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VIX Spikes Over 16, Biggest 2-Day Surge In 2 Months As Credit Contagion Spreads
VIX has been unable to make lower lows as stocks made higher highs in recent weeks as it appears managers protected these insane gains of the last few weeks rather than piled in - beta-chase-style - as financial media would have us believe. VIX has broken back above 16 this morning adding to its biggest 2-day surge in 2 months and suggesting notably more downside for stocks from here. We suspect credit hedgers are spilling over into the equity protection markets as bond liquidty dries up and protection costs soar.
VIX has been warning for a few weeks that all was not well with this rally...
This is the biggest 2-day spike since we started to collapse in mid-October...
Given the correlation between VIX and high yield credit, we wonder if this is a spillover hedge for HY managers as they see liquidity vanish from the bond market (and CDX protection costs get rich).
Charts: Bloomberg
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The Belgian is about to start buying through Citadel Securities.
someone should tell camera on a stick investors that. it is back up on the day.
"Belgium" has very deep pockets.
The US federal Reserve's infinite currency machine.
here come GOOG, AAPL, FB, TWTR, AMZN etc to save the day!
Downtick? What downtick.
Serious ? here.
Will someone enlighten me re: the shifting from the scam SIPC to FDIC insured sweep.
It's my understanding the evil bastids are trying to rush a bill thru putting derivatives ahead of the peeps.
This tells me collapse is very close.
TIA
21st Century bubble #3. The casino rakes chips off the felt evenly; pensions, savings, "insured deposits", 401K's/IRA's, etc.
Remember, the U.S.A. is "Of the Banks, by the Banks, for the Banks" and CONgress works for the Banks.
Another couple administrations and 10 years of nightly news and they will make people believe it is normal and patriotic to have their deposits confiscated.
link please.....
Just wiki TARP.
scroll down to sweep...effective Jan. 2, 2015
http://www.schwab.com/public/schwab/investing/accounts_products/investment/cds_money_markets/cash_solutions
Silly plump, juicy rabbits.. VIX is for yids...
Dear Mr. Putin, We Were Only Playing Hard to Get! - EU on Pipeline
Wake me up with the grid goes down.
When's the best time to buy the dip today? Willem? Mr. Buiter, any advice?
The best time to buy the dip, every single day, is when ZH posts its "world is crashing" article.
Marks the bottom every single time.
Same as any day when the market opens down ~1%, 10:30AM
Must. Get. S&P green. Before. Close
Off the lows and floating up! SURPRISE!!! /sarc
Another hedge fund killed by real liquidity.
Sorry but borrowing to create money (hedging) is still borrowing. It's a directional bet no matter how you "swing" it.
These funds are mere minnows in an Ocean of Whales. And they're always short. And they're always wrong.
Some of those debts must be quite large I would imagine.
I wish the market would sell off, but since everything propping it up is a work of fiction, reality is not an option!
If you can, visualize this: A bunch of algo monkeys sitting in a room engulfed in flames but they are focussed instead on a monitor waiting to see if the Fed uses the words "Considerable Time" or replaces that market soothing catchphrase with something else. And even then it won't matter because no matter what, it's going to be spun as good for stocks. It won't be until their malicious hearts stop beating altogether, that the levers won't be pulled to make the market go higher. The market could not even stay below the most recent all time highs of 10 trading days ago.
Again...if you are short all the time you must be long something else.
So far "that something else has been equities." Now these hedge funds/Congress are massively short debt and treasuries. This is long after interest rates have surged and prices have collapsed. I do agree...don't be long credit.
At some point however debt will be quite valuable (ten cents on the dollar?) and always remain long liquidity (oil, natural gas...maybe even some "growthiness"). We have had a huge sell off in debt that is ongoing since the Fall. (Really for over a year now after gold prices were annihilated.). I wouldn't touch anything save Treasuries until Spring however because actual prices have been falling for sometime now. Come Spring all that has been "saved" for the winter will have to be unloaded.
At a discount.
William Dudley of the NY Fed took the morning off, S&P should be green after he returns.