closed with a 'standard' melt-up buying panic into the long-weekend.


Stocks rallied ~0.4% from the payrolls print (after an initial drop)


and the Russell went totally dead after Europe closed...


USDJPY started it but didn't finish...


But VIX was large and in charge as it tumbles back to a 10-handle


But bonds didn't buy it at all...


FX markets were very noisy - the Riksbank surprised with bigger-than-expected rate cut (and SEK dumped) and then Draghi and US jobs sent EUR lower and USD higher (closing +0.55%!)


Gold and silver slipped into the print then were jammed lower and rallied for the rest of the day. Copper continues to surge in CCFD unwinds...



Charts: Bloomberg

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tom a taxpayer's picture

Music for DOW 17,000


Fly me to the moon
And let me play among the stars
Let me see what spring is like
On a Jupiter and Mars

In other words, Fed, hold my hand
In other words, baby , kiss me

Come fly with me, let's fly, let's fly away

Once I get you up there

Where the air is rarefied

We'll just glide


Frank Sinatra, Chairman of the Board


Party like it's 1929

Loose Bruce

Pooper Popper's picture

Im thinking more like Five Finger Death Punch!

Burn Motherfucker Burn,

Burn motherfucker Burn!

Their last album was the shit!

Headbanger's picture

Single digit VIX will release the Kraken!


There's nothing left for the Wall Street scum balls to get out of this """market""" now and they know it.

Expect to see Wall Street become a ghost town soon as all the rats won't come back from vaction.


And they've fucked the market for the next 30 years at least!


TeamDepends's picture

Wouldn't they just love to knee-cap Americans on July Fourth?  So sorry, there's been a glitch/hack, come back Monday.  Then Monday, so sorry- bank holiday!

Quus Ant's picture

Let it go to the moon.  I hope it does.  Parabolic.  Let every capitalist, socialist, libertarian, conservative, liberal, religious, atheist, fascist, utopian, distopian, nihilist dream come true.  Then maybe we can put this culture to bed and see what greets us in the morning.

disabledvet's picture

I was thinking "Cousin Brucie" and Elvis actually cuz this market is all about the rock and roll.

Small caps still sucking wind all year which makes for an intriguing short term "poke" as the market might be regrouping here for a major move higher. It would be inflationary as the Fed is no longer squeamish about being openly "dual mandate." That adds risk to the debt market...on the other hand it adds reason to the small cap space as an inflation hedge.

Just talking off the top of my head so far.

junction's picture

Lyrics to Remember My Forgotten Job (Modification of song "Remember My Forgotten Man")


I don't know if I deserve a bit of sympathy

Forget your sympathy, that's all right with me

I was satisfied to drift along from day to day

Till they came and took my job away

Remember my forgotten job

You put a rifle in my hand

You sent me far away

You shouted: "Hip-hooray!"

But look at me today

Remember my forgotten job

You had me cultivate the land

I walked behind the plow

The sweat fell from my brow

But look at me right now

Keltner Channel Surf's picture

That Sinatra suggestion sure beats my nightmare:  

Yellen crooning Morrissey's "The More You Ignore Me, the Dove-ier I Get", a freshly-picked gladioli bouquet clenched between her teeth . . .

Pooper Popper's picture

Good thing its close to the 4th,,,,

I think my Fucking head is going to explode!

When will this BULLSHIT end????????????????

CPL's picture

Just takes a big storm.

DeadFred's picture

No better time than the 4th for a false flag (or maybe even a real) attack. Any bets on where it will happen? I have dibs on ChiTown.

NOTaREALmerican's picture

It "ends" when somebody big doesn't get paid.  

CPL's picture

Gold and silver slipped into the print then were jammed lower and rallied for the rest of the day. Copper continues to surge in CCFD unwinds...

Not good news...stay off the coast line.

PlusTic's picture

the vix and selling anything are the new buggywhips...

NOTaREALmerican's picture

Ahhhh,   VIXxxxx.    I love VIX.  

fonzannoon's picture

i'm a little disappointed that we are still waiting for Nasdaq 5k but it looks like that will be our labor day weekend gift

thismarketisrigged's picture

that long fonz, labor day?


all we need is a couple of 50 plus days which happens reguarly now, and since we know the nasdaq or any index can not finish red, all other days we may see only 15-20 pt gains, but it all adds up.


id say first week of august, but labor day at latest as u said

Baby Eating Dingo22's picture

Even on the shortened trading day, they had to pump the close

Happy 4th to the believers of the greatest con in mankind's history

orangegeek's picture

always good to listen to MSM in prep for doing the opposite


this bullshit is incredible - GDP miss was a blip according to these fluff girls

Baby Eating Dingo22's picture

Who needs hard cold facts when hope, fantasy, denial and sleight of hand can make the world fabulously wealthy and have each of us looking like Brad Pitt with a foot long shlong?


IANAE's picture

POTUS not once but twice cited jobs stats that are the highest "since 1999"... wonder if he'll have a presser and state largest drop in equities since FOREVER when the time comes.

mogul rider's picture

markets have been up for 5 years

zero hedge been short  for 5 years


9 people commenting here


makes sense why

razorthin's picture

May you be margined long to the gills and wearing cement shoes when...

disabledvet's picture

"You're fired. Wall Street. Thank you have a nice day."

Just saying. The only way Dortmund in that world is to be on the long side as that's where the juicy "big money deals" reside. No surprise that the media is all on board this as they have a lot of deals they want to swing too.

It is amazing the market goes up "as if it can be just spoken higher" but these things have happened before (Netscape being a textbook example.)

Lots of ammo for a short squeeze here and the best place for a speculative blowoff top are the "little guys."

Pheonyte's picture

OK Cypher, keep enjoying the taste of that digital steak.

EHM's picture

Absolute blowout winner

razorthin's picture

Yup.  Buy!, buy!, buy!, you fucking anmeisac idiots.

Yen Cross's picture

     I'll go out on a limb here and say the markets are going to get "bitch slapped"next week before going into earnings.

  Ohh by the way, did all those GBP longs catch that services PMI miss last night? (75% of the U.K. eCONomy is services)

  Germany is cracking, and Draghi has chewed through all his fingernails, and is starting on his toenails... He looks like a fucking albino orangutan trying to find his banana during his press briefings.

buzzsaw99's picture

bank earnings have been a hoot for the past half dozen quarters. i cringed all through 2006 and 2007 when they announced the squid's earnings because they were so bloated you just knew someone was getting screwed (all of us as it turns out). now i just marvel at how much blood they can all squeeze out of that (loan loss reserve) turnip and no-one seems to care.

Squid Viscous's picture

how come bonds never seem to "buy it" but then stocks NEVER FUCKING GO DOWN??

Yen Cross's picture

  Third party intermediaries (caugh... caugh) Euroclear <> Belgium work wonders for laundering bond uptake and drawdowns.

  Here's what's going to happen folks. Invisible inflation(Fed. adjusted) Re; energy and commodity costs will drive people into desperation.

OldPhart's picture

Dow at $17K!!  Time to party like it's 1929!!

1stepcloser's picture

Hmm. like Captain Edward J. Smith telling the titanic's engine room to goto 110% of the titanic's reactor, We need more speed!  Just imagine it!

BobTheSlob's picture

Scotty: "Captain, the engines cannae take much more of this,"

BobTheSlob's picture


401K of Dooom's picture

Just wait!  Watch what happens when the FSA starts to march up north along I-95 and the Merritt Parkway.  All of those bedroom communities will become minature copies of Mogadishu, Somalia after that.  That is why I am getting my emergency Bug Out Service Systems consultency ready to make a lot of money.  Have you ever been to Westport Connecticut?  There are a lot of wealthy, famous people living there. 

The worst trader's picture

It won't matter,they all have bunkers in Vermont .

MeelionDollerBogus's picture

You greatly over-estimate the ability of lazy legs to carry 250-400 pound body-frames...

Yen Cross's picture

    I wonder when the "Islamic State of Iraq and the Levant" swift .gov takeover manual is going to hit AMZN (Amazon)?

  It's sure to be a "best seller."

Bemused Observer's picture

I just had a thought...has anyone been able to take any significant money OUT of the markets recently?

Not the big guys, I mean smaller investors. Like, if you needed to get a couple grand out for something, is it easy? Or do you run into walls of resistance, fees, wait times, someone talking you out of it, etc?

Because it occurred to me that it would be a lot easier to keep an inflated market up if you could block access to the fire doors.

MeelionDollerBogus's picture

baaa-aaa-aaa humbug!

We can always trust the farmer to leave the gate open for us to graze.

He always makes sure we're safe!

TabakLover's picture

Bot SPY calls at Monday's open........  Holiday weeks never down.  Sold calls and puts at the close today......  got a feeling we are at the top of the first hill on the rollercaster.  

Mark123's picture

why does anyone still play the "markets"??

wall street used to be a place for a business to raise capital when they could not finance from their savings and the banks thought it too risky

now, it is just a casino masquerading as a market....and the casino has access to UNLIMITED credit - you can't play and win against someone with unlimited credit....they will just keep raising their bets until they take all your savings and then some.

NoDecaf's picture






EndOfDayExit's picture

Easy money day. If employment comes out below expectations, it means more FED QE, hence stocks would be up. If it comes out above expectations, stock will be up because "recovery, bitchez"! :) It has become beyond pathetic.

The worst trader's picture

When the POTUS is all in,the market will never go down.period end of subject. Um till he goes short?

MeelionDollerBogus's picture

medium-term trend more than 2 weeks less than 1 year: 224.20 = HVU 1/9.9 x SPY

last 2 weeks: 218.5 = HVU 1/9.9 x SPY

projections on 218.5 curve:

spy=190, hvu = 3.99

spy=170, hvu = 12

spy=150, hvu = 41.43

HVU last closed 2.62/share (tsx)

Wouldn't want to miss the fireworks on this one. Even if one were to limit cost to just what you'd have for a not-too-insane option contract (vxx call, spy put, whatever), say, $400 or less, one could probably still get 140 HVU shares for the same price & they don't expire like options do.