The S&P Has Closed At New Record Highs 37 Times In 2017, The Most In 20 Years

Tyler Durden's picture

In a testament to the "buy the dip" mentality, or rather only remaining investing strategy in quasi-nationalized capital markets, BofA reports that the S&P 500 has closed at a new record high 37 times so far during 2017, the most in the Q1 to Q3 period since 1997, when the S&P closed at a new record 40 times before the start of Q4 (the most occurred in 1995 when there were 61 record closes).

Additionally, 2017 still has the potential to top ’97 (40 records) as four trading days still remain in Q3, and judging by today's strong rebound we just may go for 38 by end of day. As BofA's Benjamin Bowler writes, "this high number of record closes further depicts how US stocks have continuously grinded higher as investors continue to buy every dip and keep volatility suppressed."

It's not just the cash market however: another record was just observed in the VIX, which as we reported over the weekend, just saw the lowest September level on record.

As BofA notes, despite NK, storms, and the Fed, the VIX has remained unusually low in Sep Shrugging off rising geopolitical tension with North Korea, several destructive storms, and the Fed’s plan to normalize its balance sheet, the VIX remained heavily subdued during September, defying seasonal trends. The average VIX close in September month-to-date is currently 10.60, which is the lowest average September on record. 

What’s more, the 10.60 average close is actually lower than the minimum levels seen in any prior September (before this year, the lowest min was 11.10 in Sep-95).

Perhaps even more notable is the Sep-17 VIX settlement, which was 9.87. This is the lowest monthly settlement on record and only the second sub-10 monthly settlement (the other was in Feb-07 when the VIX settlement was 9.95). Even more striking, monthly settlements are typically high in September as the average settlement during September since 2004 is 19.69, the fifth highest relative to other months.

PUtting the VIX performance in context, comparing 2017 monthly VIX settlements to historical norms, this month’s 9.87 print was the farthest below the mean.

The question, naturally, is how much longer can central banks keep volatility suppressed to such record-breaking levels?

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mjcarr51's picture

On that news, this market is finished.

BennyBoy's picture

 

BTFD has worked.

Now waiting for suckers to BTFT. Buy The Fucking Top.

Traderone's picture

It's finished as far as day trading is concerned. Buy a dip and walkaway has been my mantra for 3 months. I say this after being a daytrader for 8 yrs. 

tropicthunder's picture

Yet the wall of worry grows larger as each day goes by. Not a bull to be found in site..

Sky flyer's picture

What can stop it from going higher? Seriously, what in the fuck does it take for a 3% one day drop?

Barney08's picture

What does it take ? A return to the normal. Until then Stop the madness!

El Hosel's picture

Need to see some huge redemptions from institutions ..... They haven't been given permission to sell yet

 

LawsofPhysics's picture

Yes, yes, more "all time highs" with "full employment" and yet the fuckers in banking and finance still have access to essentially FREE MONEY !!!!

Better raise those rates Mr. Yellen!!!!!!!!

"Full Faith  and Credit"!!!!

tick tock motherfuckers.

Pollygotacracker's picture

It might go a bit higher, but it's pretty much run its course. Buy low...sell high.

Bryan's picture

Let's go for an even 40 and call it done.

 

moorewasthebestbond's picture

Mainstreet suffers while Wall Street and the SEC gets hookers, blow, and fluffers.

mily's picture

Still few months left, could be a record...

khakuda's picture

What else would you expect when central banks have spent the last decade riding to the rescue of every 1% decline?

Muppet's picture

To the moon.  Gotta go up.   Can't have all that stimulus evaporate, leaving only debt obligations.

El Hosel's picture

Yeah, and the volume goes down as "the market" goes up. That used to be real Bearish, leading to corrections and shit.

RIG it like you mean it Bitchez.

 

Conax's picture

It's a perpetual wealth machine! The gears are greased, the golden goose's egg passage is greased up, the presses are lubed and wired to 460!

What could go wrong?

Party on, Garth!