VIX Crashes To A 9 Handle - Lowest Level Since Feb 2007

Tyler Durden's picture

Amid the 'calmest' market for the S&P 500 since 1964... 


Traders are shedding protection at a record clip. For the third time in the last week, VIX just traded with a 9 handle - down to 9.73 - the lowest since Feb 2007...


The last two trading days have seen some 'odd' shifts in the equity-vol correlation regime though...


And judging by the collapse in realized vol, VIX could have further to fall...

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SloMoe's picture

So happy WWIII hasn't started yet?

Raffie's picture

Need to take a 2nd mortgage in cash an max out all my credit cards and toss it into the Stawk Mockets.


Now to do the Everything is Fine dance to celebrate.

FrozenGoodz's picture

Nothing to fear as long as admin gets nothing done

Raffie's picture

I can see it now, this time in 2018.

VIX HITS -100  and the crowd goes wild.

Haus-Targaryen's picture


That VIX candle chart only goes back like a week.  

hedgeless_horseman's picture

What is the con?  The con is that economic growth is both good and real.  It is most often neither.  The long con is nominal returns versus real returns. 
What keeps the con going?  Apart from greed?

Money printing.  

Please, understand that if the amount of money in a closed system doubles, the value of each monetary unit halves, and the price of everything, including stocks, increases 100%

I Want to Believe's picture

How confident are you that we're in a closed system?

hedgeless_horseman's picture


It matters not for my purposes.  

What can we learn by looking at a carnival, a casino, and the stock market as simple-closed systems?

Sometimes we simplify things to help us to understand them.

However, I am fairly confident that the global financial system is, in fact, a closed system, at least until Krugman's alien invasion.  

I Want to Believe's picture

I believe it matters for most, you are exceptionally well prepared.

I do believe it matters for many others. That said, the global financial system has been behaving more like an open system in recent years.

The current debt bubble really accelerated in the 80's under Reagan. The same Reagan that refused complete nuclear disarmament with the soviets because he wouldn't let his space weapon program wait a few years.

Is it possible that this debt bubble was ramped up (along with fraud, missing trillions from DoD and pentagon) due to covert space programs?

We would no longer be in a closed loop system, which explains quite a few oddities. If we had the ability to mine asteroids or we were closer to that type of technology than we think, that could explain certain commodity prices. Asteroids would be a new supply of precious metals, rare earth metals, etc.

Snaffew's picture

if that is true, then the PM's should be surging, but they aren't and mining etfs are approaching all time lows.

Fullmetal Anarchist's picture

While at a glance, it would appear that doubling the money supply halves the value of each unit, this is actually entirely incorrect. The value of everything, including money, is entirely subjective, meaning it is much more complex than that simple math. Small amounts of money printing can cause runaway price inflation if the people using it lose faith and try to get out of said currency. If people don't understand the con, it can be dragged out much longer with value slowly seeping from the currency.

hedgeless_horseman's picture


Big Brother loves you and will protect your investments, at least nominally.  

God help us when those trillions of USD return to the USA.


Snaffew's picture

I', not...I believe the only thing that can change this globally broken system is horrible as it will be, it's the one event that will necessitate change.

Max Damage's picture

Janet must be proud!!!

chicken_goose's picture

I've never seen anything like it. Despite our continual joking here on ZH of "BTFD" and all that, I honestly do believe that this will end incredibly badly for the markets - CBs think they can control it but when the panic selling starts this time it will be like a domino effect due to the mass complacency and leveraging that has taken place.

Phat Stax's picture

That's been said for years.  The plates are still spinning.

slobbermut's picture

Maybe....but when is the real problem - maybe these CBs, including the Swiss, plan on keeping this up in perpetuity....they pretty much print money out of thin air and dump it into the market, not allowing even the slightest of traditional corrections, even with China in serious trouble and oil dropping like a rock.

Osmium's picture

That's why CB's around the world have set a goal to own the entire markets.  Won't be any panic selling then.

Hongcha's picture

The indices are preternaturally flat.

SPY 0.00 %

DIA 0.03 %

NAS 0.03 %


How can a price index of any sort numbering 4 or 5 digit range simply not budge in either direction when 100's of thousands of bids/asks from 1000's of sources are hitting 10,000 different constituent price points at beyond- lightening speed? 

Someone explain to me it's not manipulated, that the fix is not in all down the line ...

I'll sooner belivee Building 7 fell on its own.


tnorth's picture

I got stung by VIX last year for a couple of hundred; I'll never touch them again

ArthurDaley-OldieTimeTrader's picture


No need to trade the VIX just need to know that the "BIGLY" move is coming. HDGE might be a place to have some money in the "Stawk Mochet"

tnorth's picture

yeah, lesson learned last year. Combination of assuming VIX 'cannot' go any lower, and trading platform rip off means that I am back to trading what I am familiar with again. Paper PM's are manipulated for sure, but at least they're predictably manipulated 

Snaffew's picture

a couple hundred thousand?  Otherwise---a $200 loss is a second to second trade.

LawsofPhysics's picture

LOL!!! People are still playing the VIX?  I prefer slots if I am simply going to piss money away in the casino.

Countrybunkererd's picture

just push the button.  It is more fun too.  All the nice "money music sounds" and the shiny car on the spinning platform!  No need to think much.

Dr. Engali's picture

We have entered a new golden centrally planned era where everyone is guaranteed gains with no volatility or risk. Just play with Janet's rules and everything will be right as rain

yogibear's picture

Exactly. A CB rigged market. The Fed's fantasy land is reality.

Snaffew's picture

but don't invest in gold or PM stocks because the Fed wants them artificially down as they redline the printing press and keep adding trillions in the debasement of currency.  Down is up in the equity markets.

Countrybunkererd's picture

Calm before the storm.  I know a lot of middle classers who are having a really really hard time.  But that is really because the middle class bracket has shifted and they aren't middle class anymore.  Prepare for a standard of living shift, it cannot be stopped.

yogibear's picture

It's the plan, to make the VIX drop to 0.

LawsofPhysics's picture

Yep, all fiat will follow!!!

Vlad the Inhaler's picture

Just traders unloading French election hedges, meanwhile VVIX is up 3% and front month future is up .5%

Zeej's picture

look at AAPL up 2% on the VIX crushing. 

Algos and interventionists have destroyed any semblance of price discovery.

yogibear's picture

William Dudley's dreamland. No price discovery. Only Fed determined pricing. Time to get average PEs to 100 in fantasyland.

Lonesome Crow's picture

In 1964 the S&P500 ended up 9.67 or 12%!

Snaffew's picture

the S&P is up 15 percent since Nov 2nd...still don't understand why aapl, which had a YOY increase in earnings of just 7 percent and a YOY rev increase of just 5 percent is up 80 percent since the beginning of July.

Max Damage's picture

The SNB are buying the shit out of it

r3phl0x's picture

The Ancient Insiders of Omaha - and their thousands of "aww, shucks" rural capitalist groupies - finally realized they held the wrong nerd stock, and are rapidly squirting huge sticky loads of liquidated IBM shares into every AAPL orifice now too. Early reports indicate that she's taking it like a champ.

order66's picture

Can't wait for the move when that strat finally breaks. Will be enormous. Problem is, for any central bank that owns stocks (ahem SNB...ahem BOJ...) it's an easy profit atm.

mily's picture

Would love to see china deval this week and what this would do to all short vol positions 

south40_dreams's picture

Black Swans baby
Black Swans

Snaffew's picture

I've got four white swans that swim in front of my house on a small lake...thinking of spraypainting them black just to try and start something here.

FreeShitter's picture

Just buy APPL bitchez..

zzzz88's picture

one very very big financial bomb is going to explode soon. check the policy in china, it will impact the capital flow around the world

BlueHorseShoeLovesDT's picture

They should rename it the NIX

Snaffew's picture

or the DIX...that way, when they say the DIX was shredded again today, it will really make you wince.