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Small Caps Surge Green Year-To-Date; VIX Decoupling

Tyler Durden's picture




 

Mission Accomplished...?

Russell 2000 makes it back into the green... Trannies soar

 

But not everyone's buying it

 

Sustainable rally? Then why is everyone hedging?

 

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Fri, 10/31/2014 - 12:01 | 5398602 lasvegaspersona
lasvegaspersona's picture

Zimbabwe

Fri, 10/31/2014 - 12:05 | 5398621 slaughterer
slaughterer's picture

I will start re-shorting at ES 2060. 

Fri, 10/31/2014 - 12:09 | 5398637 ACP
ACP's picture

So, tomorrow?

Fri, 10/31/2014 - 16:20 | 5399644 monkeyshine
monkeyshine's picture

Possible H&S pattern forming on S&P chart.  It's possible "they" will drive it higher on the right shoulder to prevent its formation.

Fri, 10/31/2014 - 12:11 | 5398645 cnmcdee
cnmcdee's picture

Hmm.. Gas prices are down, Stock Market is shot up like a heroin junkie that fell in a vat, Ebola was cleaned up with a dust buster, and the Democrats are trying to get reelected.

 

Coincidence?

Fri, 10/31/2014 - 12:01 | 5398607 KnuckleDragger-X
KnuckleDragger-X's picture

Just in time for Halloween ' The death hedge from planet X" coming soon....

Fri, 10/31/2014 - 12:04 | 5398611 buzzsaw99
buzzsaw99's picture

From my laboratory in the castle east
To the master bedroom where the vampires feast
The ghouls all came from their humble abodes
To get a jolt from my electrodes...

[/monster mash]

Fri, 10/31/2014 - 12:03 | 5398614 Rainman
Rainman's picture

The S&P 2100 hats just arrived. Accepting pre-orders.

Fri, 10/31/2014 - 13:07 | 5398852 aVileRat
aVileRat's picture

Why not just recycle your old Dow 2100 hat?

The liquidity crisis is going to be epic if we get a bid to cover failure someday

 

Fri, 10/31/2014 - 12:06 | 5398624 FreeShitter
FreeShitter's picture

Elections.

Fri, 10/31/2014 - 12:07 | 5398633 oklaboy
oklaboy's picture

extra tramadol?

Fri, 10/31/2014 - 12:10 | 5398642 maskone909
maskone909's picture

iv dilaudid

Fri, 10/31/2014 - 12:10 | 5398643 JR
JR's picture

Look at what’s happening. The Bank of Japan is going to spend $108 billion buying Japanese government bonds per month.  And it’s suicide, just like in the U.S.  But the market loves it. It will be a short party. In the long run, it’s going to be the end of Japan. It’s already happening in the U.S. as the fireworks ends in a giant display of sounds and flashes.

Fri, 10/31/2014 - 12:14 | 5398647 CitizenPete
CitizenPete's picture

Sell your Barbaric Relics with both hands before they go to zero(hedge) -- the mighty FRN and Stawks are back with a vengence!  I may soon be offering cash bailouts (buyouts) to those stupid enough to have aquired physical metals. Don't bet against the FED. 

 

Oh and don't forget to vote RepubliCrate, Sheeple.

Fri, 10/31/2014 - 12:37 | 5398721 TeamDepends
TeamDepends's picture

We'll see who laughs last, won't we Pete?

Fri, 10/31/2014 - 12:13 | 5398656 cnmcdee
cnmcdee's picture

The market index are no longer a index of stock value - they are more a value of QE / Money Printing Inflation..

Fri, 10/31/2014 - 12:13 | 5398658 FieldingMellish
FieldingMellish's picture

<-- VIX buyers will get crushed today or Monday

<-- Election prop, THIS IS IT....

Fri, 10/31/2014 - 12:15 | 5398666 cnmcdee
cnmcdee's picture

Just remember WE ALL ARE PAYING FOR THE REELECTION PARTY THE DAY AFTER ELECTION.

Fri, 10/31/2014 - 13:41 | 5399013 Seal
Seal's picture

just like we the people  are paying for TARP, market highs, sellout of the US's gold and silver, ObombaCare, and 4 failed foreign wars since WW2

Fri, 10/31/2014 - 12:48 | 5398782 Pareto
Pareto's picture

+100  I love these binary opinion queries because its really the only place left that sort of reflects a free market, and almost always they come out near 50/50, though in this case it seems the VIX has established a floor to 80% of respondents......so far.

Fri, 10/31/2014 - 12:31 | 5398705 DebtSlaveZombie
DebtSlaveZombie's picture

Silver stackers... Keep stackin'.  Lol. 

Hey uhhh... Eventually the premium on silver bullion will be higher than the spot price.  That's when I'm bullish.  Lol. 

Fri, 10/31/2014 - 12:35 | 5398714 Bunga Bunga
Bunga Bunga's picture

Haloween 2007 ... when the bear market began.

Fri, 10/31/2014 - 12:35 | 5398715 Seal
Seal's picture

Looks like we should all vote Democratic as the markets soar and gas is way down! It's the party for the peeple

Fri, 10/31/2014 - 12:41 | 5398743 vote_libertaria...
vote_libertarian_party's picture

I need to buy some VIX calls pronto

Fri, 10/31/2014 - 13:33 | 5398978 StandardDeviant
StandardDeviant's picture

Fair enough - but if you're new to VIX options, be aware that they may not perform exactly the way you expect.

First, they're based on the futures contracts rather than on the value of the index itself; so a spike in the index may not be reflected (immediately) in the value of the options.

Also, they have European exercise, so even if your options do spike in value, you may not find too many willing buyers.  Think of it from your counterparty's point of view: If you're short the VIX calls when they go up, given that there's no possibility of early exercise, and that volatility tends to be mean-reverting, why would you buy them back now instead of just hanging in there till expiration day?  Liquidity may be hard to come by.

You can find more detailed discussions here and here, among other places.

Fri, 10/31/2014 - 16:19 | 5399640 monkeyshine
monkeyshine's picture

Possible H&S pattern forming on S&P chart.  It's possible "they" will drive it higher on the right shoulder to prevent its formation.

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