VIX Crashes To Record Low Close, Gold Win Streak Longest Since 2011, Crypto Tops $700bn

What a day...


Following the FOMC Minutes, the dollar was bid and gold was dumped... but that did not last too long...



Nasdaq roared higher once again today as did the rest of the equity market... (Dow nears 25k, Nasdaq well over 7k, S&P over 2500)




VIX was monkeyhammered to an 8 handle for only the 6th time in its history... (the close on 11/3/17 of 9.14 was the lowest in history) VXST dropped to 7.33 record lows.



Bear in mind that VIX had only traded with an 8 handle once before 2017 (on 12/27/93)


Despite a rise in March rate hike odds, treasuries at the long-end rallied (yields dropped)...




The yield curve flattened dramatically today, erasing all of yesterday's steepening...




The dollar index managed to cling to some gains, but gave back all of the post-FOMC spike...




Gold was smashed lower after the FOMC Minutes but rebounded into the green for the day...



Gold Futures are up 9 days straight today (also in 2/18/14) - has not been a longer winning streak since July 2011 (right before the USA ratings downgrade).

Silver is hovering above a key technical level...



WTI/RBOB both rallied notably today ahead of tonight's API inventory data...




Notably Copper - after its epic run - is down in 2018...




In the crypto space, Ripple screamed higher once again today, Ethereum jumped to a new record high, and LTC and BTC trod water...




As prices rises the market cap of all crypto currencies has soared above $700 billion for the first time...




So record low risk forecast (VIX), record high stock prices, record high crypto market cap, near-record win streak in gold, and record plunge in the yield curve... and this...


Hammer823 Wed, 01/03/2018 - 16:02 Permalink

Speaking of Universal Basic Income…
The largest UBI program in the world is the US Stock Market.
Tens of trillions in wealth manipulated ever higher on the daily.  The whole world “invested”.
Rally Program #1 was run today; as it was yesterday.
Take comfort and make money off the default programs that determine intraday index action.
It’s just a subroutine run on a computer.  They are the same day after day. 
After all, there’s no other choice but for stocks to keep going up, forever.  
It’s not optional.  Its required, for every Government budget, Pension, 401k, IRA, and 529 to work.
And with pensions and Social Security going the way of the Dodo, it has never been more important for stock to keep going up.  No matter what their "valuation".

Kaiser Sousa Wed, 01/03/2018 - 16:04 Permalink

well here we r into 2018 and guess what...






........('(...´...´.... ¯~/'...')


...........\.............. _.·´







"when the same bullshit happens every fucking day there’s no need to write, just cut and paste…”

- Kaiser Sousa -




TheRideNeverEnds Kaiser Sousa Wed, 01/03/2018 - 17:01 Permalink

I wonder how many more years of this it will take before ZHrs realize stocks are never again going down in any appreciable way. 


Many will probably go to their deathbed still thinking “the crash will come any day now”.  


Another bear market is literally impossible.  


The only real questions are ones such as “will we hit DOW 40,000 this year or next?” “Should I buy more Facebook or Tesla?”  “Why won’t my broker let me sell more tranches of naked short calls in the VIX?  It’s free money!” 

In reply to by Kaiser Sousa

D.r. Funk Wed, 01/03/2018 - 16:06 Permalink

shiller -- 32 -- eightynine

firmly 10 percent above black tuesday
solely representing an overstretching of price from reality
irrefutable as a tracing of an eventual peakpoint inflection reversion
SUB 11 VIX fabricated forced operation
3% DRAWDOWN LAPSE closer to reaching that point of elimination
ADDITIONAL FORGED LEG not gonna convince me [it] can go forever
PROGRAMMED ATH PSYOP ' cant go forever '

Keltner Channel Surf Wed, 01/03/2018 - 16:13 Permalink

With Yellen’s tenure quickly waning, the final tributes keep rolling in, including this one from Lou Reed/Velvet Underground, covering her early days as an economist:

“Sweet Jane(t)”       

Yellen’s on the corner, use case in her hand
Krugman’s in a straightjacket, Friedman’s in a bulletproof vest
And me?   I had an Omega watch band
Riding in an AMC Pacer, Jan, you know, those were real cool cars
Bernanke studied Volcker’s curse, while Draghi, he rolled his R’s

Sweet Janet

Now Janet, she is the Chair, and Ben’s an HFT clerk
They printed lots of money, and both claim that it worked . . .

Keltner Channel Surf Squid Viscous Wed, 01/03/2018 - 16:36 Permalink

You really came back with the X-mas spirit still burning :)

Perhaps re: his solo career, but NOT w/ the Velvets --  the 'Banana' album, plus the self-titled one and Loaded are not only undisputed classics, but still retain perhaps the most forward-reaching influence of any similar period artist, with folks ranging from R.E.M. and Joy Division to the Feelies, Stereolab and beyond, + MANY other current indie bands, being unthinkable without them. 

But, it's often the case that an artist representing a paradigm shift ends up being less well-known amongst the general populace, while still retaining their status as a 'key catalyst' with critics, so-called experts, etc.  (e.g., Sidney Bechet, The Field Mice, Felt, Television Personalities, etc.)

Happy 2018

In reply to by Squid Viscous

Keltner Channel Surf BlueHorseShoeLovesDT Wed, 01/03/2018 - 16:42 Permalink

Yes, hope you did as well, but I imagine like me you're anxious to get the 'standard' (yet still pathetically low) volume/liquidity back as folks return to the office, today's final figures were respectable, but the morning and yesterday were thin.

Turning a new leaf this year, plan on no, or very little RUT trading.

Good luck on another good trading year for you.

In reply to by BlueHorseShoeLovesDT

BlueHorseShoeLovesDT Keltner Channel Surf Wed, 01/03/2018 - 16:45 Permalink

Yes it has been a hard time to trade indexes. I have a hard time with anything that moves one way directionly, which is why I look for names to trade.


i did short S&P into the end of 2017 thought I was toast on that trade so took a day trip with my wife I looked after we finished dinner and was amazed I got out with a nice profit. What a head fake though.

In reply to by Keltner Channel Surf

Keltner Channel Surf BlueHorseShoeLovesDT Wed, 01/03/2018 - 16:55 Permalink

From my perspective things changed ~2015, making it harder for manual chart-based click-traders doing indices, likely because:  1) More extraneous players impact the day session, rather than just algos; 2) Predominant algos have shifted down to 2-min/5-min charts, and clicking manually vs. machines on periods below 15-min is often taxing (80-200 potential decisions/assessments per day vs. 5-6 for hourly charts).

So, I've decided to blend a commodity with an index:  I plan to trade the Junior Gold Miners (GDXJ) exclusively w/ 300% leverage, no problem with tight ranges on 99% of days, and a 1/4 normal position will get you twice a good TNA trade (assuming you get that damn direction correct.  Odds are 50%, right?  That's what makes trading so easy :)  )

In reply to by BlueHorseShoeLovesDT

khakuda Wed, 01/03/2018 - 16:14 Permalink

We are reminded of the Fed's incompetence upon the release of each set of meeting notes.  Nasdaq has gone parabolic, S&P spiking and yet they worry about not enough inflation, worry the market is pricing in too many rates hikes and worry that tax cuts won't do much to stimulate the economy and markets!  Wake up already.