Stocks Stable Post-Fed Despite VIX Flash-Crash

Tyler Durden's picture




 

If history is any guide - the mysterious flash crash "signal" that we have seen yet again in VIX suggests stocks rally and VIX tumbles into the close today:

 

We have seen these spike moves before and more often than not they have signaled future extreme tests for VIX - and in this case, that means stocks ramp.

 

Keep an eye on momentum ignition around 3:30pm. That said, both credit, crude and the USD are ugly for now on the heels of the "close calling" Fed which clearly has no idea why it hiked in December, but had to hike nonetheless.

5
Your rating: None Average: 5 (1 vote)
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 01/06/2016 - 14:22 | 7005945 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

They don't look to stable to me. 

Wed, 01/06/2016 - 14:24 | 7005953 InjectTheVenom
InjectTheVenom's picture

>>>  casino

>>>  free market

Wed, 01/06/2016 - 14:26 | 7005965 froze25
froze25's picture

Its the year of the dollar, buy on the dips.

Wed, 01/06/2016 - 14:29 | 7005973 Soul Glow
Soul Glow's picture

It's the year of gold and silver.

Buy with both hands.

Wed, 01/06/2016 - 14:45 | 7006041 Save_America1st
Save_America1st's picture

that huge gap down on the chart from 17,600 to about 17,400 from Monday will most likely be filled at some point again soon.  They'll have to put the PPT into overdrive to get there, but I'm guessing they're going to do whatever it takes to get back to at least 17,800....unfortunately. 

Wed, 01/06/2016 - 14:48 | 7006070 Soul Glow
Soul Glow's picture

Not looking good for your call.....

Wed, 01/06/2016 - 15:19 | 7006242 GRDguy
GRDguy's picture

It's 3:15 EST and the U-turn is already evident.  Interesting.

Wed, 01/06/2016 - 15:35 | 7006348 Simplifiedfrisbee
Simplifiedfrisbee's picture

1200 is the technical price point for Gold. If it blows through it then 1250-1300 is next.  

Wed, 01/06/2016 - 15:42 | 7006409 Tall Tom
Tall Tom's picture

Ideally the US Dollar will die this year.

 

And so will this fraudulent financial system.

Wed, 01/06/2016 - 14:39 | 7005993 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

I know everyone of us here knows the Fed failure was contrived because they are now going to bankrupt us all. Then they will profit on the collapse big time once again. The question is have enough awoken to see it yet? Is anyone going to do anything about it?  The fact that they did this at the worst time shows, they purposely want the collapse to commence and they have all the laws, assets, and personnel in place to deal with the repercussions. 

Wed, 01/06/2016 - 14:46 | 7006051 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Stable? -290

Wed, 01/06/2016 - 14:49 | 7006073 Winston Churchill
Winston Churchill's picture

-307.

Don't look down whatever you do.

Wed, 01/06/2016 - 14:56 | 7006105 undertow1141
undertow1141's picture

-327

Wed, 01/06/2016 - 14:59 | 7006117 Takeaction2
Takeaction2's picture

Please -750

Wed, 01/06/2016 - 14:24 | 7005956 Osmium
Osmium's picture

EPIC ramp on deck for US indexes.

Wed, 01/06/2016 - 14:28 | 7005967 KnuckleDragger-X
KnuckleDragger-X's picture

It'll only be epic if they can push it green. Otherwise, it's merely a holding action while they retreat......

Wed, 01/06/2016 - 15:04 | 7006141 undertow1141
undertow1141's picture

To push this green for the day it would have to be BIBLICAL. A flash crash in reverse.

Wed, 01/06/2016 - 14:42 | 7006022 hound dog vigilante
hound dog vigilante's picture

 

Hypothetical:  an epic ramp should push VIX higher, yes?  I mean, volatility goes both directions, yes?  Otherwise the VIX is just another unilateral wager on red (as opposed to green).

'fused.

Wed, 01/06/2016 - 16:51 | 7006853 Ms No
Ms No's picture

Not necessarily.  I am no trader genius but the VIX technically guages up or down but the index is dominated by hedgers looking to buy index puts for protection from down risk.  It's more of measure of fear to the downside than greed about upside.  In most cases when the VIX goes up the S&P will go down.  It will rise at a higher rate when stocks fall than when they rise.

My understanding is that it guages the premiums that people will pay for options.  It's outward looking and implied volatility.  Some people will say when it rises BTFD but if goes really high you could be looking at a major correction too.  It may just be another tool they use to fuck with us but I think high VIX is saying that some evil in the casino has been activated so watch your ass. 

If I am wrong I'm sure some trader genius will be disgusted with my answer and feel compelled to fix it.  I am sneaky like that.  ( =

 

Wed, 01/06/2016 - 14:46 | 7006052 Winston Churchill
Winston Churchill's picture

Looks more like stawks are sliding into the abyss.

Sell Mortimer, sell !

Wed, 01/06/2016 - 14:28 | 7005960 KnuckleDragger-X
KnuckleDragger-X's picture

Simply an algo recalibrating, so move along, nothing to see here.......

Wed, 01/06/2016 - 14:29 | 7005974 xrxs
xrxs's picture

Is it 3:30 already?  Where does the time go.

Wed, 01/06/2016 - 14:31 | 7005982 ChargingHandle
ChargingHandle's picture

Do I hear circus music?

Wed, 01/06/2016 - 14:33 | 7005986 Eahudimac
Eahudimac's picture

One hour to go to 3:30. +10 on the S&P by close. 

Wed, 01/06/2016 - 14:45 | 7005996 hound dog vigilante
hound dog vigilante's picture

I thought volatility meant up & down... but apparently "volatility" (VIX) only registers when markets move downward, not upward.

Seems to me that VIX should go lower only when markets are relatively calm/flat. Sharp up & down action should push VIX higher, but this does not seem to be the case at all...

Can somebody explain this disconnect?  Otherwise I have to conclude that the VIX is just another scam.

 

Wed, 01/06/2016 - 14:36 | 7005999 Soul Glow
Soul Glow's picture

Same old tricks.  Problem wth old tricks though is the meth starts wearing on them.  They lose teeth, get diseased, and become worthless.  

That's Yellen's printing press now, an old whore doing tricks.

Wed, 01/06/2016 - 14:36 | 7006006 BeaverCream
BeaverCream's picture

Hello everyone Elon Musk here, founder of Space X.  Prepare for liftoff in approximately one hour, you're going to experience around 20gs while we travel into space.  We ask that you remove all jewelry and bullion as it will slow our ascent.  Thank you.

Wed, 01/06/2016 - 14:43 | 7006031 Crasiatic
Crasiatic's picture

-Yes, it seems that there is just an immense inefficiency in the Vix now..especially the its ETF.....where very rarely is it moving higher during any vioilent swings up AND down like it "should".....no one cares about hedging anymore guess...especially "hedge"funds

Wed, 01/06/2016 - 14:57 | 7006109 silverer
silverer's picture

It's become so confusingly complex that investors have little, make that no, real information.  So when to get out of the way of the train has become totally subjective.  Even the experts don't know when to get off the tracks.  "Stable" happens when everyone freezes.  This is gonna be good...

Wed, 01/06/2016 - 15:00 | 7006128 ghostzapper
ghostzapper's picture

1969/1970ish potential legit spot for violent bounce (and no I am not "bullish" nor do I care about labels).  1965 noted in ZH piece earlier according to someone else's view.  No guarantees but certainly won't be a shock if it plays out.

Wed, 01/06/2016 - 15:35 | 7006337 homebody
homebody's picture

How does one get on that PPT team - they must be making a killing

 

Sorry for the double negative team/team

Wed, 01/06/2016 - 15:37 | 7006361 BSHJ
BSHJ's picture

Kinda like saying JEB Bush....but then, he IS a double negative

Wed, 01/06/2016 - 15:52 | 7006462 surf@jm
surf@jm's picture

Once the plunge protection teams owns 51% of all corporate stock, I wonder what executive orders will come from Valerie Jarrett....I mean, ha ha ah, excuse me, Barack Obama then?.......

Wed, 01/06/2016 - 16:31 | 7006707 Jstanley011
Jstanley011's picture

Until the bulls make a higher high, which they have failed to do since the fall rally, no one with half a brain will be impressed.

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