VIX Crush Saves Stocks As Crude Drops, GDP Flops, & US Credit Risk Pops

Tyler Durden's picture

A slew of disappointing data (hard and soft), government shutdown fears growing, collapsing GDP expectations, and declining earnings expectations... WTI and RBOB plunging, bonds bid, and gold higher... and then there's North Korea!!

 

VIX was clubbed like a baby seal again intraday (who the fuck needs protection ahead of a possible government shutdown) in utter desperation to keep The Dow green on the day...

VIX has only closed lower than this once since February 2007!

 

While Nasdaq and Trannies rallied, Small Caps ended red and The Dow and S&P desperately clung to unch...

 

Trump's Tax Plan continues to disappoint with bonds & bullion bid still as banks and stocks weaker...

 

And the big banks are all down since Trump unveiled the tax plan...

 

Government shutdown remains a real possibility but stocks don't care (USA CDS do though jumping 3bps today)...

 

The Energy complex was big news today as machines seemed to read yesterday's DOE report and realize that OPEC is failing...

 

Treasuries were bid once again (but remain higher on the week)...

 

Some volatility in EURUSD surrounding Draghi's on-again, off-again QE chatter...

 

Left the USD Index modestly lower on the day...

 

The Peso and Loonie were once again swinging around on every headline from The White House regarding NAFTA

 

 

Bitcoin surged to record highs, overtaking gold once again...

 

Silver is down for 9 of the last 10 days to 6-week lows (below ist 100DMA) and goldis finding support at its 200DMA...

 

And finally, this...

 

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FreeShitter's picture

Yes bitcoin is higher than gold! Is this a the land of bullshit or what?

Vlad the Inhaler's picture

Might was well buy some VIX down at this level.

katchum's picture

1 kg of gold is still worth more than a bitcoin though.

Urban Roman's picture

I think I'm gonna be sick tomorrow...

(no special reason, just that woozy feeling)

Wild Swings's picture

If only the algo's would get sick

Fundies's picture

Mum used to rub VIX on my chest and back when I was a sick kid. It was a smoke and mirrors repair, like this. 

 

TheRideNeverEnds's picture

Just buy stocks you idiots. There is no way any of this plays out in any scenario you could imagine that would not be bullish for stocks.

Gov shutdown = bullish; they spend more "shutting it down" and starting it up than they do just keeping on.
No Gov shutdown = bullish; problem solved, VIX to single digits, buy em all.

GDP collapsing = bullish; lower for longer, QE infinity, but em before the banks do.
GDP same/increasing = bullish; FED saved the world, green shoots, buy everything we are going to infinity and beyond.

Earnings collapsing = bullish; transitory, noice, it will reverse soon and if not the FED will save it
Earnings increasing = bullish; 1000P/E is fair, Shiller has never been right, debt doesn't matter.

War with Korea et all = bullish; dem bombs dont come cheap, think of all that military hazard pay, Boeing/LMT fingers crossed hoping they shoot down some jets.
No war with Korea = bullish; we must buy more war machines as deterrence, peacetime spending, no worries, buy that second condo in Manhattan @500/sqft while its still on sale.

Oil and gas getting cheaper = bullish; more money in Americans pockets, discretionary spending, buy a second SUV.
Oil and gas getting more expensive = bullish; more money in oil companies pockets, buy more wells, hire more rig monkeys.

and on and on.

There is literally nothing you can possibly come up with that would be bad news for stock prices.

TradingTroll's picture

Wow. You're about to get your head handed to you.

If the US markets are so great right now:

-why did bonds get bid up during this weak Dow rally testing 21000?
-why is the Euro well up off its lows of a few month back around 1.04, now 1.08

These factors indicate current preferences for alternative products than US markets.

abenomicstimebomb's picture

Agree: shorts beware, MSM are changing the narrative now, old school earnings not Trump's policies will be the factor driving stocks up.  Don't try to fight it, stocks will bull higher, we are far from the top IMO.  There is nothing preventing stocks from moving higher here.  BTFATH and make sure to sell at the top  Sounds simple but hardest to do.  We all know how this ends, but there is room for profit on the upside from here.  

mily's picture

When I saw "this quater earnings will be lean" headlines in MSM i knew they'll be beats everywhere, old trick i.e. ford -35% drop in earnings yoy is sold as wait for it:

"Ford climbs as earnings drop not as steep as feared"

Ink Pusher's picture

Buying Silver like a madman...  Muuuuhahhahahhha !

Games Without Frontiers's picture

GDP collapsing, price to sales ratios fully extended to all time highs, jobless claims up. Stock market......up? Just because. I've noticed they've been hitting gold and silver too even though the USD index has been down to flat. Had to go grab another bar, just because. Fuck the moneychangers.