VIX Nears 21% With Term Structure Flattest In 4 Months

Tyler Durden's picture


It seems the short-end of the volatility term structure is snapping shut on a few nickel-in-front-of-a-steamroller gatherers...

Near- vs Far-dated VIX term structure flattening significantly (lower two panes show Absolute and Relative term structure)...

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 04/10/2012 - 13:32 | 2331799 Kassandra
Kassandra's picture

Welcome back my friends, to the show that never ends...

Tue, 04/10/2012 - 13:41 | 2331843 silver500
silver500's picture

The end could come when you least expect it

Tue, 04/10/2012 - 13:52 | 2331882 CClarity
CClarity's picture

Just developing more antifragility  . . .   which will kill some banks while it makes "the system" stronger.

Tue, 04/10/2012 - 13:58 | 2331898 chunga
chunga's picture

I'm trying my best to least expect it right now.

Tue, 04/10/2012 - 14:33 | 2332036 Dr. Engali
Dr. Engali's picture

I expect the end to come on Tuesday May 10th at 7:53 am.

Tue, 04/10/2012 - 19:30 | 2333133 smiler03
smiler03's picture

I'm sorry but in the era of HFTs you'll have to be precise to the picosecond, nice approximation though.

Tue, 04/10/2012 - 13:45 | 2331853 tempo
tempo's picture

Could it be that the equity selloff is timed to push rates to record lows for tthe $70 billion Treasury auction this week so it appears to the media/public that deficits don't matter? Who is buying Treasuries. My guess is the banks who borrow from the FED at ZIRP. So the banks have a guaranteed profit which in turn allows for record increase in EPS growth kicking off the next rally to 1500. Buy the dips before the election.

Tue, 04/10/2012 - 13:48 | 2331866 SheepDog-One
SheepDog-One's picture

You go ahead and buy all you want, have fun and good luck front running the now-desperate Manical Monetizers, youll need it.

Tue, 04/10/2012 - 13:58 | 2331900 Dr. Engali
Dr. Engali's picture

Ben needs some cover to print. So the markets are giving him that cover. Gold is telling you all you need to know.

Tue, 04/10/2012 - 14:07 | 2331927 SheepDog-One
SheepDog-One's picture

Cool, you go print Ben, 'under cover' or whatever...gas will be $5.50 or so avg for election day, theyll enjoy that Im sure.

Tue, 04/10/2012 - 14:14 | 2331967 Dr. Engali
Dr. Engali's picture

They'll find some evil Iranians to blame the high price of gas on.

Tue, 04/10/2012 - 18:50 | 2333048 suckerfishzilla
suckerfishzilla's picture

Or they might blame speculators like Morgan Stanley. 

Tue, 04/10/2012 - 13:52 | 2331879 rfaze
rfaze's picture

When Super Mario said the euro crisis was 'behind us' he forgot to add "now bend over".........

Tue, 04/10/2012 - 14:20 | 2331990 5880
5880's picture

it's "freight train"

not "steam roller"


Tue, 04/10/2012 - 13:32 | 2331802 SheepDog-One
SheepDog-One's picture

Fuck you Bernank!

Tue, 04/10/2012 - 13:33 | 2331805 walküre
walküre's picture

You have to ask yourselves this question.

Do you trust any of it?

Tue, 04/10/2012 - 13:43 | 2331851 UP Forester
UP Forester's picture

Puppetshows always end.

Tue, 04/10/2012 - 13:46 | 2331860 navy62802
navy62802's picture

I think a quick look at trading volume answers that question.

Tue, 04/10/2012 - 13:34 | 2331810 Mark Carney
Mark Carney's picture

I'm too chicken to buy right now, just don't trust anyhting anymore..........



oh, hello gold nugget, come here.

Tue, 04/10/2012 - 13:46 | 2331861 Dr. Engali
Dr. Engali's picture

Ammo is up nicely on the year.

Tue, 04/10/2012 - 13:48 | 2331868 SheepDog-One
SheepDog-One's picture

Damn right it is, ammo is getting a lot more expensive.

Tue, 04/10/2012 - 14:19 | 2331989 WonderDawg
WonderDawg's picture

Lead and brass seem to be much less volatile than gold and silver, for sure.

Tue, 04/10/2012 - 13:35 | 2331817 yogibear
yogibear's picture

Watch oil and the commodities if the market starts falling. Wait for Ben Bernanke to come out and announce more QEing.  Oil and the rest of the commodities should take off.  Bernanke and the fed aim to keep Wall Street awash in liquidity.  Get out of the US dollar before Bernanke looses control with his market saves. 

Tue, 04/10/2012 - 13:45 | 2331859 Nothing To See Here
Nothing To See Here's picture

No QE annoucement coming IMO. The FED will elect to lose the stock market before losing its monopoly over money. And QE rumours would crown gold. So...

Tue, 04/10/2012 - 14:07 | 2331925 Village Smithy
Village Smithy's picture

I agree. J6P has made the connection between QE and the price of gasoline. Also starting to see that QE equals wealth transfer. Friend of mine was at the pumps last week putting in his last 20 bucks worth, guy pulls up behind him in a Benz SUV, slams the ultra premium in the tank and sets it for fill. Then gets out his iphone and calls up for another 50 shares of Apple. My friend says to himself "WTF is goin' on here?"

Tue, 04/10/2012 - 14:29 | 2332019 Frank N. Beans
Frank N. Beans's picture

the guy with the Benz needs to get his AAPL fix, cause that's what allowed him to get the Benz in the first place.  But he's asking for trouble. 

Tue, 04/10/2012 - 19:37 | 2333146 smiler03
smiler03's picture

The guy in the Benz stole it, and the credit card and the phone. He was calling the speaking clock.

Tue, 04/10/2012 - 13:37 | 2331828 Robslob
Robslob's picture

In the words of our infamous talking bear friends:
"but what does that mean?"

VIX - Steamroller - Nickles and all?!?

Tue, 04/10/2012 - 13:43 | 2331830 slewie the pi-rat
slewie the pi-rat's picture

the near term is looking more risky today.  check

little longer?  more risky, too,but not as much

ergo: spread narrows.  check

Tue, 04/10/2012 - 13:39 | 2331832 TooBearish
TooBearish's picture

Sell on TBTF crazy batstards!!!!!

Tue, 04/10/2012 - 13:47 | 2331845 SheepDog-One
SheepDog-One's picture

Leave the TBTF holding the bag....retail never showed up as they had banked on. Printing and pumping is all totaly worthless, unless theres someone dumb enough to hand it off to...and again retail did not show up to the FED's little print and pump party. Too bad so sad.

Tue, 04/10/2012 - 13:42 | 2331847 Dr. Engali
Dr. Engali's picture

For cripes sake Ben print....print pleaaaaassseeee print!

Tue, 04/10/2012 - 13:45 | 2331854 ZeroPower
ZeroPower's picture

Flat term structure in vol - finally good for you VXX TVIX etc junkies. Backwardation = even better.

Tue, 04/10/2012 - 22:28 | 2333435 bluebare
bluebare's picture

Happy, happy.  Can I have a closer look at that flag? 

Tue, 04/10/2012 - 13:50 | 2331869 Dr. Engali
Dr. Engali's picture

It's times like this when I miss Robo

Tue, 04/10/2012 - 13:52 | 2331881 drink or die
drink or die's picture

I was just wondering what happened to him.

Tue, 04/10/2012 - 13:53 | 2331886 Dr. Engali
Dr. Engali's picture

He was ejected with a couple other trolls for some reason. It's too bad I liked our resident trolls. It was funny watching people get their panties in a bind.

Tue, 04/10/2012 - 14:23 | 2331999 WonderDawg
WonderDawg's picture

I miss Trav. When I saw a gold or silver headline, I'd make a pot of coffee and enjoy the Trav/Tmo/akak show. It's gotten kind of boring without him.

Tue, 04/10/2012 - 14:26 | 2332014 Dr. Engali
Dr. Engali's picture

Yeah that was always a good one. Kicking out the trolls took away some of the personality.

Tue, 04/10/2012 - 14:34 | 2332044 Spastica Rex
Spastica Rex's picture

Can't the trolls just reincarnate themselves?

Tue, 04/10/2012 - 19:44 | 2333153 smiler03
Tue, 04/10/2012 - 20:25 | 2333250 Tsunami Wave
Tsunami Wave's picture

So that's what happened to Robot Trader, Trav7777? I'll miss those guys.. I'll miss Robo's ridiculous comments like leaders/CEOs/other people being "knee-deep in hookers and booze", and trav's not quite racist but still racist posts. The trolls we have now are just dumb.

Tue, 04/10/2012 - 13:58 | 2331904 OldPhart
Tue, 04/10/2012 - 14:09 | 2331936 SheepDog-One
SheepDog-One's picture

'After its now obvious to anyone except total fukwits that the market is nothing but a manipulated broken abortion...the avg investor wont touch any of the garbage with a 10 foot pole'....oh well I warned them long ago about killing the goose that lays the golden eggs.

Tue, 04/10/2012 - 14:12 | 2331955 walküre
walküre's picture

CNBC needs to step it up. Their viewers aren't buying the dips anymore. Read the comment section. Could be that the CNBC commenters have educated themselves on ZH?

Tue, 04/10/2012 - 13:59 | 2331906 TradingJoe
TradingJoe's picture

Muchachos! There will be one more "bounce"(sarc), after which the "real-correction"(another sarc) will take place, eh!

Tue, 04/10/2012 - 14:10 | 2331938 Hedgetard55
Hedgetard55's picture

Help us, Obi Wan Bernanke.




Help us, Obi Wan Bernanke.

Tue, 04/10/2012 - 14:54 | 2332156 Jake88
Jake88's picture


Do NOT follow this link or you will be banned from the site!