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Metal-Miner Compression Trade Grinding To Convergence

Tyler Durden's picture




 

Yesterday, when we considered some of the possible compression trade opportunities presented by the suddenly jittery market, we highlighted a very attractive convergence trade between the Gold-Copper ratio and that of Cold/Copper Miner stocks, which for the mast part excluded the impact of the manipulated stock market indices and relied purely on alpha differentials. Indeed, a few trading hours later, all those who put that particular compression trade on (which like every self respecting BSD TBTF wannabe of course involved lots and lots of leverage), can now take the rest of the day off, as the spread between the two legs has now collapsed by about a third.

The chart we presented yesterday:

And its update today.

 

 

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Thu, 03/10/2011 - 12:29 | 1036739 NOTW777
NOTW777's picture

that was fast

Thu, 03/10/2011 - 12:35 | 1036749 Math Man
Math Man's picture

And watch it compress even more as Silver and Gold continue to sell off...

 

 

Thu, 03/10/2011 - 12:37 | 1036759 HoofHearted
HoofHearted's picture

Everyone gots to make the margin calls on their NFLX and AAPL...and the euro is getting trashed.. But eventually everyone will recognize that the grand old US of A isn't exactly as fiscally fit as it needs to be. Then the DXY will continue its slow grind.

Thu, 03/10/2011 - 12:59 | 1036773 Spalding_Smailes
Spalding_Smailes's picture

Ya, but its still kind of funny how days like this prove gold • silver is a trade. All the black swans around now, market getting monkey hammered, but gold gets blasted like everything else. It should be over 1,650 like Turd said ..... He changes his tune so fast also, read some older post from the last 7 days, here we go gold to the moon. Now even today he has changed gears twice. Readers losing tons of cash .... Miners are a bloodbath ( down 8-10% )....

 

 

And 70% of the miners are still in the shit can going back to October 20th ....

Thu, 03/10/2011 - 13:08 | 1036834 Robot Traders Mom
Robot Traders Mom's picture

There are a lot of speculators in gold/silver, and I love days like this that wash them out. That being said, gold/silver are where they were all of a few days ago. It's not like gold is down 30% from its top. Physical demand is through the roof, the miners will go up in time, anyone with an IQ above 45 knows this and isn't worried. Has the US suddenly solved all its problems? Has Europe? Has Japan? Turd has been fairly accurate and provides a lot of good information. However, if you are doing anything outside of buying physical and waiting for the collapse, you will probably fuck yourself at some point

Thu, 03/10/2011 - 13:25 | 1036852 Spalding_Smailes
Spalding_Smailes's picture

Yep tons of speculators in gold/silver. Just like every other trade. If it was a safe haven like most profess , it would be up big on days like today and all the black swans and the imminent hyperinflation looming around said corner.

Look at Gold since October 20th .... Fucking nothing. ( 5 months ) So I heard all the crowing about the big run in Silver Wheaton after the first big drop. But the traders never tell you about stops getting blown out on the way to a 25% drop or getting stops blown out on days like today ...

And most people on Zero Hedge are not buying gold at 1,400 an ounce, they are trading ETF's and miners and futures .... All the futures traders are getting killed today .....

 

Turd is a snake oil salesman. He changes his tune like Bruce Springsteen. Hes already changed gears twice today . . Read his post over the last 7 days before today. Gold • Silver to the moon, Alice, to da' moon I tell ya'

Thu, 03/10/2011 - 13:32 | 1036905 tmosley
tmosley's picture

Snake oil salesmen don't give away their wares for free.

Silver is up $8 since Turd made his prediction.  Only a matter of time before gold catches up.

No deliveries again today, huh?

Thu, 03/10/2011 - 13:36 | 1036920 Spalding_Smailes
Spalding_Smailes's picture

No runs till 2.

Picked up another two accounts yesterday. Don't worry you will be free of Spalding during your dayshift of Trolling. I will only be on ZH at night. 

 

But you have so much free time yourself, but I guess you'll tell us you have this vast " internet " wealth built up .... Lol

Thu, 03/10/2011 - 13:42 | 1036938 tmosley
tmosley's picture

I'm sure.  

I have a job where I can sit in front of a computer for most of the day.  Your very presence here means you aren't working.

Slander in, derision out.  This is what you get when you slander people.  Now get the fuck out of here, you loser.

Thu, 03/10/2011 - 13:53 | 1036948 Spalding_Smailes
Spalding_Smailes's picture

I have a job where I can sit in front of a computer for most of the day.

 

Suuuuuuure, that's the ticket !! 

 

Give the readership more insight on how the de pegging via a massive treasury dump will not affect the yuan or the manufactures who depend on said peg. Your communist misinformation is laughable ...

Go walk the dog and warm up that tea for mommy ... Lol

Thu, 03/10/2011 - 13:58 | 1037007 tmosley
tmosley's picture

Sour grapes from the unemployed.  Most people don't even care enough to bother reading your worthless posts.

Funny that you think the Chinese are communist these days.  Can't tell the difference between communism and capitalism, nor can you tell the difference between an economic system and a system of government.

Might I suggest you go back to your high school civics teacher and complain that you were cheated?

Thu, 03/10/2011 - 14:13 | 1037057 william the bastard
william the bastard's picture

Specs get out first. They always do. (You Losing 1400 BTW.) When QE ends ya doomers gonna wilt. You're late to silver. What $22-25?  You'll see your gold at 600 before 1650. You'll feel greener than you're puke colored avatatr under 1200.

Thu, 03/10/2011 - 14:21 | 1037095 Spalding_Smailes
Spalding_Smailes's picture

But then they always say, I can buy at a better price. Forgetting the ass reaming from days like today.

 

Wait till QE is over is right, and when the middle east cools off, wooooooooosh, woooooooosh ... It's game over. All the doomers can't even see the fact gold would be under 1,400 if the middle east swan never flew into town, but that monkey hammer is coming soon.

 

Got to go ..... See you tonight, William.

Thu, 03/10/2011 - 14:12 | 1037058 Spalding_Smailes
Spalding_Smailes's picture

More mind numbing post buy the communist.

Never, ever, does this clown post anything of substance, just a Ron Paul troll ....

Zero Hedge readers learn nothing from your post, always striving for laughs ..... 

 

Nice try changing the subject from my first few post, notice you had no answers .... Did you find that chart yet of Gold not doing a thing since October 20th ....

Thu, 03/10/2011 - 14:56 | 1037279 tmosley
tmosley's picture

More things you can't tell the difference between: buy and by.

Also, can't tell the difference between $1350 and $1400+.

Can't tell up from down, left from right, or March from May.  You have no sense of time or space.  How can you even exist in a state of such blind idiocy?

Thu, 03/10/2011 - 14:07 | 1037031 Robot Traders Mom
Robot Traders Mom's picture

Yes, there are a lot of people on ZH that trade etf's and futures in metals. I think that is fucking stupid. Like I said earlier, there is no physical supply of size. That is all I want. The only good thing about speculators is that it creates days like this when you can buy on the cheap after they exit. Anyone who actually buys metals with any regularity would agree that they would welcome a drop to $25 so they could keep loading up.

I don't agree that Turd is a snake oil salesman, but I don't actively trade metals so I don't pay that close attention to prgonostications.  

Thu, 03/10/2011 - 13:22 | 1036872 tmosley
tmosley's picture

One would think you would be able to tell the difference between the current date, March tenth, and the date of the predition, which is June 10th.  That is three months from today.  Not today.

So yeah, feel free to fuck yourself, you slandering asshole.

Thu, 03/10/2011 - 13:29 | 1036898 Spalding_Smailes
Spalding_Smailes's picture

Maybe Turd should not have spammed Zero Hedge with hundreds of links to his blog over a 10 week period. ( stealing gold • silver readership ) He's a snake oil salesman. Book it. A serial entrepreneur ...

Thu, 03/10/2011 - 13:32 | 1036915 tmosley
tmosley's picture

He did so on the urging of dozens of members of ZH.  He didn't want to do it.

But seriously, go fuck yourself.  No-one likes you, or cares about your opinion.  You are just a jealous little loser.

Thu, 03/10/2011 - 13:41 | 1036925 Spalding_Smailes
Spalding_Smailes's picture

He did so on the urging of dozens of members of ZH.  He didn't want to do it.

Bwahahaaaaaaaawhahawaha.... Whew.... that was priceless. The great mass of unwashed doomers forced the spamming, man, are you a clown .... A total chump. More mindless crap from Tmosley the communist, hoping for the downfall of the USA.

 


Thu, 03/10/2011 - 13:44 | 1036943 tmosley
tmosley's picture

A loser retard unemployed delivery boy can't tell the difference between a lot of things.  Communists and libertarians are apparently counted among the many things, along with March and June, and up and down.

Take your slander elsewhere, loser.  Literally no-body wants you.

Thu, 03/10/2011 - 13:47 | 1036960 Spalding_Smailes
Spalding_Smailes's picture

Mr. Slander calling the kettle black, and only about 5-6 doomers ever complain about Spalding. Thousands of readers ... But only a few doomers junk Spalding, Lol'

 

Look at the charts, moron, Golds since October 20th .... Nothing.

Thu, 03/10/2011 - 13:55 | 1036995 tmosley
tmosley's picture

I guess you fail to see the dozens of junks your posts tend to accumulate.

Retarded delivery boys don't know when they aren't wanted.

Yet another thing that you can't understand.

Thu, 03/10/2011 - 14:16 | 1037033 Spalding_Smailes
Spalding_Smailes's picture

And lets stop here.

Your post are what, hearsay, Spalding always backs his claims up. You just troll around dropping misinformation. None of your post teach a fucking thing. Treasury dump looming, hyperinflation looming, but ,but, but now it might be deflation now, I better reallocate my fictitious internet assets Lol

Retard ... Thats a great word, guess you have no family or friends with Autism ect .... Get back in your clown car, akak is waiting.

But your true colors always shine through. Your a red blooded communist who trolls the web blasting the USA with lies and tall tails of some imminent crash, just around the corner, some day ......

Thu, 03/10/2011 - 14:25 | 1037113 william the bastard
william the bastard's picture

Tmos is an abortion Dr in Tx by night and a gold pimp by day. (I said gold not silver cause he didn't preach silly until $20 plus.)

Thu, 03/10/2011 - 14:58 | 1037291 tmosley
tmosley's picture

Your mother asked me to tell you that you need to start wiping your ass before you go to bed.  She's not going to clean your sheets anymore.

Thu, 03/10/2011 - 14:25 | 1037116 william the bastard
william the bastard's picture

Tmos is an abortion Dr in Tx by night and a gold pimp by day. (I said gold not silver cause he didn't preach silly until $20 plus.)

Thu, 03/10/2011 - 15:00 | 1037313 tmosley
tmosley's picture

My posts teach how to make fuck tons of money.  If you did as I did when I did it, you have doubled any and all savings you have accumulated over the last two years.  If you did as I did over the last four, you have quadrupled them.

"Spalding" doesn't post facts, he posts slander.  He claims that Turd said $1650 gold by March 10th, when he actually said June 10th.

You don't know up from down, son.  Best get to that delivery, or you won't be able to afford any milk tonight.

Thu, 03/10/2011 - 12:41 | 1036768 mynhair
mynhair's picture

Hope so.  Want back in that Big Kitty mine a lot cheaper than 3.97

Thu, 03/10/2011 - 12:42 | 1036771 Tyler Durden
Tyler Durden's picture

Do you even realize what the components of the trade are? Perhaps you should go back and look at the original post...

Thu, 03/10/2011 - 12:51 | 1036788 mynhair
mynhair's picture

Just want silver lower, is all.

Thu, 03/10/2011 - 12:56 | 1036799 RogueFit
RogueFit's picture

How low do you think Silver goes Math Man? Gold?

Thu, 03/10/2011 - 13:43 | 1036946 Math Man
Math Man's picture

Silver will be below $20 this summer.

Thu, 03/10/2011 - 13:53 | 1036986 tmosley
tmosley's picture

What DATE, and what will you do if you are wrong?  Leave forever?

Thu, 03/10/2011 - 14:14 | 1037068 william the bastard
william the bastard's picture

Will you?

Thu, 03/10/2011 - 15:04 | 1037328 tmosley
tmosley's picture

If one ounce of .999 pure physical silver is ever publicly available for less than $20 from any major online retailer, I will leave forever.

How's that for conviction, you spineless moron who can't tell the difference between abortion doctors and chemists?

Thu, 03/10/2011 - 16:44 | 1037838 Harmonious_Diss...
Harmonious_Dissonance's picture

Your just pissed off, Meth Man, because GEN sucks so damn hard it DROPPED more than Silver today!  Holy shit you pick the shitty of the shitty! Time to sell that Ferrari soon!  LOL!

Thu, 03/10/2011 - 12:35 | 1036752 HoofHearted
HoofHearted's picture

LTTFTD (Listen to the fucking Tyler Durden)

Thu, 03/10/2011 - 13:35 | 1036921 JW n FL
JW n FL's picture

only if he shows a little leg while typing on his laptop..

Thu, 03/10/2011 - 12:47 | 1036779 10044
10044's picture

Warmin up for the day of rage bitchez..lock&load on au/ag today

Thu, 03/10/2011 - 12:55 | 1036794 monopoly
monopoly's picture

I add to miners on every dip. Not in this for a week or day trade.

No complaints at all.

Thu, 03/10/2011 - 13:26 | 1036883 onlooker
onlooker's picture

-----Do you even realize what the components of the trade are? Perhaps you should go back and look at the original post...

I did and now I get it. nice trade

Thu, 03/10/2011 - 13:32 | 1036913 chistletoe
chistletoe's picture

...sad .... all these comments.

Y'all sound like momo morons, not what Tyler was talking about at all ...

 

Tyler -- I'm too small-time to take a sophisticated spread like you recommended --

but I did see the danger signs that you pointed out,

man, they were Gross!

and when ZH and CNBC and Cramer all recommended shorting GM,

I figured how could I go wrong!

 

ZH rools

 

 

Thu, 03/10/2011 - 13:41 | 1036932 JW n FL
JW n FL's picture

people are taking some money off the table? who cares?

silver is a long term, not a daily trade.. for myself.

Good Luck All!

 

Thu, 03/10/2011 - 13:45 | 1036957 Temporalist
Temporalist's picture
Newport's Ortel Discusses Stocks, Inflation, Strategy

http://www.bloomberg.com/video/67477424/

 

Thu, 03/10/2011 - 13:52 | 1036969 Grand Supercycle
Grand Supercycle's picture

Copper daily chart begins downtrend.

http://stockmarket618.wordpress.com

Thu, 03/10/2011 - 14:07 | 1037030 koot
koot's picture

Gold to copper charts and ratios is that of the old fiat economic system, instead of looking at which side of the sails are full it is better to first check which direction the wind is coming from before deciding which direction to tack.  When cash becomes as much a liabiity as it is an asset, it is time to decide which is which and move.

Thu, 03/10/2011 - 14:21 | 1037092 william the bastard
william the bastard's picture

"1400s up Captain Kirk.  Trendline break dead ahead 6 o'clock, Sir"

"Give me Warp speed Scotty"

I.. canna... keep.. 'er.. up.. Cap'n. 'er.. wing... 'r ...gonna go. She's gwinna blow the mounts anna... then 'er wings... Cap'n she's gonna blow!

Thu, 03/10/2011 - 14:20 | 1037093 chumbawamba
chumbawamba's picture

I think Tyler is sending us secret coded messages with his typoes.  Today's cryptic missive:

"Cold copper mast part"

Must be referring to a shop if some sort.

I am Chumbawamba.

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