Today's 3-Step Manipulation To S&P 2,000

The last couple of hours of today's US session were quite surreal for many cross-asset-class traders. As the following chart shows, the "need" for the S&P 500 to achieve 2,000 (and green post-FOMC) was evident in a 3-step process of manipulating VIX, USDJPY, and Gold. All they could achieve was 1,999.79 highs but not without an epic last minute VIXtermination effort...

 

Post-EU Close, stocks had started drifting lower... that will never do... So, enter "The Manipulators"

Goal: S&P 500 to 2,000

Begin...

Step 1: Sell VIX (VXX or VIX futures most liquid and/or use dark pools to hide the volume) - S&P 500 starts to rise..

but the momentum does not hold..

Unleash Step 2: Another VIX slam but throw in some JPY jiggery-pokery just to see if we can ignite the momentum  and run those 2,000 stops...

Yep - that worked... any minute now...

Oh wait, it stalled at 1,999.79...

Step 2a: Try selling gold... that should keep the rally alive...

Nope... ok... last try...

Unleash the JPY - Step 3: RUN USDJPY through 109, take out stops and that shouldbring S&P to 2,000 and beyond...

We are losing it Jim... I cannay hold it

Step 3a... dump it, dump it all - VIXtermination at the close but stocks have folded by then...

Mission Unaccomplished... close but no algo cigar today.

 

 

Charts: Bloomberg