WTF Just Happened?

Tyler Durden's picture

Just as VIX broke back above 15.00, The Dow and USDJPY suddenly air-pocketed seemingly out of nowhere... no news/fundamental catalyst as usual.

 

All the big banks tumbled at the same time...

 

Today's market brought to you by the word 'fragile'.

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buzzsaw99's picture

this is it! the dip i've been waiting for!!

Countrybunkererd's picture

what happens in France won't stay in france?

ParkAveFlasher's picture

One of the algos must have gotten stuck on a train.

hedgeless_horseman's picture

 

Simon Potter had to take a quick piss.

winged's picture

"WTF Just Happened?"

Well, ZH can answer it because it has the headlined article:

"Central Banks Have Bought A Record $1 Trillion In Assets In 2017"

That's WTF just happened.

Central Bankers are playing fast and loose with the market.

Ghost of PartysOver's picture

Who runs an HFT Shop out of the San Francisco Business District?

Fizzy Head's picture

Mooo moo , graze graze "huh?" Moo moo graze graze

2ndamendment's picture

Unless its Queso with those little bits of Chorizo mixed in, this dip isn't the one. 

Traderone's picture

Back to VWAP already, hope you did well,  i know I did.

economaly's picture

Is it possible to limit an order to another instrument's value?

hedgeless_horseman's picture

 

Yes. Software trading algo.

mkkby's picture

Interactive Brokers used to have a conditional order where you could do things like that.  Haven't looked in a few years though.

syzygysus's picture

Just a foreshadowing hiccup before the big blowout?

Callz d Ballz's picture

glitch in the matrix.

Ausonius's picture

Time to buy!  Sell at 3:50 P.M.!  :)

galant's picture

Read David Stockman - he's had a video up with a ring around April 21 for days.

orangegeek's picture

central banksters trying to unload their $30T in assets

 

LMFAO!!!

 

good luck ya fucking cunts!!!  that includes you too carney!!!

Reichstag Fire Dept.'s picture

US$30 Trill? ... I'll take it all! Filler killer at US$35 Trill?? ...Keep the change! ????

alangreedspank's picture

ahh, that's the "air pocket".

ZippyBananaPants's picture

Fart jokes always get the green arrows from the zerohedgers!!!

MrNoItAll's picture

Green by end of day, no worries.  Another trillion$ or two pumped into the casino ought to do the trick.  That gigantic clicking sound you hear is the CTRL-P button being repeatedly pressed in the FED building.

AR15AU's picture

Sorry guys... I just called Wadell and Reed and asked them to dump $300,000 notional from my 401k

Fake Trump's picture

Derivatives in fragile zone. 

Keltner Channel Surf's picture

Well ... it's OPEX (monthly index options expiration), so it's quite normal to see very tightly controlled sine-waving for hours, followed by sudden spikes in either direction, often quickly retraced for either late-day fireworks or, just as often, a whimper of an ending.

TNX (10-yr yield) is down about a percent, which would seem to explain financials (down the exact same %), more 'reflation' trade unwinds to end the month.  A fairly tame OPEX thus far with 2 hours to go ...

mkkby's picture

Was wondering how you're making out.  Most days seem like a real snore... like summer's come early.  Must be tough to find trades.

debtor of last resort's picture

Who hit the correlation algo app? Twice for fucks sake?

pebblewriter's picture

It was technical.  USDJPY, which has been trying to support SPX all day by bouncing off its SMA200 and threatening to complete an inverted head& shoulder pattern, failed to retake the neckline of the pattern.  When it fell back below the SMA200, the algos puked a little.  Also, there's not much overhead resistance for VIX here.  When it broke above a significant fibonacci level at 15.2, that was a sell signal for the algos.

None of this stuff would matter if USDJPY, VIX and WTI hadn't been so instrumental in driving algos for the past many moons.  Now, there's real selling pressure (who wants to be long THIS weekend!?) and they're all being driven by actual investors for a change.  Live by the algo, die by the algo.

http://pebblewriter.com/the-trouble-with-meltups/

johand inmywallet's picture

Its always technical. For once can't we have large cap plunging humans!!

pebblewriter's picture

No worries.  Trump announced a yuuuuge tax cut (again), so everything's better now.

order66's picture

Looks like someone got a leak that Treasury was going to give Exxon a sweet deal and it didn't happen. All that dumb money buying above vwap in sp futures got liquidated in low liquidity.

luckylogger's picture

Nice to see a little volitility for a change....

NDXTrader's picture

And the Dow is now down 8 points. We are headed higher, likely to around the 2500 range on the S&P, before we get a decent sell-off

small axe's picture

not to worry, un-air-pocketing now on the same no-news as original air pocket.

the farce is strong

SilvaDolla's picture

Damnit. I need to start B-ingTMF-ingD.

Seb's picture

Nothing happened. You just zoomed in too much.

waterwitch's picture

Calling Kaiser Sousa....

Madcow's picture

The Trump Admin is threatening to start enforcing securities law.

nostromo17's picture

buy calls sell underlying?

 

too easy?