VIX Breaks Above 25 - Term Structure Inverts; Credit Signals More To Come

Tyler Durden's picture




 

Who could have seen that coming? Bob Pisani is about to get "worried" as VIX broke above 25...

August Deja Vu all over again? VIX highest since September 2015...

 

VIX term structure has inverted...

 

2016 has not been pretty...

 

Everything is lining up that way... We have seen this pattern of money flow chaos before... Outflows surge from China, send liquidity needs spiking, which bleeds over into Saudi stress (petrodollar?), causing unwinds in major equity markets (thanks to deleveraging of carry trades) in China and then US stocks...

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Thu, 01/07/2016 - 14:07 | 7012479 LawsofPhysics
LawsofPhysics's picture

Nice, what is FAZ doing...

 

Prepare to have your shorts ripped off now that ZH is talking about this.  Confirmation of the Friday rally...   ...thanks.

Thu, 01/07/2016 - 14:12 | 7012513 johnvallo
johnvallo's picture

Looks like a real soft landing for China, LOL

Thu, 01/07/2016 - 14:17 | 7012540 Flatchestynerdette
Flatchestynerdette's picture

You'd think a 300-400 point drop in the Dow is a nightmare scenario. Yet when it goes up that much its just another day at the office. As for China? They just took off the breakers so we can expect it to go to zero before the buyers come back in. Just another Friday.

Thu, 01/07/2016 - 14:18 | 7012562 knukles
knukles's picture

Bob Pissonyou will get worried when he looses his job, not before.  He has no skin in the game.

Thu, 01/07/2016 - 14:27 | 7012590 hobopants
hobopants's picture

Yep...not to piss on the parade but we have "seen this all before" along with the miraculous recovery shortly thereafter...at this point the first signs of collapse are going to be in the streets not the charts.

Thu, 01/07/2016 - 14:29 | 7012604 froze25
froze25's picture

China took off the breakers? Please explain, I thought those couldn't be taken off to protect the market from panic. Well lets see what happens. Sell Mortimer Sell.

Thu, 01/07/2016 - 14:43 | 7012744 two hoots
two hoots's picture

Already getting bored with these meager 100-300 point drops. 

Thu, 01/07/2016 - 14:58 | 7012852 Vlad the Inhaler
Vlad the Inhaler's picture

When stocks got down to around -3 or 4% there was panic selling by people afraid they would be frozen up at 7%.  This basically caused an avalanche whereas without the fear of breakers people might have held out waiting for the rally.  Since the initial Monday action was most likely front running the Friday lifting of the shareholder selling ban, which has since been pushed out, they are hoping things will stabilize.  But the damage may already be done.

Thu, 01/07/2016 - 14:13 | 7012522 Soul Glow
Soul Glow's picture

I haven't heard anyone worried about stocks.  Manerino thinks stocks go higher all year, Jim WIllie said the first Chinese implosion didn't worry him, you are bullish, Hitlery has some tourette tick that makes him type "+400" everyday.  All the commentors on this sight are bullish, Wall Street is ALWAYS bullish (it's their job).

I guess I am one of the few bears.  

Thu, 01/07/2016 - 14:30 | 7012654 Gambit
Gambit's picture

Lmaooooo! I died on the Hitlery +400 comment.  Although I dont agree with him on some of the shit he says. I gotta give him major recoginition on his ability to roll wonderfully on CNN Money. 

Thu, 01/07/2016 - 14:14 | 7012532 shantyman
shantyman's picture

No baby....tomorrow every Chin on the continent will be dumping their options which have been frozen...followed by every banana vendor...I will take the under on when they freeze their market...gonna be a whole new picture of the Chinese Fire Drill...

Thu, 01/07/2016 - 14:17 | 7012552 LawsofPhysics
LawsofPhysics's picture

I'll be the contrarian here.  The oligarchs have been global for quite some time and all the CBs are colluding still.  Even more so, the "average" Chin, much like the average 'merican, will eat their government cheese and shut the fuck up.  Not playing with much, but a buyer now, if but temporary.

Thu, 01/07/2016 - 14:19 | 7012572 Soul Glow
Soul Glow's picture

Ghawar is running dry and the cost structure of getting oil out of it due to leveraged debt money is extremely high.  You should be the first to understand what that means.

Thu, 01/07/2016 - 14:34 | 7012621 LawsofPhysics
LawsofPhysics's picture

I do, but we have a "glut" remember?  We are still importing 7+ billion barrels per day.  That is a lot of consumable calories that can be used to get shit done.  Same thing happened before WWII, Korea, Vietnam...  Just saw that the USAF is quadrupling their drone pilots.  They no longer need to be educated officiers either!!!   Remember uneducated people tend not to have much of a moral or ethical barometer.

Prepare, recognizing that war is good for some businesses and the Chinese leadership has never had a problem with sacrafice.

Thu, 01/07/2016 - 14:08 | 7012491 FreeShitter
FreeShitter's picture

Pissani squeals like a bitch when he smells fear

Thu, 01/07/2016 - 14:10 | 7012505 NotApplicable
NotApplicable's picture

"The important thing to remember here is..."

Thu, 01/07/2016 - 14:13 | 7012525 kw2012
kw2012's picture

Pissani smells himself then

Thu, 01/07/2016 - 14:39 | 7012714 Bilderberg Member
Bilderberg Member's picture

"Art Cashin just signalled the desk, there's ten trillion dollars worth of shares to sell at the close." 

Thu, 01/07/2016 - 14:09 | 7012498 mtndds
mtndds's picture

3:30 pm market ramp up.  Watch for it.

Thu, 01/07/2016 - 14:14 | 7012527 gatorengineer
gatorengineer's picture

not today.  Wouldnt be surprised to see the circuit breakers kick in.... this PM is going to get ugly.  The PPT tried and died today.  tomorrow might rally on a shitty jobs number.

Thu, 01/07/2016 - 14:24 | 7012603 Pareto
Pareto's picture

The DOW is just off the Fib retracement.  Will probably close on the FIB thenbounce tomorrow.

Thu, 01/07/2016 - 14:37 | 7012704 Yen Cross
Yen Cross's picture

Naw... bad news is bad news again.

Thu, 01/07/2016 - 15:16 | 7012956 gatorengineer
gatorengineer's picture

Unless their goal is to break China, then bad news will be well good news for Stawks.  The PPT's effort today was half hearted at best.  and it was predictable that the market could fold after europe closed.  China is spending a shitload of walmart bucks buying their market.  I dont think they can build up a military and keep up the markets....  they will have to pick one.  I think that is the US's angle.....

The US Stawk market has got to be prime for a short face melting rip, on a bad jobs number......

Thu, 01/07/2016 - 14:17 | 7012536 Soul Glow
Soul Glow's picture

And so NASDAQ goes from down 3% to down 2%.  And the same thing happens again tomorrow.  And soon the index is down 20 %, but at least the PPT slowed the rollover.

What gentlemen!  So everyone could have gotten out of stocks in October and November when the markets bounced, unfortunately their brokers were saying to stay in the market because stocks could never go down.  "Don't fight the Fed!"

Thu, 01/07/2016 - 14:27 | 7012616 Yen Cross
Yen Cross's picture

 The fed. is rapidly losing credibility. As LoP so succinctly stated yesterday, any additional easing will just exacerbate the problem, unless they do it Belgium style.

 It still won't work, because liquidity isn't the problem.

  It's lack of demand and hidden inflation via taxation, regulations, mandates, demographics, devaluation, mis-appropriation, over ~capacity, ect...

Thu, 01/07/2016 - 14:29 | 7012646 LawsofPhysics
LawsofPhysics's picture

Yen.  Still connected to many military friends.  See my comment above, just got this information about a week ago.

Prepare, and God bless.

Thu, 01/07/2016 - 14:32 | 7012660 Yen Cross
Yen Cross's picture

 Thank You. A good honest Man you are.

Thu, 01/07/2016 - 14:32 | 7012662 LawsofPhysics
Thu, 01/07/2016 - 14:51 | 7012710 Yen Cross
Yen Cross's picture

Thanks.

 I've read some articles about enlisted drone operators having drug and alcohol problems over the "Won-Ton" use of drones to kill people.

I've also seen some articles, that discussed the sadistic comments some drone operators make.

  [complete lack of respect for human life]

 I guess they're looking for the scourge of the Earth, to do their deeds. I wonder if they VET their assassins in Super Max prisons?

Thu, 01/07/2016 - 14:17 | 7012555 Truther
Truther's picture

Obama:"I put this country in the toilet. Elect Hillary and she will do the flush."

 

Thu, 01/07/2016 - 14:15 | 7012538 lehmen_sisters
lehmen_sisters's picture

"When in doubt...VIX it out"  --Janet

Thu, 01/07/2016 - 14:21 | 7012588 Yen Cross
Yen Cross's picture

 

25.144.55 (22.10%)
Thu, 01/07/2016 - 14:22 | 7012589 Pareto
Pareto's picture

Bob Pisani is a dip shit pisant.  Thinks he can explain away everything - but, knows fuck all.  the guys on the floor of the NYSE must really wish he'd go away, like "Hey Bob, which way is the wind blowing?".  "Looks to me like its blowing from the north, why?"  "Why don't you fuck off with it."

Thu, 01/07/2016 - 14:34 | 7012683 BadLibertarian
BadLibertarian's picture

Thank goodness the Fed bravely got us that quarter point of breathing room we'll need to handle this crisis.

/s

Thu, 01/07/2016 - 16:17 | 7013337 Bopper09
Bopper09's picture

I've never had the adjective 'bravely' make me laugh so fucking hard.  I think it's also possible Janet brought us this

http://www.marketwatch.com/story/untreatable-form-of-gonorrhea-may-show-up-in-the-us-2015-12-30

Thu, 01/07/2016 - 14:37 | 7012696 Early Retirement
Early Retirement's picture

Funny how when David Tepper got out it was at the top of the market, eh?. What would an uber-Fed-connected Jew who pays himself a $2 billion/year salary from QE know about the market?

Thu, 01/07/2016 - 14:42 | 7012736 The Longest Call
The Longest Call's picture

Bout time...  Puts long expired now

Thu, 01/07/2016 - 14:54 | 7012819 I AM SULLY
I AM SULLY's picture

THIS IS JUST A BLIP!

(no worries)

https://www.youtube.com/watch?v=VlVmdGiAH2A

Thu, 01/07/2016 - 14:54 | 7012826 allamerican
allamerican's picture

i heard Pizza Boy pizani this am..  "im calling CBOE find out whats going on".  1 large double chesse asshole..

Thu, 01/07/2016 - 15:02 | 7012869 Yen Cross
Yen Cross's picture

 I predict CNBS ratings going through the roof... For all the wrong reasons. ;-)

Thu, 01/07/2016 - 15:04 | 7012881 RobertE
RobertE's picture

Never catch a falling knife. That's always worked for me...

Thu, 01/07/2016 - 16:04 | 7013231 Temporalist
Temporalist's picture

I am disappointed with all the vitriol here directed at poor Bob Pisani.  Don't forget, there is Steve Liesman to direct plenty of that as well.  Shame ZHers.

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