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Broken VIX Means "Markets Getting Scared", Group One Says

Tyler Durden's picture




 

We noted earlier the "noise" in VIX. We are starting to get a picture of what's happening... and it's not good. As Bloomberg reports, Group One Trading’s Dominic Salvino warns, inputs to the calculation are going skewy on the VIX in the past couple days because "safety parameters are set to hair triggers" and market makers are going wide more often than not. Yet another market - and The Fed's direct manipulation tool - is now entirely broken.

 

 

As Bloomberg reports,

Inputs to the calculation are going skewy on the VIX in the past couple days because "safety parameters are set to hair triggers" and market makers are going wide more often than not, Group One Trading’s Dominic Salvino said.

 

CBOE may look at the issue to see if something "more reliable" can be used: Salvino, in phone interview

 

CBOE spokeswoman didn’t immediately have comment

 

Was happening, with smaller effects before; now that weeklies are in the calculation, spikes occurring more often

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Tue, 12/16/2014 - 16:31 | 5559817 Haus-Targaryen
Haus-Targaryen's picture

I literally laughed out loud.  

Tue, 12/16/2014 - 16:42 | 5559835 hedgeless_horseman
hedgeless_horseman's picture

 

 

I am laughing out loud thinking about the fucking idiots that are tasked with somehow changing the calculation, reporting, or both, to hide the manipulation.

Once the fix is in, and things look normal, then that is when the chart should read, "Broken."

Right now the chart should say, "Warning!!!"

Tue, 12/16/2014 - 16:48 | 5559883 Divided States ...
Divided States of America's picture

Oh yeah...as if the ONLY thing broken is the VIX and that is the tell tale sign that something is wrong. What a joke.

Thats like blaming my low IQ on my father because hes an idiot.

 

Tue, 12/16/2014 - 16:52 | 5559922 nopalito
nopalito's picture

Looks like the VIX had a bad hair day.

Tue, 12/16/2014 - 17:00 | 5559947 StackShinyStuff
StackShinyStuff's picture

RAMPJOB FAIL BITCHEZ!!

Tue, 12/16/2014 - 17:12 | 5560001 Stoploss
Stoploss's picture

Eject!!! Eject!!! Eject!!!

Tue, 12/16/2014 - 17:40 | 5560057 kaiserhoff
kaiserhoff's picture

Today's range on the ruble/dollar  58---80

Hell'stheproblem?

(Not off the lows;)

Tue, 12/16/2014 - 20:10 | 5560807 RyeWhiskey
RyeWhiskey's picture

Pull !!

Tue, 12/16/2014 - 17:10 | 5559997 Bossman1967
Bossman1967's picture

that chart say FUCKED and we all knew it was coming and the metals on sale and will go lower before the skyrocket just look at 2007 and one will see what's coming and manipulation only lasts so long. I warned several clients of mine to get out and they laughed

Tue, 12/16/2014 - 16:35 | 5559836 kliguy38
kliguy38's picture

Don't worry .... we've got Nuland and Kerry on the job

Tue, 12/16/2014 - 16:37 | 5559844 Rainman
Rainman's picture

yah ... ' safety parameters ' ....that's a good one.

Tue, 12/16/2014 - 17:21 | 5560049 Bloppy
Bloppy's picture

Starting to look very 2008-y out there. Spreads on options contracts really freaking wide today.

Tue, 12/16/2014 - 16:32 | 5559825 SilverIsMoney
SilverIsMoney's picture

Just die already... good lord... zombie markets and we just keep shooting them in the stomach and chest... would someone tell Vlad to aim a little higher already jesus christ....

Tue, 12/16/2014 - 16:42 | 5559871 JBilyj
JBilyj's picture

He could ask for gold for gas and it would strike the heart of the beast, China won't let him do it yet, they want to suck up more gold with worthless dollars

Tue, 12/16/2014 - 16:44 | 5559888 Al Huxley
Al Huxley's picture

720 tons in GLD still needs to be transferred.  Maybe China will spot Russia for a few months while this all plays out.

Tue, 12/16/2014 - 20:43 | 5560921 MeelionDollerBogus
MeelionDollerBogus's picture

NEXT week on AMC's the Trading Dead...

Tue, 12/16/2014 - 16:32 | 5559826 Bryan
Bryan's picture

Time to go all in short yet?  If not, wake me up just before.

Tue, 12/16/2014 - 16:39 | 5559862 sunny
sunny's picture

DING!

Tue, 12/16/2014 - 16:33 | 5559827 EverythingEviL
EverythingEviL's picture

Fucked

Tue, 12/16/2014 - 16:33 | 5559829 Steroid
Steroid's picture

VIX over 19 is unmanagable, I mean can not be manipulated.

The market just drops like a stone!

Tue, 12/16/2014 - 16:35 | 5559832 JRobby
JRobby's picture

Scared robots

C3P0?

Tue, 12/16/2014 - 16:35 | 5559833 ebworthen
ebworthen's picture

2% swings up and down in one day, oil down 40% in weeks, and the U.S. bent on poking the Russian Bear while our troops are "fighting terrorists" in the Middle East.

The terrorists are in Wall Street and Brussels.

Tue, 12/16/2014 - 16:35 | 5559838 tarabel
tarabel's picture

 

 

I'm thinking that a test for Parkinsons's Disease is in order.

Tue, 12/16/2014 - 16:37 | 5559845 JRobby
JRobby's picture

Financial terrorists continue to be the biggest threat to mankind history has ever witnessed.

Tue, 12/16/2014 - 16:39 | 5559856 Just Take It All
Just Take It All's picture

Vix is just a trailer.  The feature presentation will begin shortly.  Please turn off cell phones.

Tue, 12/16/2014 - 16:40 | 5559867 shanearthur
shanearthur's picture

I don't understand all the charts ZH posts, but from a layman's perspective, lots of them look like earthquake Ricter charts lately.

Tue, 12/16/2014 - 16:41 | 5559870 Squid Viscous
Squid Viscous's picture

got plenty of popcorn and vodka, lets get this shit show started!!!

Tue, 12/16/2014 - 16:42 | 5559872 Bill of Rights
Bill of Rights's picture
US isolated, BRICS to get greater voting power at IMF

http://thebricspost.com/us-isolated-brics-to-get-greater-voting-power-at...

 

Tue, 12/16/2014 - 16:43 | 5559877 Bill of Rights
Bill of Rights's picture

And the Silver market looks closed...

https://www.tradingview.com/x/9LRul5h5/

 

Tue, 12/16/2014 - 16:43 | 5559878 Automatic Choke
Automatic Choke's picture

Right.  Price discovery.  20 min to closing, VIX Jan $21 calls showing an actual volatility of about 125%, but a price implied volatility of about 50%.  Right. 

Tue, 12/16/2014 - 16:52 | 5559911 angel_of_joy
angel_of_joy's picture

It started so nice and green this morning. And now is all red & rotten, 10 minutes before closing... Oh, the humanity !!! What's left of our (once) great markets ?

Tue, 12/16/2014 - 16:45 | 5559894 Fun Facts
Fun Facts's picture

Broken VIX means the syndicate is selling VIX in order to create the illusion that things are ok, as they have been doing for quite some time.

Combined with selling gold for the same reason, along with pumping the S&P full of printed money, all the warning signs have been defeated.

This is the reason I personally am worried about stumblng along into WWIII. In a functioning market, the S&P would be dumping, VIX would be soaring, gold would be considerably higher causing some politico maybe to rethink what they're going along with.

Tue, 12/16/2014 - 16:55 | 5559936 angel_of_joy
angel_of_joy's picture

Well, your wish has been answered... in the last 15 minutes or so... /s

Tue, 12/16/2014 - 16:47 | 5559902 SilverIsMoney
SilverIsMoney's picture

WOW! WE FINALLY WENT RED IN THE DOW AND S&P AND STARTED TO CRASH ONLY FOR THE LAST 15MIN STICK SAVE TO REAPPPEAR - THEY ARE DESPERATE TO CLOSE GREEN HERE! FUCK THAT AND FUCK THEM! BURN YOU MOTHERFUCKERS BURN!

Tue, 12/16/2014 - 16:53 | 5559924 Bill of Rights
Bill of Rights's picture
2014 Silver Eagle Sales Break Annual Record At Over 43 Million!

http://www.silver-phoenix500.com/article/2014-silver-eagle-sales-break-a...

Tue, 12/16/2014 - 17:00 | 5559948 Inthemix96
Inthemix96's picture

Does anything mean anything when everything youve ever believed in was a lie?

The fucking VIX?

Does that even mean anything to those who dont even know where the free money printed from thin air and given to the banks to lend out at usurious rates mean anything?

And as such is reason 106 why you money changing, nation wrecking cunts will be hanged till you are dead.

Think about it cunts.  Explain the fucker in childs English to those less fortunate than you, or less educated you money changing cunts.  I will bet right fucking here, and right now, you wont even make the scafolding.  The proles will skin you alive where you stand you cunts.

Broken VIX?  Ahem, you might have a slighty bigger prolem on your hands than outright theft you fucking thieving cunts.

And you had better start thinking about the reactions of your actions you filthy cunts.  Ying and yang and all that jazz eh?

:-)

Tue, 12/16/2014 - 17:06 | 5559979 SmallerGovNow2
SmallerGovNow2's picture

I96 rant!  Love it!  I started reading your post and thought, "that sounds like I96".  Then looked up and saw your name.  Did not recognize you in the new avatar...  cheers...

Tue, 12/16/2014 - 17:15 | 5560016 Inthemix96
Inthemix96's picture

The daughter done it SGN2.

I'm four years old apparently.  It celebrates four years of being a right fucking cunt in the thorn of the sides of those who need it most.

Still me, still mixing the cunt up, with the cunts who should be hanged till dead.

And after four years, these cunts must know we know.  Lets fucking get this started and hang the fuckers then mate.

Nothing changes otherwise.

And you know me mate, no bullshit, no lies...

;-)

Tue, 12/16/2014 - 17:30 | 5560102 lakecity55
lakecity55's picture

+100!!

Tue, 12/16/2014 - 17:00 | 5559952 The worst trader
The worst trader's picture

Scared? hell just have Kevin fire up the S&P futures and all is fixxxxxed

Tue, 12/16/2014 - 17:03 | 5559966 Chad_the_short_...
Chad_the_short_seller's picture

Jack Ruby's real name was Jack Rubenstein

Tue, 12/16/2014 - 18:00 | 5560259 BandGap
BandGap's picture

Jack Rubenstein, from Chicago, knew Richard Nixon then a representative from California.

http://jfkmurdersolved.com/nixonruby.htm

Read the letter, connect the dots. It's been a plan in the making for decades.

 

Tue, 12/16/2014 - 19:41 | 5560698 armageddon addahere
armageddon addahere's picture

LBJ and the CIA did away with JFK. I first read that phrase in 1967 believe it or not.

Tue, 12/16/2014 - 17:07 | 5559983 Fun Facts
Fun Facts's picture

One more thing to add to this thread.

The ongoing syndicate manipulation of VIX causes ALL RISK to be mispriced. It is a very, very dangerous market manipulation.

VIX is a black scholes input. This means that every single traded option and in fact every financial instrument is wildly mispriced for risk.

We are at the point of markets manipulation where if the syndicate ever loses control, we're looking at instant vaporization of the whole thing.

Tue, 12/16/2014 - 17:09 | 5559994 joego1
joego1's picture

This is Captain Yellen with a message to the trading desks. Please fasten your seat belts we are feeling a bit of VIX turbulence.

Tue, 12/16/2014 - 18:08 | 5560303 orangegeek
orangegeek's picture

my 15 minute VIX chart looks very psychedelic

Tue, 12/16/2014 - 20:11 | 5560815 Yen Cross
Yen Cross's picture

    lol> That VIX chart is bouncing around like a bipolar paranoid schizophrenic off it's meds.

  It's okay though... Moe Howard will fix it manana.

Tue, 12/16/2014 - 20:15 | 5560839 RyeWhiskey
RyeWhiskey's picture

"In aint scarinn In buyinggg!!"

Do NOT follow this link or you will be banned from the site!