Nasdaq Tops 7,000 For First Time Ever As VIX Crashes

Having passed 6,000 for the first time in April, Nasdaq has now soared 17% since then to surpass 7,000 today...

 

As soon as cash markets closed last Friday (quad witch), US equity futures spiked... then spiked again on Sunday night's open, and again at the US equity cash open this morning...

 

And VIX has been crushed this morning...

Comments

pods Mon, 12/18/2017 - 12:20 Permalink

Everything is Awesome...........................I smell a blow off top in just about anything and everything that people invest in. This is gonna be the stuff of legend.Hope to see everyone on the other side.  This is gonna leave a mark when it pops.pods

tahoebumsmith Mon, 12/18/2017 - 12:32 Permalink

Yippie yi yay their gonna pass the tax bill for the 100th time. They got a couple thousand points out of this bill that may save the middle class $150 a month so they will be able to pay the increase of $150 a month is gas taxes, food costs, cell phone bills and everything else that's going up. Wall St. knows full well Corporations will use their tax cuts to buy back stocks not hire people or give higher wages this is a total joke. The biggest tax cut in history!!! Hahaha 165 billion a year? What does 165 bill get you these days? Nuttin

kavabanga Mon, 12/18/2017 - 12:51 Permalink

With the trading year winding down here, I'm not keen to pile into a great number of trades, but there are a few underlyings that may be worth playing here if holiday frivolity just doesn't provide you with enough and/or you're just a hard core trading addict that has to put something on in order to satisfy your need for market engagement ... . BBBY announces earnngs on 12/20 (Wednesday) after market close. With an implied volatilityat the high end of its 52-week range (63-ish percent as of Friday close), it may be worth a premium-selling play. As it stands now, the Dec 29th 20.5/25.5 short strangle (~22 delta) is paying .81/contract at the mid, implying that any defined risk play (i.e., an iron condor) with that strangle as its "body" won't pay one-third the width of the wings and is therefore not worthwhile. Alternatively, the underlying is probably small enough for a short straddle, with the Dec 29th 22.5 paying 2.50 and the comparable defined risk iron fly (18.5/22.5/22.5/26.5) paying 2.08 with a max risk of 1.92/contract. For those willing to take on potential assignment risk, the Dec 29th at-the-money 22.5 pays 1.18 with a break even of 21.32 (5.5% ROC), although it may be slightly more worth it to go out to the Jan 19th expiry to take in 1.45 for the same striked short put with a break even of 20.98 (6.9% ROC) (Dec 29th implied's at 73.3% versus Jan 19th's 63.3). KRE's implied is in the top third of its range over the past 52 weeks, but I'd like the implied to be higher (26% as of Friday close; I like exchange-traded funds to be north of 35% to consider playing them). That being said, the Jan 26th 55/63 short strangle (~20 delta) is paying 1.05 at the mid with a greater than 70% probability of profit metric. As always, I've got my eye on VIX and its "little buddies," VXX  ,UVXY , and SVXY  . While I will certainly put on short setups in VXST/VIX ratio pops to >1.00, I'm not counting on anything huge happening here volatility-wise before the end of the year.UVXY, for example, has done nothing but trundle lower to repetitive all-time lows in light of a bit of risk bleeding out of the market here with tax reform passage being painted as "pretty much a sure thing" by the end of the year. Consequently, I'll probably just confine myself to putting on my weekly long put vert, at this point in VXX , since UVXY  appears doomed for a near- or sub-10 print by year-end, at which point it may become a little bit harder to work due to its size ... . 

John Law Lives Mon, 12/18/2017 - 12:53 Permalink

The "markets" have not been in rally mode since their intraday lows on February 11, 2016 because of hopes for a Trump tax bill.  They have been in rally mode because Central Banksters have created an artificial environment promoting a reckless asset purchasing frenzy.  YodaYellen is too much of an establishment CVNT to admit the Fed helped create this asset bubble, and she doesn't want the finger pointed at her when it pops (which it damn sure will).Fed_FUBAR_to_Hades  

ludwigvmises Mon, 12/18/2017 - 14:12 Permalink

Good times. Consumer confidence will go through the roof once people see the value of their 401ks. Trump has boosted American consumer spending power by astronomical sums. #2020!!!!!