Last-Minute Algo-Driven VIX-Crash Lifts Dow Green For 8th Straight Day

Tyler Durden's picture

It was a cliffhanger today... 8 straight up days for the Dow... or a DOWN DAY!!!


The answer... simple - a VIX-crushing algo did the job...


Smashing VIX to its lowest close since Jul 30, 2015...down for the 6th straight day...




On the lowest volume day for SPY since Christmas Eve 2015...


As Nasdaq ave back most of yesterday's M&A exuberance....


Some context for what is happening... off the Brexit lows...


But gold and Bonds are still leading the way post-Brexit...


Treasury yields fell on the day with the long-end outperforming (more curve flattening)...


The USD index rose notably today (and JPY strengthened)... (biggest jump in DXY since Brexit)


Pushing DXY above 97.00 and its 200-day moving-average - back to 4-month highs...


Commodities were very mixed with Crude tumbling in USD strength, gold ignoring it and copper loving it...


Pushing crude to 2-month lows...


It's probably nothing...


Definitely nothing... (thanks to ECB corporate bond buying)


Also, probably nothing...


Charts: Bloomberg

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Kaiser Sousa's picture


not only did we get a repeat of yesterdays obviously contrived “trading” pattern on the
Dow Jones Propaganda Index and S&PISS, but once again in the last 2 hours of “trading” the captains of the “S.S. FRAUD” ordered an “up periscope” on the DJPI-

to insure their would be no losses on another day of “record’erer” highs on ABSOLUTELY NO VOLUME AND NO JUSTIFYING POSITIVE MACRO-ECONOMIC NEWS OR DATA WHATSOFUCKINGEVER… i mean how pathetic is that fucking chart???? it only took them 14 pumps to get it to stay in the green today - that’s all!!!!

and what would a day on Scum St. be without the stampede into the DJPI to take out the earlier intraday highs????? yeah - truly genuine “trading” right there for sure…

oh yeah, and what shit stawk from the Fed & Exchange Stabilization Fund favorite rotation was used to prop up the DJPI AGAIN today???? recall the list….

1) Caterpillar
2) United Health
3) Nike
4) Microsoft
5) United Technologies
6) Verizon
7) Home Depot
8) Visa
9) American Express
10) WalMart
11) MCDonalds….

and notice where MicroShit who led the charge yesterday found itself today - at the very bottom???? makes perfect sense don’t it???
actually NO IT DOESNT & get the fuck outta here with this bullshit…

and what would a day on Scum St. be without the stampede into the DJPI to take out the earlier intraday highs????? yeah - truly genuine “trading” right there for sure!!!
get the fuck outta here with this bullshit…

oh, and as for the phony paper markets of the only 2 forms of REAL MONEY - what a complete fucking farce…but thanks for the continued discounts u central & bullion bank assholes…


froze25's picture

Yes death to the money changers.

You think oil can stay under 45? Seems to touch it then back to 50 then back to 45 lately.

Looks like the Yen is sticking around 106, so that is all they got from that injection. Things seem to be accelerating.

skinwalker's picture

By the time oil hits 100 bucks a barrel again, it won't be priced in dollars.

Say What Again's picture

I was watching $VIX and VXX at the end of the day today.  Its interesting to note that $VIX moved before VXX.  Now, $VIX is a COMPUTED index based the price of ES Index OPTIONS. 

So, to "slam" the $VIX, one has to start buying ES options in size.  I have no doubt that some large players are Arb'ing the options / ES, but this still requires a LARGE account to achieve the end result.

Care to comment on what consortium is involved in this activity.  Recall that the Fed is NOT supposed to touch any of the assets I've just mentioned.

Nid's picture

Well, the Fed technically doesn't "touch" the contracts. Just as Bernanke told Congress. "technically, we don't 'print' the money...we simply press a button..."

CryptBrain's picture

YOu really need someone to answer this question for you?  I mean you made it so far...  are you stuck?  Only a bit more to go.  Come on! I got faith in you brotha.  just a bit more to go

Say What Again's picture

Google "The Socratic method"

Cthonic's picture

"one has to start buying ES options in size."

Specifically, out-of-the-money monthly or weekly SPX puts or calls, of either the current term (24 -30 days to expiration) or the next term (30-37 days).  And, to be pendantic about it, the player throwing their weight around could be a seller (reducing the ask) or buyer (increasing the bid) at every relevant strike, point being to drive down the bid ask spread of each.  To game the formula a little more, the manipulator could place buy orders for options even further out of the money that previously had zero bids (forcing their inclusion in the calculation).

Kaiser Sousa's picture

who knows...

every fucking market is a farce.


spastic_colon's picture

so you agree that the 2016 market high will coincide with the fed meeting/dem convention/world is saved date of 7/28/2016? its so ironical.

johngaltfla's picture

I guess that got bored fucking gold long positions over and decided to start ratfucking the VIX 25 Call options with a Sept expiry....

slaughterer's picture

Market internals weakened despite the ramp. Things are turnign over--slowly but surely.  

Citizen_x's picture

The vix is not helping.

Keltner's Chan's beloved rut...a few daily
topping tails . ES flat hour chart. Dow futes
only green candle. Weaker...maybe...
Still asleep maybe..

The vix gang-rape at 14:20 was criminal.
It must be the cheapest way to hold the
index's static.

brada1013567's picture

Vix is easiest to manipulate but you don't always get a lot of bang for your buck
July futures were slammed

Since they roll off soon slamming them makes sense

monopoly's picture

Enjoy your posts Kaiser, some day you will post some real market data. Wish I knew when that will be.

maskone909's picture

That was the most blatant manipulation ive ever fucking seen, aside from the gold and silver markets WTF!?!?

spastic_colon's picture

dunno i think we've seen some pretty blatant maybe from 2009 until today.

thismarketisrigged's picture

so the streak of days in a row where the futures opened up green in the morning was ended today at 15 days in a row.


however, dow futures are now postive at some point during the ''trading ''day for 16 days in a row, and its so ridiculious at this point how they will ensure a green close on the dow doing whatever it takes.


even today when europe was down half a percent , u.s futures were flat and the entire day was a snoozefest.


it seems the new plan for central banks is to grind higher day by day and pump individuial stawks so ppl dont notice as much.


when will the vix hit 0 is the question?

hxc's picture

When the VIX hits 0 i'm getting rich as fuck the next day

Rainman's picture

not shocking news...Amazon, eBay and Alibaba selling counterfeit stuff

skinwalker's picture

Everyone knows that. I bought some guinea pigs the other day and they turned out to be hamsters.

U4 eee aaa's picture

I've done that. I ordered the guinea pigs and they weren't even pigs. Just these hairy rats. I was so mad....

Traderone's picture

WOW, just WOW, even i don't mind admitting that the last minute ramp was breathtaking. They,ve even managed to get the ES green after hours with the Delta rising by 20,000 in 5 mins, scary.

Update: would ya look at that, the futures closed down a whole 5 ticks after they ramped it 24 ticks in the last hour, somebody's head needs to roll for this. 

Squid Viscous's picture

yours...and don't think you're safe in mick land ya fookin shanty fook

TheRideNeverEnds's picture

Up a quarter percent is the new unchanged and unchanged is the new down day in the 'market'.  


"The market closed sharply unchanged today as 'investors' wait for news of more QE."

Citizen_x's picture

Ok..I'll ask the stupid question.

What a "sharply unchanged" ?

Hohum's picture

Rises in the stock market beyond GDP are simply a transfer from labor to capital.  Mission Accomplished!

N0TaREALmerican's picture
N0TaREALmerican (not verified) Hohum Jul 19, 2016 3:19 PM

That class warfare rhetoric won't work in Merica, where we have such high social mobility.

(Huh,  haven't heard that one for awhile.   How times change...)

vote_libertarian_party's picture

So MSFT TTM ADJUSTED p/e was already 41.  Then added some more ADJUSTED fantasy profits and the stock rockets higher.



Vlad the Inhaler's picture

Saw that ramp coming a mile away.

snakehead's picture

Somebody should go to prison for this. More than one somebody.

snakehead's picture

Why stop there. The counterfeiters at the Fed, too.

The Bell Rang's picture

Should drop just a bit in the morning, just saying....

MrButtoMcFarty's picture

VIX likes to bounce off that 12 handle like a Scores stripper in the VIP room....just saying...

MrButtoMcFarty's picture

I also think we'll see XAU at 1300 before we see 1400.

BWTF do I know...


Steeley's picture

Kinda makes you wonder just how much more debt you can pump into this balloon..

But then, human nature will accept infinite risk when faced with the choice of certain death. Once you accept that as the baseline there is no downside.

(Ain't desperation fun to watch, in a twisted sort of way?)

billhilly's picture

Obama to Yellen....

"we're gonna need a bigger balloon"

jharry's picture

Be thankful for the positive market.  It keeps us safe, clothed, and fed. 

CarpetShag's picture

It's one of those hot money long stop flushes 

highwaytoserfdom's picture


Mitt Romney and Club theft Bernake debt.... Non- builders

FED crimes private profit public debt.

criminal using markets for crony capital not new Romney's father was in the game with car company   IBM MSFT are monipolies..

optimator's picture

And GE is up for the fourteenth day in a row, count 'em.

Never saw that before.

Thanks Janet.

Tom Green Swedish's picture

What does this all mean?  Jackshit!

jubber's picture

monster rally now new ATH's everywhere