And Now, The Commodity Snapback

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Thu, 05/12/2011 - 13:47 | 1268583 hugovanderbubble
hugovanderbubble's picture

They need to keep the market up till next friday...


DXY index failing to maintain its breach above the 50dmva has SPX trading at the highs of the day currently, reversing an earlier 75bp retreat. Internal flows better to buy with sellers concentrating on high short interest names, High beta and 1q outperformers. YtD laggards are outperforming the broader tape today at the expense of YtD outperformers. Utilities, Staples & Discretionary leading, suggesting the risk-on trade continues to be out of vogue, albeit copper and crude having made a valiant comeback from this mornings lows. Hf's are back buying/covering today with LOs net sellers.

Retailing: TGT, KSS outperforming along with household product names. SYY seeing HF buying as commodity costs ease.

Energy: Volumes 15% above the norm, we have seen LO's unloading refiners.

Financials: cont to underperform on global growth & sovereign risk concerns.

Healthcare: Seeing modest profit taking in pharma post DRG index wrestling with 52wk highs. Seeing buying of AET on HMO weakness.

Materials: Short covering in the sector as copper rebounds, fertiliser remains under pressure following yda's WADE data.

Tech: Outperforming despite CSCO woes, SOX putting in a good performance following strength in Taiwan tech names overnight. Chatter around of supply chain shortages. TSM supply chain in the green (NVDA, BRCM, QCOM, MRVL, AVGO, ADI, ALTR). Cisco being viewed at Co specific.

source and special thanks to:Citi


Thu, 05/12/2011 - 14:13 | 1268698 Fiat2Zero
Fiat2Zero's picture

Why is Friday so important per se?  So we can close out the week with the USD #winning?

Thu, 05/12/2011 - 14:14 | 1268718 Sudden Debt
Sudden Debt's picture

Happy hour nationwide.


Thu, 05/12/2011 - 14:19 | 1268728 Oracle of Kypseli
Oracle of Kypseli's picture

Commodity smack down can happen tomorrow, (Friday the 13th) to appear as though, the politicians made it happen by grilling the oil CEO's. Kabuki theater of course. BUT..... it will be a practical joke on us.


Thu, 05/12/2011 - 14:28 | 1268791 Fiat2Zero
Fiat2Zero's picture

Black Friday.  Fucking brilliant!  Can I work the mouth of the Bernanke sock puppet?

Thu, 05/12/2011 - 14:29 | 1268803 Quinvarius
Quinvarius's picture

I think they know they did enough damage with the CME margin changes and dollar prop job.  There is no doubt in my mind they are now giving emergency loans out to the hedgies and banks they blew up to avoid counter party risk issues.  They learned very quickly that you cannot isolate and target liquidity one market.

Thu, 05/12/2011 - 14:59 | 1268934 Fiat2Zero
Fiat2Zero's picture

Blowback Bitchez!

Thu, 05/12/2011 - 23:00 | 1270628 rocker
rocker's picture

Emergency loans. LMAO.  They will monetize all their loses.

Thu, 05/12/2011 - 14:29 | 1268806 slewie the pi-rat
slewie the pi-rat's picture

comedic commodity smack down

kabuki the 13th


Thu, 05/12/2011 - 18:07 | 1269794 Harr Tuttle
Harr Tuttle's picture

Please, keep the sale going, the truck isn't fully loaded yet. Crush it tomorrow, I dare ya!

Thu, 05/12/2011 - 14:25 | 1268777 Hugh G Rection
Hugh G Rection's picture

0 leverage bitchezzz.


Quit putting it on sale when I'm passed out pricks.

Thu, 05/12/2011 - 13:48 | 1268590 PaperBear
PaperBear's picture


Thu, 05/12/2011 - 13:55 | 1268622 Cruel Aid
Cruel Aid's picture

By that you must mean you BTFD.

There is the Granny indicator (Buy SLV @ peak) and the Financial Talking Head indicator (Dollar gonna Rally).

Thu, 05/12/2011 - 13:47 | 1268597 mayhem_korner
mayhem_korner's picture

I'm making a market on margin hikes.

Thu, 05/12/2011 - 13:58 | 1268652 augie
augie's picture

I've been playing a game since tuesday. If there is a margin hike, I smoke an L. I've been high since tuesday.

Thu, 05/12/2011 - 14:09 | 1268685 kushmere
kushmere's picture

I hope you got a big stash. Tommy Chong probably couldn't keep the pace of this game.

Thu, 05/12/2011 - 14:14 | 1268717 Cognitive Dissonance
Cognitive Dissonance's picture


Funniest excuse to get high I've ever heard. Where I come from waking up is the only excuse you ever need. :>)

Thu, 05/12/2011 - 14:41 | 1268853 augie
augie's picture

That is absolutely terrifying.

Thu, 05/12/2011 - 14:48 | 1268907 Global Hunter
Global Hunter's picture

That's all I need, I'm in, off for a walk in the woods shortly

Thu, 05/12/2011 - 16:45 | 1269461 Strider52
Strider52's picture

Global, you're a bit of alright! All you need is some beers in a backpack, a happy dog, and make sure you bring water for the dog. I take my Golden Retriever out hiking in the woods all the time, did it last night. next month: Big Sur!!

Fri, 05/13/2011 - 01:40 | 1270894 MisterMousePotato
MisterMousePotato's picture

I know you can't judge a book by its cover, but really, that does, in fact, look unhealthy.

Thu, 05/12/2011 - 15:02 | 1268965 baby_BLYTHE
baby_BLYTHE's picture

that is some beautiful looking bud.

the only silver I ever unloaded was in a trade for half-bag Aurora Indica.

Stuff floors me for hours :-)

Thu, 05/12/2011 - 15:26 | 1269072 augie
augie's picture

that is a true underground economy. silver for herb, lol the pirates heart lives on.

Thu, 05/12/2011 - 15:27 | 1269079 DavidPierre
DavidPierre's picture


Like they say...

You can't smoke it!


Thu, 05/12/2011 - 15:54 | 1269226 fockewulf190
fockewulf190's picture

Reckon the trade in the near future is going to be 1 oz. cheeba for 1 oz. silba.

Thu, 05/12/2011 - 15:27 | 1269080 Cognitive Dissonance
Cognitive Dissonance's picture

It actually looks like an alien plant monster out of the original "Star Trek".

It appears to be holding so much THC that it's high on itself. :>)

Thu, 05/12/2011 - 15:38 | 1269125 DavidPierre
DavidPierre's picture

So good you can just put your nose up close to your monitor and...

'scratch and sniff'

The local growers here about have taken to using bears as guards.



Thu, 05/12/2011 - 18:13 | 1269816 Harr Tuttle
Harr Tuttle's picture

First the silver bears,
Now the weed bears

Thu, 05/12/2011 - 14:22 | 1268753 onesoul
onesoul's picture

You might need some grass!

Silver has been holding just below 35.5 since 1:40pm to 2:10pm, now moving down. I guess some desks are front running on some rule change already.

Or that simply they will need to pump and dump intraday to create condition for margin hike.

Thu, 05/12/2011 - 14:43 | 1268873 Hugh G Rection
Hugh G Rection's picture

My mother hiked my margins once.... Once

Thu, 05/12/2011 - 15:05 | 1268971 augie
augie's picture

settle down francis.

Thu, 05/12/2011 - 18:22 | 1269846 Eric Cartman
Eric Cartman's picture

LOL! Best comment on this thread. 

Thu, 05/12/2011 - 13:47 | 1268598 firstdivision
firstdivision's picture

I love POMO's.

Thu, 05/12/2011 - 14:05 | 1268668 mayhem_korner
mayhem_korner's picture

Filtered or unfiltered?

Thu, 05/12/2011 - 14:21 | 1268730 Cognitive Dissonance
Cognitive Dissonance's picture

Real (Wall Street) men prefer unfiltered. :>)

I'll never forget the day decades ago when my dad and I walked into the store and he asked for a pack of Camels. The lady handed him the 'new" filtered Camel's. My dad looked at her like she had just challenged his manhood.....because in his mind she had.

Thu, 05/12/2011 - 13:51 | 1268603 PaperBear
PaperBear's picture

The rothchilds have stolen so much wealth.
How does it feel, people, to taking that wealth ?

Thu, 05/12/2011 - 13:52 | 1268608 Josh Randall
Josh Randall's picture

Slingshot B!tchez

Thu, 05/12/2011 - 13:52 | 1268609 LRC Fan
LRC Fan's picture

I'm praying for a margin hike or two me some USO putzzzz bitchezzzz

Thu, 05/12/2011 - 16:59 | 1269497 I did it by Occident
I did it by Occident's picture

Yeah, I got a few out-of-money puts which are working out nicely.  Thanks CME tards! 

Gives me more ammo on the flip side to double down on silver when it is cheap.

Thu, 05/12/2011 - 13:53 | 1268612 Triple A
Triple A's picture

rollercoasters suck, but they sure are fun when their over.


Thu, 05/12/2011 - 14:35 | 1268823 augie
augie's picture

I'm slightly less than hopeful for the rollar coaster corrolation to hold in the end.

Thu, 05/12/2011 - 13:53 | 1268615 Putty
Putty's picture

In the past 24 hours, silver spot price hit a high of 35.8975 and a low of 32.3125.  Now back to 35.32.  Crazy times.

Thu, 05/12/2011 - 14:19 | 1268725 Whalley World
Whalley World's picture

Dennis Gartman just on Business News Network (BNN) said CME was correct to raise margin limits on Silver as they did.  He knows various members and knows that they are doing their best to maintain orderly markets.

Why does anybody pay for let alone listen to this Bozo?

Thu, 05/12/2011 - 14:36 | 1268843 Bay of Pigs
Bay of Pigs's picture

I emailed that asshole years ago when he said gold would "never trade above 500 Euro's" (currently 1050). He tried to deny it, but I had the goods on him. He is a lying POS. 

He has no idea about where silver is going. Gold either.

Thu, 05/12/2011 - 15:14 | 1269026 Whalley World
Whalley World's picture


I like your style!

Thu, 05/12/2011 - 14:19 | 1268739 Sudden Debt
Sudden Debt's picture

Margin hikes work untill they don't.

I wonder how long it will take them to realize that 80's trick don't work against a global attack from the speculators :)

Like they always said: PUT AT LEAST 5% OF YOU FINANCE IN PM'S!

That is possible when you count the 100X hedged silver as real.

but if everybody takes delivery... that makes PM's to go up X100


Thu, 05/12/2011 - 14:24 | 1268749 Bam_Man
Bam_Man's picture

Another fine example of "price stability" - brought to you compliments of the Federal Reserve and Uncle Ben Shalom.

Thu, 05/12/2011 - 14:59 | 1268932 Devore
Devore's picture

Just means margins need to be hiked more.

Thu, 05/12/2011 - 14:18 | 1268618 hambone
hambone's picture

Indulge me -

Fed will finish up QE2 w/ approx. $90B flips in May and $100B in June? 

But Treasury is goin to be constrained on issuance due to debt ceiling?

What will Fed be buying up then?  Will they clean out the PD's and leave them Treasury free?  Continued buying w/ constricted supply...shouldn't that push yield down over the next couple of months? 

And then, a Debt ceiling approval plus absence of QE3 would seem to make for one hell of a snap back from potentially sub 3% 10yr in the next month to 4%+++ by July???

Is this what Gross and Rogers are implying?

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