Build In Oil Inventories Leads To Plunge In... Gold

Tyler Durden's picture

Exhibit A in Efficient Market Theory. A few minutes ago the DOE released its crude oil inventory data for the Week of March 25. With Crude inventories expected to decline from 2,131K to 1,500K (you know the whole economic improvement thing and what not), instead we got a build to 2,945K, with Cushing surging from 177K to 1,689K. What would one expect should get killed on this data? Oil right? Yet below we get a glimpse of what mega leveraged and ultra trigger finger happy correlation desks trade like these days.

So let's get this straight: a surge in crude, which implicitly means the economy is slowing down as everyone realizes, and which means the Fed will likely have to step in again soon, is bearish for gold?

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SheepDog-One's picture

Pass me some more crazy pills, if enough are swallowed, maybe we can come full circle to sanity land.

Cdad's picture

Nope Dog,

You'll arrive at a unicorn ranch...which can be fun.

As for gold plunging as a proxy for oil, while another Apple analyst commits credibility suicide upgrading the thing as margins collapse faster than the supply chain, causing the stock to fall as the NASDAQ rises [even though Apple is 25% of that index], while casual diners rise despite massive off loading of shares...which is curious...ummm....

Yeah, give me some more pills too and we'll ride unicorns this afternoon....K?  Let's see if Bob Pisani wants to join us...cause I'm sure he is very excited.

66Sexy's picture

Fuck this fake economy.

I used to trade, now i am 'opting out'.

I no longer choose to participate. I would rather lose my money chasing pipedreams in vegas than buy at these levels.

Have fun, or fuck it.

Cdad's picture

When a market rewards the last and worst trader of the day, each and every day, it is no longer a market.  It is officially a Ponzi scheme.  So should the morons rush into shares of  Chipotle or Apple today, and should they be carried to profits by the close yet again, you will then know what the condition of the market is.

It isn't a market.  It is the wasteland that Ben Bernanke made when he printed our dollars into oblivion and gave them to J. Dimon and L. Blankfeind and such...because Ben still detected that subprime mortgage paper was still deflating, and this after the first TARP bailout of the banks did not work [because bankers sopped it all up playing stock market and taking huge bonuses].  Ponzi freakin' wasteland!

But what are you bitching about?  We're all meeting at the unicorn ranch today.  Chin up, dude!

TruthInSunshine's picture

A unicorn ranch!

Why didn't I think of that?

My only apprehension is that they eat skittles, and those have really gone up in price because of The Bernank & The Quantitative Easing.

Cdad's picture

Brother Truth,

Skittles?  Really?  I thought unicorns ate Ipads...which are getting cheaper all the time, I am hearing....not that Apple shares know this.

Skittles?  Man, nothing is going right today.  Surely some more easing would fix things....OR...

100,000 bankers fired out of NY, NY...a thinning out of the criminal syndicate known as Wall Street.

But what do I know...this is my first trip to the unicorn ranch, and I am not a "preferred", you know, it doesn't matter what I think.

Man...I miss shopping stories.

TruthInSunshine's picture

I tried feeding them iPad, because it was cheaper than skittles, but the meat had more gristle. They thrive on skittles and earl grey.

Oh, and I agree with you about that whole Wall Street Epic Criminal Racket comment. But for now, the sheeple are buying lots of iPad with their UE and non-payment of mortgage money.

So it's good for the next couple weeks, or months, or however, until it's not, at which time it will be very, very dark.

Carl Spackler's picture

I've been raising unicorns on my farm for some time.

Having a problem keeping their horn on, though.

Hmmm. Maybe I should be feeding them some QE3 mix instead of grass and grain.

LooseLee's picture

Bob Piss-On-Me: leading establishment conformist shill at the NYSE for cnbc. What a disgrace!

StychoKiller's picture

He also defiled a Shao-lin temple, go kick his @ss, LooseLee!

the mad hatter's picture

BEN SHALOM BERNANKE: motion is seconded.

BALIFF: all in favor say 'aye'


BALIFF: all who object say 'nay'



alien-IQ's picture

and now the DXY appears to be following suit and taking a nose dive.


TruthInSunshine's picture

These are the schizophrenia markets, because you'd have to be schizophrenic to think that there's any correlation to reality -

- whatsoever.

rocker's picture

CNBC ask today: What will it take to get regular investors back in the market? 

Does the public understand it is a rigged game to take their money.  Yup !

NotApplicable's picture

All regular investors are now investing in the supermarket.

Mr Anderson's picture

Didn't mean to junk  you, my apologies.

   The I phone did it I swear

ms1408's picture

This is just manipulation to discourage future/options holders from standing for delivery.

RobotTrader's picture

My condolences to Jim Puplava, Eric King, and Chris Martenson.

Retail index now printing new highs, while gold and oil get slammed.

SheepDog-One's picture

LOL, Catfishmouth drama queen wildly exagerates a PM holder total drubbing, while reality shows PM's are still up for the day. 

rocker's picture

The TBTF and the HFT's are pushing all the scumbag banks up today. Check out FAZ. Whoooooooo.

So the rigged game continues.

DoChenRollingBearing's picture

The bots have gone crazy!  No humans are left in equities!

Gold?  Yes, BTFD.

El Hosel's picture

   Gold has been bouncing around $1400 since last fall, BFD, BTFD.

 Gold is up 200% versus the RTH since 2005


alien-IQ's picture

Robo...what the fuck happened man? You used to provide interesting posts with some occasionally valuable insight...but lately, you've become this piggish troll whos post add about as much value and content as Harry Wagner.

it's sad to see.

Robot Traders Mom's picture

Are you serious? he has always posted some dumb chart from yahoo finance showing the 1 month gain in some fraudulent tech stock. I would hardly call that valuable.

Don't encourage him. He is a 20 year-old punk who has no money to invest and no job. That is why he trolls.

Ethics Gradient's picture

There are, of course, other possibilities.

Spalding_Smailes's picture

Because when he post solid info the doomer sect like sheep dog ect .... Blast him every single time for bringing another viewpoint. So its real fun to rub this shit in said faces.

All the doomer's ignore the fortune 500 like Cat, Mcd's, Pepsi ect ..... Stupidity.

SheepDog-One's picture

Aw the Smailes kid is defending his pal Catfishmouth, thats sweet.

Spalding_Smailes's picture

Nice none answer ..... 


Got CAT ?

Got Flour ?

Got Pepsi ?

Got Macy's ?

The back bone of the USA is getting stronger, no more depression, the credit implosion was 3 years ago but you still run around like a fool yelling bloody murder .....

El Hosel's picture


Is an economy being propped up by trillions of dollars a sign of strength? Lets stop Gov interfering in all the markets and see who yells bloody murder. 

Peterpaul's picture

Don't forget MO! What's more American than home grown tobacco?

Robot Traders Mom's picture

I actually like reading your posts, as much as i disagree because you bring some good arguments into the mix.

Robot doesn't do any of that. He posts a stupid fucking chart of Apple and says something dumb about how the ipad2 has exceeded even his demand. That is what trolls do.

TruthInSunshine's picture

Smailes brings good arguments into the mix? Really?

The back bone of the USA is getting stronger, no more depression, the credit implosion was 3 years ago but you still run around like a fool yelling bloody murder

Ahhh, no.

Bay of Pigs's picture


Spalding's sense of reality is distorted. He still can't/won't acknowledge the eleven year bull run in gold. His arguments are weak and off base when it comes to PM's.

Robo's personal attacks on those gentlemen is utterly laughable. 

DosZap's picture


 No we do not ignore them, it's just that alll their profits are in offshore banks, and in offshore workers pockets.Because their products are made everywhere except HERE.

They may as well not even be here for the few that remain on the American payrolls.

It's that, and their exports that are making them profitable, it's not coming back at us,or to us.

Mr Anderson's picture

Unless you happen to own stocks of said companies.

Gold 36000's picture

No way!  Gold is going to 36000.


This is a new era.  This time it really is different.  The old rules don't apply anymore!

Millivanilli's picture

robottrader, you are a true shit fur brains kind of dude, but I like your girly pics!

lizzy36's picture

Perhaps gold/silver is telling us that there will be NO QE3 in 2011. 

Dr. Richard Head's picture

Short term action in this heavily shorted, naked albeit, silver market is not telegraphing anything regarding QE3.  Long term trend is another story.

You know what would happen without QE3 right?  Something about the inverse relationship between bonds and interest rates might give you a clue.  Again, what is that % of debt servicing as it relates to GDP?  Hmmmmm.....

I wish there would be no additional QE at this point. It would be nice to hear the music stop as I alrady have my seat.

smeagol's picture

from the plunge on the chart, watching in realtime, I thought world peace had just been declared. I BTFD

bob_dabolina's picture

I think higher inventories is extremely bullish for everything.

You see, Bernanke sees this and figures more QE will be needed.

Yardfarmer's picture

after years of watching the charts, I personally have observed that if there is to be one, a PM smackdown consistently takes place with unfailing regularity at 10:00 a.m. eastern time. i fail to see how this has anything to do with the supply of oil. please enlighten me.

SheepDog-One's picture

Yea its just more random BS as usual. People trying to link 1 minute snapshots of insanity to another are in for a lot of brain damage.

NotApplicable's picture

10 AM EDT = 3 PM London = Afternoon gold fix.

Question is, do the attacks come before, during or after the fix?

DosZap's picture

After,Londons close is the deathknell 9 of 10 times.

Just like after the US Mkt closes(when you cannot buy except w/charge cards), the bottoms are made.

ufamizm's picture

Just painting the quarterly tape. 

chinaguy's picture

gold's down -0.01% for the day...this is a plunge?