Volmageddon Sparks 6000-Pt Swings In The Dow As Liquidity Evaporates

Full Court Press from the media today to ensure bag-holders stay in...

 

So, first things first, the total catastrophe that is the Inverse VIX ETF XIV dropped 90% in after-hours trading, triggering its termination event...

And then when it re-opened, it crashed some more before squeezing higher (remember it will be at $4.22 on Feb 20th, no matter what happens in between)...

 

And in yet another example of the market's sheer idiocy, this short-squeeze sent The Dow up 600 points...

 

VIX traded above 50 overnight before going dead, crashing, ramping, and generally being chaotic amid the large vol-of-vol ever...

 

Notably, S&P 'VIX' was the biggest mover across all the indices...

 

Asian equities were ugly overnight but played more catch-down than extended the moves..

 

European stocks extended their losses...

European 'VIX' smashed higher to the same level as US VIX today...

 

And US equity futures were a bloodbath overnight, before a panic-bid appeared from nowhere at the US equity market cash open... (NOTE that the market ramped at the open of Japanese markets as Abe and Kuroda spoke reassuringly and at the US open)

 

 

 

Quite a day...

 

The Dow ended up 568 points but went through some enormous point-swings intraday - from the cash close last night, Dow -1400, +1000, -600, +1100, -500, +400, -300, +600...

 

Some context, however, from Friday's close...

 

Nasdaq, S&P and Dow managed to get back into the green for 2018...

 

Nanex's Eric Scott Hunsader showed liquidity has evaporated from US equities - Liquidity rising from "Lord of the Flies" to "Banana Republic". Still ridiculous (black=today)

 

Credit markets have started to awaken...

 

But for now, FX, rates, and Commodity vol remains 'contained'...

 

After a massive loss yesterday (the most since the 2013 taper tantrum), aggregate bond and stock gains today were the best since Jan 2016...

 

Treasury yields were higher from the US equity cash close, after yields crashed notably lower overnight (but remain lower on the week)...

 

10Y ended back above 2.80% (pre-payrolls)

 

The yield curve flattened dramatically intraday...

 

The odds of a 3rd rate-hike in 2018 plunged overnight to just 10%, but rallied back, as stocks bounced, to around 46%...

 

The Dollar Index ramped back to pre-Mnuchin-Masscare levels, tagged those stops, then dumped back into the red...

 

Gold and Silver were notably lower on the day after spiking overnight, crude trod water ahead of tonight's inventory data and copper made modest gains...

 

Cryptos rallied into the hearing this morning...

 

But this chart made us think a little...

 

But then again, Bitcoin soared as VIX plunged...

Comments

Hammer823 Tue, 02/06/2018 - 16:03 Permalink

Congratulations to the new Fed Chair.  He pushed the buy button today just as well as Janet would have.

Started his day erasing a 1,000 point drop a la Election Night.

Then added 700 points to the DJIA in the final 2 hours.

Take comfort America.  Your “market” and 401k’s are safe and sound near all-time highs.

Stocks indexes aren’t even allowed to Correct without massive intervention.

new game Klassenfeind Tue, 02/06/2018 - 16:59 Permalink

if it was psi, well, some air is out. as i recall a pin prick causes the fuker to go errant and loose the whole shebang. no, cb, dippers and a general got your backside- can't fail will keep this runnin back up the everest slope.

should be no suprise with this the best gamble in ussa. and the ten, lol, the lid is already on. same deal, different trade...

In reply to by Klassenfeind

D.r. Funk Tue, 02/06/2018 - 16:04 Permalink

The crack has occurred.

=============
--- ELIMINATED ---
=============
The amount of time without a 3% drop

3% DRAWDOWN LAPSE - gone

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--- ELIMINATED ---
=============
Synthetic overly-repetitive instances of higher-high headlines

PROGRAMMED ATH PSYOP - gone

=============
--- ELIMINATED ---
=============
Not getting back 10 vix it's over

SUB 11 VIX - gone

=============
--- ELIMINATED ---
=============
Contrived 'neverending' leg started on the back of hurricane irma

FORGED ADDITIONAL LEG - gone
 

swamp Tue, 02/06/2018 - 16:04 Permalink

WASHINGTON, D.C. – Tuesday morning QAnon dropped two posts that suggest in their famous tarmac meeting, former President Bill Clinton offered to then-Attorney General Lynch the Supreme Court seat of murdered Antonin Scalia, in exchange for Lynch making sure the FBI investigation into former Secretary Hillary Clinton’s email server be stopped, exonerating Clinton of any criminal charges.

The first QAnon post was timestamped at 01:34:50, approximately 1:35 am ET on Tuesday, appearing as follows:

 

In this post, the critical line is the fourth line, in which QAnon writes: Tarmac meeting [SC/LL deal > AS 187].

Decoded, QAnon is suggesting that when Clinton met with Lynch on the tarmac, he offered her the Supreme Court seat of former Judge Antonin Scalia in return for Lynch intervening with the FBI to end their criminal investigation into Clinton’s email server, exonerating Clinton from any criminal charges.

Clinton reasoned Obama’s nomination of Judge Merrick Garland to replace Scalia would go nowhere with Republicans in the Senate wanting to reserve the nomination for the next president. With Scalia’s seat still open, Hillary as president could nominate Lynch.

Keltner Channel Surf Tue, 02/06/2018 - 16:04 Permalink

“The Brownian-Motion”   from   “The Loco-Motion”     by  Little Eva/Grand Funk Railroad
   
The market’s been doin' a familiar dance now
(Come on baby, do the Brownian-Motion)
Investors really hate it, ‘cause they don’t have a chance now
(Come on baby, do the Brownian-Motion)

Never seen both longs and shorts get squeezed
As fibi lines get shredded like they are Swiss cheese
So, come on, come on, and do the Brownian-Motion with me:

You've got to smash that VIX now  (Ooooh)
Come on (Come on)  Spike up (Spike up)  Pull back (Pull back)
Oh yeah, I think you've got the knack !   (Woah, woah)

Now that you can do it, well let’s buy the Trains now
But check your emotion when you lose your gains now
Algos find it easy ‘cause they’re in control
Saving most the volume till the market close
So, come on, come on, and do the Brownian-Motion with me

{insert wacked out guitar run, or sax solo in the Little Eva original}

Churn around, then soar in a Brownian-Motion       (Come on baby, do the Brownian-Motion)
Break the Bollinger bands if’n you get the notion   (Come on baby, do the Brownian-Motion)
There’s never been a trade that’s less easy to do
We’re in the weirdest market since ‘52

So, come on, come on, and do the Brownian-Motion with me . . .

Peak Finance Tue, 02/06/2018 - 16:04 Permalink

I want to take a moment to thank my two investment advisors, Broccoli man, and 330 Ramp Capital, for a tremendous job today

 

I *SWEAR* I never doubted you guys for a second! 

Rick Cerone Tue, 02/06/2018 - 16:05 Permalink

Dow 50,000.

Elite want a ROI, without true value, markets, and fundamentals.

I hope Trump taps our natural crude and gas reserves to fill the empty gaps.

Kaiser Sousa Tue, 02/06/2018 - 16:06 Permalink

nothing shows that US indexes are models of genuinely free “markets” and investor driven activity like todays 600 point reversal  beginning PRECISELY in the last hour of “trading” in New Dork…

i lost count at around fifty of the 100 plus point reversals on the Dow Jones Propaganda Index that occurred not in minutes, but IN SECONDS…

markets??

hilarious.

DEATH TO THE MONEYCHANGERS.