This page has been archived and commenting is disabled.

US Economic "Surprise" Factor Plunges By Most Since 2009

Tyler Durden's picture




 

The below chart from SocGen demonstrates why the stock market, unlike bonds, is currently massively overpriced. The current economic surprise factor swing, from an all time record at +100 recently, down to about -100 (the third lowest in the past 5 years, and likely longer), a 200 point swing which only compares to the 2008-2009 Lehman collapse, was accompanied by just a 15% drop in stocks over the past 8 months, indicates two things: either the current "soft patch" is indeed "transitory" as the Fed would like us to believe, or that the market is pricing in QE 3. And while SocGen, which is the source of this chart, believes that the collapse is indeed "transitory" we completely fail to see what the factor will be that will push the global economy higher in Q3 and onward: Japan? Europe? Fiscal generosity in the US? China? No, no, no and no. Sorry, there is no catalyst that will provide an impetus for a hockey stick effect this time around. Except, of course, for more monetary easing, perhaps in Japan, but mostly in the US. Yet for that to happen, as we have been claiming for nearly half a year, stocks will need to plunge to their pre-QE2 levels, or about 900. Alas, the mutual funds which currently hold the lowest amount of cash in history, and are levered more than ever, are simply unable to sell without blowing themselves up. We are confident, more than ever, that an unstoppable desire for extend and pretend is about to hit an immovable force...

From SocGen:

Slowdown driving yields lower, but double dip clearly not priced in. 10-year Treasury yields are back below 3.0%, as those – like us – who had a small bearish bias into the end of QE2 continue to be frustrated. There is little doubt that increased EMU have supported some flight-to-quality flows into Treasuries. The Greek 5-year CDS has widened by some 500bp over the past 2.5 months (a 50% increase). However, the prominent driver remains the economy, which has delivered sharp negative surprises over the past three months. The consistent and large positive US economic surprises at the turn of the year have reversed sharply. If anything, despite the help from EMU jitters and other signs of reversed exuberance (e.g. Chinese equity market at a 4-month low) 10-year Treasuries have struggled to keep pace with the poor data (Graph 1).

The Fed told us at the 27 April FOMC that the Q1 slowdown was transitory. Well, the transition has grown a bit long, with Q2 showing little bounce so far from the soft 1.8% growth seen in H1. Admittedly, we have seen more transitory negative forces at play; in particular the Japanese disaster has disrupted the global supply chain. Let’s make no mistake, however, the market has priced the slowdown as being a temporary phenomenon. Graph 1 suggests that yields might have fallen much more otherwise. Equally, the S&P has erased just 15% of the gains made in the eight months to late April. Global markets are clearly not pricing a double dip just yet. In a double-dip scenario, QE3 would be on the table, which would feed the Treasury rally.

Our economists certainly are in the ‘transitory slowdown’ camp and are looking for a bounce in Q3. Sentiment should start to improve by mid-June, when the first manufacturing reports for this month are due. This improvement in sentiment would coincide with the end of QE2 by late June, adding pressure on Treasuries.

In the meantime the pain trade is for Treasury prices to crawl higher as the TYU1 closes the gap to 124-02 (see technical analysis section). There is little data to turn sentiment in the coming week, once the NFP report is out of the way. The 3-, 10- and 30-year Notes need to be digested though. Note that the PBoC may deliver another rate hike ahead of the June 6 holiday as it fights inflation (our economists predict a hike this month), and this could add to global growth concerns.

 

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 06/06/2011 - 09:04 | 1342928 Dolemite
Dolemite's picture


Precious metals to present good buying oppurtunity after a near term correction?

Gold and silver showing signs of weakness, and oil is confirming.

http://deadcatbouncing.blogspot.com/

Mon, 06/06/2011 - 09:33 | 1343031 Sig Sauer
Sig Sauer's picture

Seriously, are you going to post this on every article today?

Mon, 06/06/2011 - 09:38 | 1343035 chartcruzer
chartcruzer's picture

seems reasonable to expect a typical summer Precious Metals correction.  PM and PMM still on sell signals.

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s234896717]&disp=P

oil seems to be simply participating in the luqidity withdrawal trend like most commodities+stocks

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s219715419]&disp=P

Mon, 06/06/2011 - 09:04 | 1342931 Ancona
Ancona's picture

Transitory? I would start getting your parachute ready, because it is starting to look like the bottom will drop out.

Mon, 06/06/2011 - 09:24 | 1342994 BlackholeDivestment
BlackholeDivestment's picture

...there is no bottom to the bottomless pit.

QEEEEEEEternity... http://www.youtube.com/user/petegriffin#p/u/138/Fa5FfnqF24w

Mon, 06/06/2011 - 09:46 | 1343071 urbanelf
urbanelf's picture

You're talkin' about a transitory bottemless pit, right?

Mon, 06/06/2011 - 09:08 | 1342947 monopoly
monopoly's picture

Moving along on the right track. Slow but steady. See no reason to change course. Thanks for all you do Tyler.

Mon, 06/06/2011 - 09:13 | 1342948 Michael Victory
Michael Victory's picture

Extend and pretend.

<sarc> More easing = deflation. </sarc>

I'm amazed how the price of food hasn't risen.

 

Mon, 06/06/2011 - 09:18 | 1342983 augie
augie's picture

Extend and pretend.

That sort of thing isn't my bag.... baby.

Mon, 06/06/2011 - 09:40 | 1343039 Michael Victory
Michael Victory's picture

That sort of thing isn't my bag.... baby.

Tell Benny.

 

Mon, 06/06/2011 - 09:06 | 1342949 Cdad
Cdad's picture

Correct!  There must be Plunging and Screaming in order to initiate the next bailout...errrr...quantitative easing.  The picture perfect, text book breakdown in the S&P last week is the confirmation.

So everyone should enjoy the nonstop criminal syndicate Wall Street banker prattling over at the BlowHorn [CNBC] about "buying opportunities" and "historically cheap valuations" and "channel checks indicate positive future qtrs" etc.  This as they wholesale liquidate their positions to whatever idiot stands there with maw gaping... as the great deleveraging continues.

Market credibility is now below zero...breaking down to the 200 sma of "ridiculous."

Have fun dip buyers.

 

Mon, 06/06/2011 - 09:38 | 1343046 SheepDog-One
SheepDog-One's picture

'Channel checks'...what did CNBC do switch over to Bloomberg and see what crap theyre spewing?

Bunch of nonsense, the Wall St rollercoaster ride is over. No one believes another QE round will do anything except make it all worse. 30,000 McDonalds hires, whoopeee! Those min wage workers buy new houses and cars? Anyone with a brain and MONEY knows this is over and just fguring the best way to get out, which would be dumping your 401K right now.

Mon, 06/06/2011 - 09:06 | 1342950 Stuck on Zero
Stuck on Zero's picture

In answer to the question ...  what the factor will be that will push the global economy higher in Q3 and onward ... I will take the economists point of view and state that a major war, natural disaster, plague or torching of a few cities by disgruntled citizens could be the answer.

Mon, 06/06/2011 - 09:26 | 1343005 ibjamming
ibjamming's picture

You had it correct with your first guess...a major war is coming.  In the ME...for oil and to take out Islam.  If China resists, we'll declare war with them too, wipe out ALL the debt they hold...and voila!  Cheap oil, 2/3 of our debt erased, "forced" austerity here at home.  Win-win for us and the ONLY way out as I see it.

Mon, 06/06/2011 - 09:40 | 1343051 Oh regional Indian
Oh regional Indian's picture

War indeed ib, but not just in the middle east.

If you look carefully at th elast three years or so (post 2008 crash), it's been a series of chess-moves, all over the board. You look at the key factors, Socio Economic, Socio-Political etc. and it is clear that a stage is being set. If most of this weird weather is man-made too, which I believe it is, then we already in the 2nd of 9 innings. 

The war never ended. Korea/Vietnam/Iraq/Iran/Bosnia/Afghanistan/IraqII/Libya...

Pretty continusous, same players. It's quite obvious.

ORI

http://www.youtube.com/watch?v=tOWq7k_Gm9U

Mon, 06/06/2011 - 10:22 | 1343161 ibjamming
ibjamming's picture

We stay to remind people who is boss.  We stay when we beat someone, we stay when we help someone.  It's a part of the game for sure.  I'm thinking more along the lines of Iraq, Afghanistan, though...those are "basing places" to attack Iran.  Face it...the ME will roll over once Iran is gone.  Then we just tell them how much we're going to pay for that oil...and how much to pump.  Depending on what happens...we just may go Crusades on them and take it all back.  We DID own all that land until we gave it back.  I think it will depend on public opinion of Islam/Muslims...if they go crazy with terrorists in the US and Europe...I think we'll take it all back and a lot of people are going to die.  We could see a genocide...people suffering austerity will already be pissed off.  If terrorists deny them even more...I think they'll support a religious war.  You don't think a holocaust can happen again?

$50 a BBL oil will go a LONG way towards jump starting global (the west) prosperity.  Does anything else matter? 

India will pick the "right" side I'm sure.  Isn't it still pretty much a colony?  At the top government levels?

This could be the great screwing of China...send it back to peasants living in huts with their ducks.  After all...China IS becoming a threat...not imminent...as long as they don't have a "global reach" military.  Nukes are the wildcard.  The "west" hold no allegiance towards the Chinese...we'll fuck them over in a minute.  Just as they would to us.

I've often used the chess metaphor... 

When are you thinking it happens?  I give it until the end of October...maybe a little after.  The budget is fucked, a war is our only way out!

Mon, 06/06/2011 - 09:52 | 1343079 mayhem_korner
mayhem_korner's picture

a major war is coming.  In the ME...for oil and to take out Islam.  If China resists, we'll declare war with them too, wipe out ALL the debt they hold

What's this - a war against creditors?  Whose side would you be on in ME?

Your thesis is that we should go militant on those who we've depended on to effectuate our economic collapse.  I don't follow...

Mon, 06/06/2011 - 10:23 | 1343166 ibjamming
ibjamming's picture

Arab creditors.  They're not "one of us"...so fuck them.  Just like the Chinese.  Look at how much we owe them.  Look how much high priced oil is hurting the world.  It's time to eliminate that fucking middle man!  $50 oil will do a world economy wonders!

A WW is the only way out the west has.  Read what I said to ORI above.

Mon, 06/06/2011 - 10:38 | 1343188 falak pema
falak pema's picture

as far as oil is concerned its now physically constrained, not a political constraint. You cannot make the arabs more US compatible than they actually are...USA owns those with oil; but its China/india/brazil that is hurting the oil price, along with traditional US/EU markets. So what ever you do, unless you NUKE the world, the price of oil will just keep going up. Not enuff supply and no real substitute (except russian gas/venezuelan goo). So if its WW3 we are talking about it means taking out the BRICS to save the US market. That is a tall order. Given that US forces cannot even take out Afgh/pak with traditional arms. Armageddon...? Nukes? No holds barred free for all? Military Fukushima quadrillion times? Goodbye civilization!....

Mon, 06/06/2011 - 10:54 | 1343262 ibjamming
ibjamming's picture

It's the "middle man" that has to go.  Oil would be $50 a BBL if we didn't have to support the entire population of the ME when we buy it.  If all those oil producing countries were to suddenly cease to exist...oil would halve in price.

Yes...the use stays up...but you're no longer supporting all those people over there.  Look at the wealth that goes to the ME countries.  If you take the oil fields...and oil becomes "free"...the cost goes down.  We support all those people living in a desert...with our oil dollars.  Eliminate the people...you get to keep your dollars.

I still say it's our only way out.

Mon, 06/06/2011 - 11:17 | 1343323 falak pema
falak pema's picture

could you define which "middle man" population you are talking about?
Does it begin in ...Indonesia and extend to....Mauritania? That's 800 million people...The middle man problem was Hitler's final solution in Europe. Yours seems to be on a much grander scale! You are now a true Aryan...I wonder what the Chinese think of your middle man theory...as they ARE the middle kingdom on earth!

Mon, 06/06/2011 - 11:45 | 1343388 ibjamming
ibjamming's picture

Yup...war sucks.  For now...the middle man are the "Arabs".  If everyone else who's a major oil producer falls in line with CHEAP oil...there's no reason they can't live happily ever after.  We all know the goal is a world full of free spending customers...who can make their monthly payments.

Hitler MAY have had a real problem with the Jews...remember who writes history...but we DO have a BIG problem with the Arabs.  If the Americas had a lock on fresh water...would it be right to gouge the world who desperately need it?  Isn't that what the "Arabs" are doing now?  They're walking all over us.  Indoor ski centers?  Tallest hotel?  Islands shaped like palm trees?  They're SWIMMING in our money...money we can't afford to be giving them any longer.  Just like SS and Medicare need to be cut...our costs for oil also need to be cut.

We can do this peacefully of we can get rough...YOU decide.  I think the rough path is the preferable path...at least to governments.  As I said, we can eliminate all the debt that the ME countries currently hold.  If China decided to make their move...we'll eliminate everything we own them too.  A total of 2/3 of Americas debt could be wiped out in an instant.  So we can start the climb again.

What is China going to do against the west?  Besides a suicidal nuclear launch...not a damn thing.  No blue water navy.  No global reach aircraft.  An army of a billion men...sure...most have pitchforks.  It's also a LONG walk from China to the ME oil fields.  Past Afghanistan?  How convenient we're already there...  China's been our bitch...slaves to make stuff for us...on credit!  On credit!  They rely on the outside for their raw materials...and that's what a blue water navy is for...denying them of those resources.  China is a young bull terrier puppy.  It can hurt you with a nip...and it has to die before it gets big enough to be a threat.

I have a feeling that we'll talk again...before the year ends?  After all...we're already bankrupt and we NEED a way out.

Mon, 06/06/2011 - 09:07 | 1342954 Jayda1850
Jayda1850's picture

All of the seven-figure salaried economist have been completely and utterly wrong on all  their forecasts and yet they are all out trying to convince everyone that this "soft patch" is all transitory. How many times do they have to be proven wrong before the ignorant public realizes that we've entered into the land of the absurd? God forbid people actually discover there is more going on than who's winning dancing with the stars and american idol. Sadly, america gets what it deserves.

Mon, 06/06/2011 - 09:46 | 1343070 SheepDog-One
SheepDog-One's picture

They perish for lack of knowledge and wisdom....huh maybe that bible wasnt such a fairy tale after all.

Mon, 06/06/2011 - 09:11 | 1342955 Absinthe Minded
Absinthe Minded's picture

Whatever happened to that Swiss banker that spilled the beans on offshore accounts in the Cayman's? Wikileaks was supposed to drop a bomb on this and still nothing. Weakleaks?

Mon, 06/06/2011 - 09:17 | 1342982 cosmictrainwreck
cosmictrainwreck's picture

geez.... are those guys still around?

Mon, 06/06/2011 - 09:26 | 1343001 serotonindumptruck
serotonindumptruck's picture

Perhaps he is suffering from Morgellons disease. That tends to happen to people who blow the whistle on the international elite.

Mon, 06/06/2011 - 09:41 | 1343042 shortus cynicus
shortus cynicus's picture

Or do not agree to attack dictators having oil and tons of gold in own vaults.

Mon, 06/06/2011 - 09:15 | 1342971 High Plains Drifter
High Plains Drifter's picture

"You all make me laugh, you're so bearish you probably can't see the sun rises every single day! YES, I am bullish on the US stock market (and there won't be any QE3) and the US economy. It is still a jobless recovery but what you all do not see -- or more precisely, do not want to see -- is that the worst is behind us, not ahead of us like all you doomsayers are constantly warning. That's it from me on this topic, will work on my elite fund piece today and enjoy myself."

Leo 5/15/2011

Mon, 06/06/2011 - 09:23 | 1342990 Absinthe Minded
Absinthe Minded's picture

Leo! paging Leo! Now where could he have gone.

Mon, 06/06/2011 - 09:46 | 1343057 SheepDog-One
SheepDog-One's picture

Leo's a dork.

Mon, 06/06/2011 - 09:51 | 1343088 fuu
fuu's picture

but but but Chinese Solars set to sail!

Mon, 06/06/2011 - 10:23 | 1343168 agNau
agNau's picture

With no formal, or "other" QE, where do the funds for bond purchase in the ongoing PONZI materialize? There MAY be a gap and then QE after the deflationary "episode". But sorry to inform, rising rates will become uncontrollable sooner rather than later w/o a continuation of a full punchbowl. Note how with the trash paper falling the market is still not catching bids. Bernank has gotten some bowel movement toward the bowl of treasuries. The question now is will he go for a nice big flush in the commodities complex to once again push major in the devaluation.

Mon, 06/06/2011 - 09:20 | 1342977 Bartanist
Bartanist's picture

Soft patch?!?

What kind of soft patch will we have when the world population actually starts shrinking in a few years?

The growth paradigm should be dead because there is an inherent inconsistency between "real" growth and population decline.

The alternative is to continue the consolidation of industries until there are just a handful of companies left and no competition. Which of course, is the exact opposite way to have both a free and stable society. In stable free society, just as in a corporation or the military there are divisions of social groups and responsibility down to the level where people can both understand the relationships and have some feeling of control. Obviously an overreaching federal government is anathema to societal health.... ramble, ramble, blah, blah.

Mon, 06/06/2011 - 09:45 | 1343066 ibjamming
ibjamming's picture

I didn't junk you BTW...

Why does the world population HAVE to fall?  It doesn't HAVE to.  War in the ME...the west taking over control of the oil will allow expansion like we used to enjoy until the Arab oil middlemen started demanding too big a cut so they could build indoor ski resorts, tallest hotels, and islands shaped like palm trees.

They're throwing their fucking wealth in our faces!  It's time to cut them out.  Besides, they're Muslims, who will reject a war with them?

Yup, war is coming.  A forced austerity for the populous to "support the war effort" al la the 40s.  It gives the inner city young men something to do.  And...if China objects, we simply "delete" all that debt we owe them from our computers.  Instant solvency!  How would YOUR finances fare if you could instantly delete 1/3 of total debt?  Like maybe a "forgiven" mortgage?  Instant prosperity.

I'm telling you...war is inevitable...it's win-win for the west...especially the US.

Mon, 06/06/2011 - 10:35 | 1343194 MrBoompi
MrBoompi's picture

There's only so much food and water to go around, and once we start seeing a real decline in oil production, food will become even more expensive and scarce. And this isn't even factoring in the effects of global warming on agriculture. There will be depopulation. This doesn't necessarily mean we have to suffer premature violent or painful deaths, we could simply reduce the rate of reproduction over time, but I wouldn't count on that.

There's more money to made on war, and it accomplishes the same thing, only quicker. War also has the advantage of increasing the authoritarian control of the masses. The Elites don't mind war at all, since they fund every side.

The most dangerous myth some of us have heard is we only recocered from the Great Depression because of WW2. Let's hope we don't start begging for WW3.

Mon, 06/06/2011 - 09:24 | 1342984 Alcoholic Nativ...
Alcoholic Native American's picture

You can't create jobs and expect them to pay as much and have as many benefits as they have had in the past in our new McEconomy.  Besides, now that housing prices have crashed after all major financial institutions were allowed to fail the cost of housing rent/ living have fallen drastically. So we don't need these bloated high paying jobs with bennies.

 

Oh wait never mind.

Mon, 06/06/2011 - 09:29 | 1343008 Absinthe Minded
Absinthe Minded's picture

Yeah, everybody's shitting themselves over the state of their portfolios.

I see Leo is reading but not posting, we all got junked for not drinking the koolaid. Could be Robo too. Just another stripe for us infantry in ZH's army.

Mon, 06/06/2011 - 09:27 | 1343013 LoneStarHog
LoneStarHog's picture

There is only one TRUE surprise left in today's bullshit world:  A Fart With A Lump In It!

Mon, 06/06/2011 - 09:31 | 1343021 Goldbugger
Goldbugger's picture

@ High plains Drifter.

Yes there will be a QE3,and it will be global but it won't be called that.

There is not such thing as a Jobless recovery, that has never happened, if so show me the stats! There are more people on food stamps now than when the marketcrashed in 08', and more poeple unemployed, the number don't count those who have fallen off. You can be bullish on the market as long at the FED keeps prininting monoty out of thin air, but the effects of that are inflationary down the road.

 

Mon, 06/06/2011 - 09:32 | 1343024 Natasha
Natasha's picture

Wall Street has been using the US economy as a cash cow for decades. The cow has keeled over and Wall Street continues looking for new ways to drain it. What they conveniently fail to notice, is the cow is rapidly running out of blood and its veins are collapsing.

They will not stop poking the poor beast until the majority of Americans are living a Haitian lifestyle.

Mon, 06/06/2011 - 09:37 | 1343032 SheepDog-One
SheepDog-One's picture

Pretty dangerous game theyre playing, pumping a market on money printing, then when that runs out plunge the markets and repeat? And they count on people believe their story that '3rd times a charm' using the same actions that have failed twice? What if people holding 401K's just decide theyve had enough and dump it all before they can re-pump it all? Just a stupid game theyre going to lose control over.

Mon, 06/06/2011 - 09:48 | 1343065 Absinthe Minded
Absinthe Minded's picture

Or better yet, wait until they pump it and then dump it for a gain for a change. Never mind, I forgot we're talking about sheeple here. I plan to wait for the next orchestrated take down of the PM's and then dump my 401K into AU and AG. Got some already but too much is never enough

Mon, 06/06/2011 - 09:51 | 1343077 SheepDog-One
SheepDog-One's picture

Well if anyone has a brain, why not do it now instead of waiting for a collapse, and hopefully the re-pump which very well may not get us anywhere near these all time bubble highs again? Unless they just like rollercoaster rides.

Mon, 06/06/2011 - 22:05 | 1345650 Real Estate Geek
Real Estate Geek's picture

Dump it . . . to whom?  If your timing is off, you'll find that there's no demand for your shares.

Mon, 06/06/2011 - 09:36 | 1343040 mayhem_korner
mayhem_korner's picture

Our economists certainly are in the ‘transitory slowdown’ camp and are looking for a bounce in Q3.

That camp is drinking Fukishima water.  High test.

Mon, 06/06/2011 - 09:46 | 1343055 shortus cynicus
shortus cynicus's picture

Expect one news: Fukushima water is good for health. It kills e. coli!

 

Mon, 06/06/2011 - 09:39 | 1343049 Ignorance is bliss
Ignorance is bliss's picture

A hurricane slammming the east coast will reinvigrate the markets

Mon, 06/06/2011 - 09:40 | 1343052 Arch Duke Ferdinand
Arch Duke Ferdinand's picture

Maple syrup joins the ranks of broccoli and blueberries as new 'one-stop shop' superfood...

http://goodthoughtsgoodwordsgooddeeds.blogspot.com/2011/04/maple-syrup-j...

How blueberries can slash body's fat cells by up to three-quarters...

http://goodthoughtsgoodwordsgooddeeds.blogspot.com/2011/04/how-blueberri...

Mon, 06/06/2011 - 10:48 | 1343236 falak pema
falak pema's picture

maple syrup is only available to citizens of the four privileged states of W canada, which are the safest places to be on earth, and also, have maple syrup to stop you from getting... tonsillitis...and absorbing Fukushima's shit. What a place to be when you have lost your Hapsburgian kingdom, and feel like a simple Canuck... as common place as woody wood pecker.

Mon, 06/06/2011 - 09:41 | 1343053 chartcruzer
chartcruzer's picture

it is entirely feasible that in the process of luqidity leaving risk,, that some it end up in bonds particularly as global political entropy is increasing.   Rates on the 10yr (for example) have been much lower and we are in a clear rate downtrend.

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s204627799]&disp=P

Mon, 06/06/2011 - 09:53 | 1343081 SheepDog-One
SheepDog-One's picture

I dont know why they consider bonds so stable and safe, they pay off in ever decreasing dollars. 

Mon, 06/06/2011 - 09:55 | 1343098 Boston
Boston's picture

In the meantime the pain trade is for Treasury prices to crawl higher as the TYU1 closes the gap to 124-02 (see technical analysis section). There is little data to turn sentiment in the coming week, once the NFP report is out of the way.

Bring on the pain!

The chart says it all---if the slowdown isn't transitory (and who here really believes it's actually transitory), thenthe 10-year is has a lot more room to rise.  Look out 2.5%.


Mon, 06/06/2011 - 10:01 | 1343113 Hubbs
Hubbs's picture

All this hoopla about gold going to correct, then reverse course and rise reminds me of the weather channel trying to hype a hurricaine when in fact it is only a tropical storm. The weather man stands out in front of the surf and says "see the winds are strong enough to blow my hat off!, or knock over the garbage cans over, etc" just to embellish the storm for ratings effect. Same with gold-these little gusts or down drafts are nothing. I for one do not fear gold going down that much, and certainly not as much as my home, car, fiat cash etc. OK, so maybe I haven't bought any gold this year, but I certainly ain't selling.

Mon, 06/06/2011 - 10:30 | 1343183 Rule of 72
Rule of 72's picture

Music to my ears.  I hope "extend and pretend" is smashed to tiny bits against the wall.

My only recent trade besides physical silver has been ProShares Short Dow 30 (DOG).  I got them near the 52-week low, and I think they've got quite a bit of growth to go if the DJI needs to shed 900 more.

Mon, 06/06/2011 - 11:45 | 1343400 I am Jobe
I am Jobe's picture

Just a slight bump in the words of the President from last week. Watch for more flip flops and more MCD job fairs. USA is posied to grow with min wage jobs and junk bonds.

Do NOT follow this link or you will be banned from the site!