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Someone Forget To Tell The VIX-Slamming Machines That The Market Is Shut

Tyler Durden's picture


As American investors sit back in their chairs, watching parades, sipping Budweiser elegantly, and generally having a good day off... there are some 'people' that are working hard to ensure the status quo is sustained. In order to maintain the illusion of exuberance and lack of concern, we are used to the ubiquitous melt-up in stocks late on a Friday afternoon (always driven by an 'odd' collapse in VIX). Of course, no human would be silly enough to do that on a day when European stocks tumbled on banking contagion concerns and the fact that stock markets around the world are now totally closed... so -  we ask in all incredulity - WTF is going with VIX futures...


The July VIX Futures - which do not mature for another 10 days - have collapsed...


And it's not some fat finger thin volume trade - it is massive algorithmic idiocy...


Someone tell the machines to take the day off

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Fri, 07/04/2014 - 15:27 | 4925151 International Jew
International Jew's picture

My day just actually got much better.

Fri, 07/04/2014 - 15:28 | 4925156 RockyRacoon
RockyRacoon's picture

Somebody else's didn't.

Fri, 07/04/2014 - 15:34 | 4925168 International Jew
International Jew's picture

Now comes the temptation.


btw watch this video on dianetics. its on some jews channel, but who cares, don't have to pay 25 bucks for it.

and fuck u if u don't - fuckin muppet


Fri, 07/04/2014 - 17:22 | 4925474 flacon
flacon's picture

S&P 3000 by Monday afternoon? ...and 10,000 by next Friday?

Fri, 07/04/2014 - 19:30 | 4925712 El Oregonian
El Oregonian's picture

VIX = Void If Xternalized

Fri, 07/04/2014 - 15:48 | 4925213 Sudden Debt
Sudden Debt's picture



Like that will help.
So for all the retards over there who put money back into the banks....

Fri, 07/04/2014 - 15:39 | 4925186 Buck Johnson
Buck Johnson's picture

Our whole economy is fake and when it implodes we will be done.

Fri, 07/04/2014 - 15:28 | 4925153 RockyRacoon
RockyRacoon's picture

Somebody forgot to turn out the lights when they left on Thursday...

Fri, 07/04/2014 - 16:10 | 4925281 bonin006
bonin006's picture

On hearing "I'm sorry Dave, I can't let you do that", And noticing multiple red laser spots on his body, he decided to just leave everything on.

Fri, 07/04/2014 - 16:41 | 4925361 RockyRacoon
RockyRacoon's picture

Are you hinting that there was coercion by the algos?  Could be.

Fri, 07/04/2014 - 16:42 | 4925366 DeadFred
DeadFred's picture

Nah, there's something deeper going on here. Wish I knew what though. Monday will be a different game I think.

Fri, 07/04/2014 - 21:52 | 4925909 tom a taxpayer
tom a taxpayer's picture

Premature ejaculation: the VIX fixers shot load fantasizing about breaking the S&P 2000 cherry on Monday.

Fri, 07/04/2014 - 15:29 | 4925159 godzila
godzila's picture

un freaking believable !

Fri, 07/04/2014 - 15:35 | 4925176 International Jew
International Jew's picture

actually is unbelievable...  kinda of.

Fri, 07/04/2014 - 15:42 | 4925193 Cthonic
Cthonic's picture

Slough, England

Fri, 07/04/2014 - 15:43 | 4925198 lasvegaspersona
lasvegaspersona's picture

This can't be right.

A 5 handle?....unpossible!

Fri, 07/04/2014 - 15:47 | 4925210 SHEEPFUKKER

Perhaps negative VIX is coming, it's how things roll here on Planet Earth. 

Fri, 07/04/2014 - 17:53 | 4925552 Alea Iactaest
Fri, 07/04/2014 - 18:38 | 4925632 Mentaliusanything
Mentaliusanything's picture

That's some pretty Fucked up shit right there.

Impossible - even for a rigged market, so someone(many) are going to have their faces ripped clean off !!!                    this needs to be "manually" corrected and ASAP

Fri, 07/04/2014 - 15:44 | 4925202 orangegeek
orangegeek's picture

yellen, is that you????

Fri, 07/04/2014 - 15:47 | 4925203 put_peter
put_peter's picture

The whole friggin paradox of this global 'TPTB system' is that once the the 'system' releases people from their 'duties' it allows people to use their brains and realise the insanity of the 'system'.

Fri, 07/04/2014 - 15:47 | 4925209 luna_man
luna_man's picture



Just in case you and me should get our hopes up for monday.


As long as the CRIMINALS contol it, expect it

Fri, 07/04/2014 - 15:50 | 4925223 DavidC
DavidC's picture

It's a big POMO on Monday, $2.50 - $3.25 billion.


Fri, 07/04/2014 - 15:54 | 4925235 orangegeek
orangegeek's picture

actually, algos will be trading on Sat and Sun - SURPRISE!!!!!!!!!!!

Fri, 07/04/2014 - 15:56 | 4925240 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Is this possible? I mean did VIX actually trade today?

Fri, 07/04/2014 - 17:27 | 4925480 optimator
optimator's picture

I wouldn't be surprised if the algos and markets were open for the 1% to trade on their inside information 24/7.

Fri, 07/04/2014 - 15:59 | 4925248 potato
potato's picture

This is hilarious. I hope they go broke.

Fri, 07/04/2014 - 16:05 | 4925265 potato
potato's picture

Somebody who trades Vol, please tell us, do all VIX contracts tend to zero towards expiration? I mean, on expiration day, VIX futures must be very low just as in options the time value erodes the value of the option.

Fri, 07/04/2014 - 16:08 | 4925273 RaceToTheBottom
RaceToTheBottom's picture

Machines don't need time off...

A market of machines, for machines

Fri, 07/04/2014 - 16:28 | 4925336 tom a taxpayer
tom a taxpayer's picture

It's algos practicing for Monday.

Fri, 07/04/2014 - 16:40 | 4925360 Bunga Bunga
Bunga Bunga's picture

Calm down, the central planning committee just tested the dial for the August goal.

Fri, 07/04/2014 - 16:49 | 4925390 GrinandBearit
GrinandBearit's picture

So, I guess this means the S&P futures will gap up 50 handles on Monday (?)

Fri, 07/04/2014 - 16:55 | 4925405 razorthin
razorthin's picture

This just encourages me to dullen the blade on my guillotine a bit more.  I've a feeling it will turn into a neck crusher instead of a neck slicer before this is through.  Max pain.

Fri, 07/04/2014 - 17:06 | 4925446 kaa1016
kaa1016's picture

It's not just July. This goes out until November and the front 3 months have all traded over 100k contracts. Something clearly is very wrong.

Fri, 07/04/2014 - 17:21 | 4925471 luckylogger
luckylogger's picture

No kidding, that is an account buster move.....

Bet they don't break the trades though...


Fri, 07/04/2014 - 17:28 | 4925483 kaa1016
kaa1016's picture

With that kind of volume, if those trades stand, expect some pretty wild moves on Monday. If these trades aren't busted and the VIX snaps right back, whoever put these trades on is going to find themselves in a bad risk position.

Fri, 07/04/2014 - 18:12 | 4925583 Squid Viscous
Squid Viscous's picture

there is no reason for Vix, since the Shalom/Yellen put... they are not bluffing and they will crush any attempt at a stock sell-off, just add to SVXY or XIV every day... and enjoy the summer, get as much golf in as you can Obozo-style

Fri, 07/04/2014 - 17:08 | 4925449 Hongcha
Hongcha's picture

Maybe a buying op on a deep gapdown open on Monday?

Fri, 07/04/2014 - 18:10 | 4925588 Squid Viscous
Squid Viscous's picture

haa, haaaa - lol, wait fot it!!

Fri, 07/04/2014 - 17:17 | 4925466 luckylogger
luckylogger's picture

Wow, what a money maker for the shorts.......

God I wish I had had the balls to sell some short yesterday......

But of course if anything I would have bought...

All the stops hit all the longs are now out....

Alot of busted accounts for the retail guy to celebrate today.....

Some will not know they have negative accounts until sunday or monday.

Guess they are the lucky ones.....

Fri, 07/04/2014 - 17:34 | 4925502 luckylogger
luckylogger's picture

Notice the low for the sep contract was 3.15.
Somebody made a shit load of money.....
But like I said earlier... alot of retail accounts are blown out...

Fri, 07/04/2014 - 17:58 | 4925560 zipit
zipit's picture

Please elaborate on "a lot of retail accounts are blown out..."  Thks.

Fri, 07/04/2014 - 17:19 | 4925469 The Axe
The Axe's picture

WFT is could this BE??  wait   its the stock market?   WTF

Fri, 07/04/2014 - 17:30 | 4925488 The Axe
The Axe's picture

I turned on my computers    I can't find this inforamtion anywhere Tyler?

Fri, 07/04/2014 - 17:36 | 4925510 luckylogger
Fri, 07/04/2014 - 17:47 | 4925531 USAIIA
USAIIA's picture


Someone bought what someone sold, and all contract months have huge volume over many 5 minute periods.

 I think that this is the beginning of the END for HFT Algos Gone Wild ! 

Also, This event could be the straw that breaks the UP Markets back as the Futures at a 5 handle do not reflect the Actual underlying OPTIONS from Thursdays close overnight.

CBOE Volatility Index (VIX) Futures


March 26, 2004


The CBOE Volatility Index is based on real-time prices of options on the S&P 500 Index, listed on the Chicago Board Options Exchange (Symbol: SPX), and is designed to reflect investors' consensus view of future (30-day) expected stock market volatility.


The contract multiplier for each VIX futures contract is $1000.


Fri, 07/04/2014 - 17:51 | 4925545 TonyStewart14
TonyStewart14's picture

CBOE was closed today.  Where did these trades happen?

Fri, 07/04/2014 - 18:08 | 4925581 godzila
godzila's picture

My question, exactly.

Fri, 07/04/2014 - 18:14 | 4925597 Squid Viscous
Squid Viscous's picture

it the Vix falls (again) in the forest, but nobody can trade it, did it really happen? 

Fri, 07/04/2014 - 18:04 | 4925570 hugovanderbubble
hugovanderbubble's picture




Fri, 07/04/2014 - 18:10 | 4925585 hugovanderbubble
hugovanderbubble's picture

Seems to be Credit Suisse and Barclays, playing algos

Fri, 07/04/2014 - 18:11 | 4925591 hugovanderbubble
hugovanderbubble's picture


Fri, 07/04/2014 - 18:15 | 4925599 Fix It Again Timmy
Fix It Again Timmy's picture

Machines Gone Wild ....HOrny VIX party...VIX party machines....Hot VIX secret fantasies....Folks, it can get even more bizzare than this before the bottom drops out...

Fri, 07/04/2014 - 20:07 | 4925779 Aussiekiwi
Aussiekiwi's picture

Not to worry, it will be fixed next week, everything is under control.

Fri, 07/04/2014 - 20:07 | 4925780 Youri Carma
Youri Carma's picture
My God, do you know what this means?
Fri, 07/04/2014 - 20:20 | 4925802 TonyStewart14
TonyStewart14's picture

VIX futures expire at a value equal to the spot VIX on the future's expiration date.  Why would anyone sell the first month future 50% below the spot?  Even someone trying to goose stocks would not have to take such extreme and obvious step to accomplish his goal.  This is obviously a mistake without even taking into account the CBOE was closed today so it is unclear where and how these trades occurred.   If I am wrong, this is a once in a lifetime opportunity to buy the VIX futures because the chance of the VIX going below 6 and staying there for months is highly unlikely. 

Fri, 07/04/2014 - 20:54 | 4925846 HankMoody
HankMoody's picture

FWIW, spoke to the CBOE just now via their helpline, they are claiming these were test trades and there was no actual trading that occurred today. Here's the help desk 877-226-3773

CFE Help Desk

Sat, 07/05/2014 - 00:24 | 4926041 tom a taxpayer
tom a taxpayer's picture

I'm thinking of calling the CBOE and asking if I can do test trades running the VIX up to 40 or 80.

Sat, 07/05/2014 - 01:32 | 4926099 Oh regional Indian
Oh regional Indian's picture

Great initiative Hank....probably true and probably a test.

For what though....looks like a stress test of sorts.

Fri, 07/04/2014 - 23:21 | 4926002 IANAE
IANAE's picture

They test trades...yeah, that's it...that's the ticket.


Sat, 07/05/2014 - 00:45 | 4926067 USAIIA
USAIIA's picture

TEST TRADES? which are now archived on every charting program database? THEY MUST  now BE Class ACTION SUED FOR DISEMINATING FALSE AND MANIPULATIVE INFORMATION leading to False RUMORs and meaningful potential forward market damage as well as insider manipulation of markets thru willfull actions unknown to the general public having no information of disclaimer or warning of test events publish anywhere easily accessable and obvious  NEEDLESS TO SAY I AM ROYALLY PISSED OFF AND INTENDS TO PURSUE CLAIMS AGAINST THE PERPETRATORS!

Sat, 07/05/2014 - 05:07 | 4926174 godzila
godzila's picture

Well guys (and girls) I don't see how you can trade on a closed market ? When I saw this article I called my brooker and sure enough their answer was "market is closed". So it might very well be test or otherwise bogus trades and this whole story a non event. At the very least ZH should get someone on record.

Fromt the horse mouth:

Trading in VIX futures is halted between sessions of extended trading hours on the calendar day of a holiday. The CBOE System will complete the processing of trades that are in the course of being processed by the CBOE System prior to the start of such a halt period. Since these halt periods are a regular feature for certain holiday trading sessions in VIX futures, they shall not be considered the declaration of a trading halt by the Exchange. Trades in VIX futures made during a holiday trading session will be submitted for clearing for the next Business Day

Extended tradind hours on Jul 4th: Extended 5:00 p.m. (July 3) to 10:30 a.m

Sat, 07/05/2014 - 08:17 | 4926255 Aurora13
Aurora13's picture

Is there a link between the above article and this article: 

VIX-Manipulating HFT Algo Is Booted From Dark Pool, Exposed For Whole World To See (ZH 7/1/14)
Sat, 07/05/2014 - 10:49 | 4926420 Comte d'herblay
Comte d'herblay's picture

Is this Kansas?

Sat, 07/05/2014 - 12:21 | 4926600 USAIIA
USAIIA's picture

This is a TEST ! this is a test of your CBOE/CME VIX FUTURES Ponzi . You will see your life flash before your eyes reflected in your quote screen as we use the VIX contract test numbers of 50-60% lower from the close, to readjust all Bollinger Band Algo trading systems Worldwide Lower !

Again, the CBOE assures you that this does not in anyway imply a forward price prediction or attempt to subliminally influence the market. In a few hours the CBOE website will contain the disclaimer that the Test yesterday July 4th was successful in shaking confidence in higher expected Volitility. 

That is all from your NSA and Bankster news network ...

Mon, 07/07/2014 - 04:41 | 4930967 atoast2toast
atoast2toast's picture

11.85    +0.05


lol, wrong again 

Mon, 07/07/2014 - 11:44 | 4931365 godzila
godzila's picture

yep - no follow up, just sad

Mon, 07/07/2014 - 12:27 | 4931829 atoast2toast
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20k page views has to be worth $5 for ads

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