VIX & Stocks Surge For Second Day Amid Bond Bloodbath

Tyler Durden's picture

Invaluable advice..."seriously you are not fucking listening"


Stocks surged to record-er highs early on...Small Caps were today's best performer (up over 1.5%!), 13th record close for The Dow post-Trump


On the week, Small Caps are up over 5.5% post-Italy!


Pushing the S&P 500 near cycle high P/Es...


But Casino stocks stumbled on Macau capital controls chatter...


Bank Stocks have now been 'overbought' for a record 20 days in a row...


"Most Shorted" stocks were higher once again but no kneejerk rip this time...


Aside from the continued melt-up in stocks, the most notable aspect of today's market was the second day in a row of significant VIX-S&P correlation (something that is relatively unusual)...


Record S&P 500 Call options volume... (note that the record put options volume hit on 8/21/15 almost marking the V-bottom in stocks)


Since Trump's election, the VIX curve has collapsed...


And CSFB Fear Barometer (measuring skew in options pricing) has collapsed too...


Notably bond market 'risk' is at its highest relative to stock market 'risk' (based on implied vols) almost ever...


The last time equity-bond vol was this separated was 5/21


And finally, the yield spread between stocks and bonds has now widened to over 30bps - the widest since July 2015...


*  *  *

Ok, having got that off our chest, let's look at the rest of the markets...

The ECB's comments sparked the biggest steepening in yield curves since Oct 2008...


US Treasury yields bloodbath'd higher again


The USD Index surged back to unchanged on the week thanks to EUR weakness post-Draghi...


Crude rallied back after breaking below $50 overnight, but remains lower on the week...Silver remains higher on the week (but faded today)


Finally - because it's just funny - Italian banking stocks are the best performing market in the world this week...

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thismarketisrigged's picture

of course another fucking day where goldman fucking sachs is up 2.50 pct just like every other fucking insolvent piece of shit bank in this ''market'', bc why the fuck would ''investors'' ever want to take profits.


this shit is a joke, i cant even be pissed.


no more real down days until muslim bastard barry sotero is out of office, bc we need the stupid libtard sheeple to be able to say how great muslim fuck was for ''markets'' and how trump fucked everything up.


i would fucking do anything to have this shit crash 20  plus pct in 1 day before asshole leaves, just to watch the reactions on cnbc would be priceless.

BabaLooey's picture

Hindsight is 20/20


Kaiser Sousa's picture

hey Rigged your rockin' today homie...

not a single junk yet...


thismarketisrigged's picture

i dont understand how u get downvoted for speaking the truth daily.


keep stacking dude, we will be rewarded soon

Kaiser Sousa's picture

man u know i aint trippin' off them fools...

hater's gotta hate...

epspeically those that have fallen under "the illusion of inclusion..."

remember, its a big club but they aint in it....




Clock Crasher's picture

I convinced myself (in recent years) that there is such a thing as karma in the wide broad definition.  That there was no way that Obama would be skip jumping out of office at all time highs with 95M unemployed, 45M food stamped, 30M govt parasites, AMZN +55,000% returns since inception and a derivative market 1QT.

Well.. I'd be dead wrong.

And looking like a fucking mupet trying to short it for the long haul is just delicious.

someday... in a galaxy far far away perhaps.

thismarketisrigged's picture

hopefully karma catches up to hussein before he leaves office.


i wouldnt short until inaguration week, bc no way these fucking bastard moneychangers let this crash while hussein still lives in the whitehouse

Clock Crasher's picture

I will not add another penny to anything electronic.

I will not add to another short or another goldminer. 

This game used to be kind-of rigged.

Now its totally rigged.

8 years without GDP breaking 3% and factories and labor wrecked yet Dow 19,000.

Shows that the stock market is totally fiat and a psyop for the record books.

A lot can happen in 5 weeks but like I said yesterday... a 20% crash from here would keep us above the Jan-Feb lows. 

So... even a 20% mauling will have MSM claiming Obama administration is the most awesome for USA all time.

Mtnrunnr's picture

Looking at money supply and how much of it is in the hands of the few, the DOW should be higher. We're due for much, much more craziness. Less jobs, more expensive shit we are mandated to buy, this can't last forever.

Archibald Buttle's picture

nope.  it surely cannot. +1

BandGap's picture

Well, there is an upside, for me at least.

If they keep the shitshow rolling 6 more years I will not only have substancially more Au and Ag, I might get a real, live Social Security check.

The demographics of this country, in terms of the aging population, invariably means all this will come crashing down by 2020 at the latest.

The black swan will be forcing China to float its currency, and then war.

Dirtnapper's picture

If interest rates keep rising, I can't see this lasting past Summer 2017, if that long. 

Dirtnapper's picture

What you are failing to understand is the system is mostly rigged for TPTB's agenda.  I say mostly because the TPTB would love complete control, but they can't manage to get to that level of control (one day, maybe).  What seems obvious natural rythme is not of their concern, they will do what they have to in order to achieve their agenda.  Had Hillary won, SHTF would have already happen and they would have little Barry's head on platter for his disloyalty on key issues while praising Hillary's efforts to restore the economy and the USD.  They have a huge problem, Trumpster won and is about to reverse decades of their work.  In order for them to stop Trump from doing that, they have to destroy him before he can push legislation through Congress.   That means SHTF and the MSM 24/7 coverage blaming, you guess it, Trump. This is for the big game, nothing matters after this as the world's fate will be sealed, one way or another.

BTW, I voted 3rd party and not for the Trumpster.

Traderone's picture

Kinda hard to warm to your tone without the usual caps Rigged. The 'oomph' is missing.

EdSav's picture

I completely agree. They love their bullshit stats.. He has to have some legacy. CNBC even uses the word economy interchangeably with stock market.  

Clock Crasher's picture

110% computer controlled

NoDebt's picture

I still love that BTFD cartoon.  Whoever came up with that is smarter than all of us.


BennyBoy's picture


The Bernanke was smarter than....crap, he just worked for the big banks. NY fed is in control. Yellen is an atress.

AlexCharting's picture

Gold (+8% YTD) & Silver (+22% YTD) Technical Analysis

Divergence between Gold and Gold Miners continues, with the latter refusing to close down today. Gold is the only one with MA change today, by losing 5 DMA. Still, MACD is improving, and increasing number of analysts are turning bullish on the shorter term horizon. 

GLD Datapoints: Daily (Slightly Bullish), Weekly (Bearish), Monthly (Bullish)

SLV Datapoints: Daily (Bullish), Weekly (Bullish, 100 WMA is key), Monthly (Bullish, 20 MMA is key)

PS! I trade and analyze all kinds of stuff, and the intention of these technical PM posts is to spur debates on ZH counterweighting rants and conspiracy theories.    

My biggest win today was POT calls (+110%), and most epic failure is my futile attempt to short financials XLF… those options could expire worthless by 16 Dec.

Link to my charting set-up:

Clock Crasher's picture

goldmoney stock on the USA OTC is approaching $2.00

Clock Crasher's picture

did you check out Road-to-Root-A?

AlexCharting's picture

Yeah, I read this website... think its good?

FYI, I am not like big into conspiracy theories, but I read it to counterweight MSM. I do believe in like ETs, UFOs, pizzagate, 9/11, black-ops, and stuff.

Clock Crasher's picture

that's the one.

do I think its good?  I think it is both very interesting and completely bat-shit crazy at the same time.  Things are so screwed up on many many levels (not just financial markets I am talking about culture and everything) that I do not know what to believe.

I do like to hear what the Bix Weirs and Jim Willies of the world have to say about the big picture.

Clock Crasher's picture

And all he is saying is that the derivatives are just too large to not end in total and complete failure resulting in total destruction of the monetary system as we know it.  Which is not a stretch.

Here are some of the conclusions I have come to.

  • The US total debt is 200T and the phyz cash USD is 99.5% smaller in size at 1T.  Not good.
  • Systemically important banks are a real.  Not good.
  • There is only $2.25 worth of ASE for every American minted in a year.
  • We solved a global debt problem with 8 years of ZIRP/NIRP/QE.
  • Any fiat currency that has 0% gold backing has a failure rate of 100%.
  • The techno crats want billions removed from planet earth.
AlexCharting's picture

Well, I certainly agree that few of our current policies are sustainable for the long-run. I am actually in the process of designing a new political ideology related to meritocracy. Based on the few talks we have had, I think you would like some of it, but be shocked by other stuff.... like e.g. my stance on human overpopulation, eugenics, and adoration of the Georgia Guidestones :o 

Clock Crasher's picture

I am from a megalopolis myself and am for population management (at least in overcrowded megalopoli) via the people of the world (as a whole) averaging less than 2 children per married couple arrived at through consensus among the peoples of the world (not enforced). 

1 child born per 1 couple would halve the population continuously per cycle without 1 murder.


Spigot's picture

Once the derivatives complexes begin to fail, they will be nullified due to posing a "systemic risk". Once that is crossed then the entire off put risk premia (which the derivatives schema promised would guarantee against failure) will be re-added to every exposure, plus enough to compensate for the then completely bare assed exposures on all existing commitments. IOW, interest rates will triple or more in a few days to a few weeks.

NugginFuts's picture

Volume for NUGT, GDX, etc were all extremely low today. Closing flat was like a gift...


You have more guts than I do going against financials. With half the transition team coming from banking, you can tell the new administration is gearing up for war and wants generals of all varieties. 

AlexCharting's picture

My XLF and BAC puts only account for like 0.3% of my portfolio... so, its like my mad money play :) I jumped the gun on both, since only high RSI confirmed my thesis... should have waited for actual weakness. 

mosfet's picture

Nothing to do with techinical analysis...Everything to do with human nature.  Miners are Up today cause they saw the breakout yesterday and view today's dip as a 2nd chance to get in at the bottom.  Same emotion will apply right before the Fed meeting, unless one of Janet's cronies breaks the news of no rate hike early.

EdSav's picture

mosfet.. recent USDCAD drop (ie CAD strength) has helped a bit in regards to miners.. but your group psych eval is likely accurate. If there is no rate hike, that'll certainly be something. LIBOR has basically hiked itself 16bps since Nov8th. I think they'll hike. But then muppets will ask.. yes.. but how much Miss Janet; just tell us, how awesome is everything. 

T-888's picture

tell me more about how stupid I am for still holding SRS?!

Kaiser Sousa's picture



Clock Crasher's picture

4:10pm and 2 comments?

people must be both really pissed and demoralized

edit never mind... here  they come

Traderone's picture

It takes them at least 10 mins to calm down because the Market didn't do what they told it to. 

Shyysiryxius's picture

Air is getting thinner. We must be close now

Clock Crasher's picture

I've been thinking/saying that for ....a half decade

youd be surprised how long this can go on for

1982-2000 uninterupted bull market save the 1987 crash which turned out to be a pitstop

YellenTheft's picture

Keep the patience Bears. 3-6 more months to feed the bubble and get us over Dow 20000. Then the rise in interest rates expose the naked system and we will see the biggest market crash in history.

Clock Crasher's picture

Soma! Soma! Soma! Soma!

Clock Crasher's picture

The only way this stops is when OUTSIDE forces overwhelm the NWO

I see nothing but endless flat and featureless ocean horizon

Clock Crasher's picture

DB near +100% off its lows

LawsofPhysics's picture

The (hyper)inflation trade is on bitchez.

20,000 DOW and $20 bread, let's see who "blinks" first.

Clock Crasher's picture

I'm not so sure.

I have been drinking the hyperinflation cool-aid for a long time.

I think I might change to a different flavored beverage.

mosfet's picture

DOW will easily hit 20K before January because the Fed won't be hiking in Dec.  Hyperinflation is locked up in markets and won't make it's way onto Mainstreet until either of the following conditions are met.

-Fed starts hiking regularly

-ECB ends all easing

-Fed goes negative to drive mortgage rates down to inflate an ultra massive housing bubble

Being Free's picture

Stupid should hurt.

Kaiser Sousa's picture

earlier today in response to the Douche Bank story which “shockingly” revealed as fact that which those of us who have endeavored to inform ourselves relative to modern monetary history already knew,
“Deutsche Bank Provides “Smoking Gun" Proof Of Massive Rigging And Fraud In The Silver Market"
i stated the following in response to many who believe that there will be no significant sanctions on the sociopathic bankers and their criminal institutions…

“doesn’t mattter…the point is you have been able to acquire Real Money whose VALUE is infinitely above the phony USD paper PRICE”…

this in turn prompted the following response from the petulant self proclaimed “Trader Boy Wonder” who for some reason continues to hope that he will garner direct dialogue with me here at ZH…

“You’re most likely buying your silver with USD paper money (or other currency), hence paper price matters to everyone.”

first of all, please take note of the fact he believes that there is such a thing as fiat "paper money” and that Money & Currency’s r 1 in the same…secondly, read the “Trader Boy Wonders’” remark again and take into consideration the following…

Speculator - “A person who trades derivatives, commodities, bonds, equities or currencies with a higher-than-average risk in return for a higher-than-average profit potential. Speculators take large risks, especially with respect to anticipating future PRICE movements, in the hope of making quick, large gains."

I have a friend who since 2011 ($50 USD Silver) has been crying’ like a little bitch because of what the MoneyChangers have done to the phony paper PRICES of the only 2 forms of REAL MONEY to date. He’s upset because he didn’t realize that he wasn’t stacking physical Gold & Silver for the all the RIGHT reasons but instead for all the speculative WRONG reasons consistent with “Trader Boy Wonders’” assumption that “paper price matters to everyone”…

now, all my Sound Money brethren here who been around since i came around know that I’m a Saver who SAVES in PHYSICAL Gold & Silver. consider the following...                                       

Saving - In terms of personal finance, saving generally specifies low-risk preservation of money versus investment, wherein risk is higher; in economic principle more broadly, it refers to any income not used for immediate consumption. Saving differs from savings. The former refers to the act of increasing one’s assets, whereas the latter refers to one part of one’s assets…”

As a Saver in physical Gold & Silver, one of the primary reasons for my accumulation throughout the years has been because while the phony paper prices have fluctuated (read:have been manipulated), both physical Gold & Silver have ALWAYS been superior stores of VALUE & protectors of PURCHASING POWER over time versus every other debt based fiat “currency”…

no one who has accumulated Real Money for the right reasons is concerned with the daily fucking debt coupon dollar PRICE of their Gold & Silver… we’re only concerned with how many oz’s we’re able to stack in exchange for Federal Reserve Notes b4 they loose the remaining 2% of there VALUE on their way to absolute worthlessness (all this courtesy of the Fed since 1914)…and we’re only concerned with how we’ll be monetizing our Gold & Silver in exchange for other assets on the cheap once they do what they inevitably will do when their True Value’s assert themselves…


ps: if ur pissed over this lengthy post - deal with it…

RawPawg's picture

Master Sousa Batting 1000

Always Spot On...Straight To the Point

That last paragraph alone was worth running the bases...Twice

btw...Saw my Coin Dealer Dude Today(You must ALWAYS stop in to pass Xmas Best Wishes to the ones you Love)

Walked out with a fine set of 8 each Peace Dollars(1923).

Kaiser Sousa's picture

thanks homeboy and best 2 u & urs during this holiday season...

made my monthly purchase already...

next month - same damn thang...


buzzsaw99's picture

i don't think it can possibly keep going like this more than ten or fifteen more years.