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WTI Drops Below $100, Down Almost 10% On The Day, Complete Wipeout In Euro Brent
The anti-speculator witchhunt is bearing fruit: following the wipe out in precious metals, the next, and key, target of this commodity take down, crude, just went from triple to double digits, hitting a low of $99.70, with the $100 limit orders resulting in a surge in the USD and accelerating the drop in EUR. Stocks continue to be completely disconnected from this massive liquidation across all commodities, as every mutual fund knows all too well that Ben will always step in and make sure that the Russell 2000 never has a downtick. Yet this complete isolation of equities from other products merely confirms that not even the HFTs correlate stocks to other asset classes. It also means that HFTs are no longer present in stocks, which means that even the fake liquidity provided by HFTs is no longer there, and we will likely have a far worse flash crash the second Brian Sack loses control of the stock market.
Yet the move in USD-priced crude is nothing compared to what is happening to Euro-priced Brent. In a word: "total wipeout"
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Die oil bitches.
I am so glad that all of this inflation fear fueled hysteria is ending and common sense and logic is bringing the costs of essential energy, commodities and precious metals back in line with the intrinsic value of currency.
O NO DEFLATION!!!! Start QE3 now!
Just the KSA saying thank you for the KIA, IMO.
OMG LOL BBQ
I'm less concerned with silver today, and more concerned with oil.
If Obama manages to keep the equity markets somewhat afloat, while simultaneously killing the commodity space, he will get re-elected in a landslide victory against whatever dolled-up, carnival-barker the Republicans can find at the Ms Conservative Milf USA pagent this summer. The killing of Osama is the icing on the cake. And if unemployment improves a little? Game over.
The decline in oil is horrible news for Republicans and libertarians, based solely on the prospects for Obama and the 2012 election. We can only pray that oil marches higher after this correction.
Why can't speculators short? ;-)
In Texas, men don't wink at each other, you libtard.
GO BACK TO HUFFINGTON POST!
You should replace Hannity Gunslinger. Then I might listen to talk radio.
"I am so glad that all of this inflation fear fueled hysteria....(blah blah blah)"
OH Please! These guys are so predictable you can play em' like a fiddle! I have been telling people for 3 months to expect a sharp correction in the markets. They're just laying the ground work for phase 3 of dollar destruction.
"Q-E INFINITY AND BEYOND!"- Buzz the Bernank Lightyear
That is only temporary, and short temporary. With QE3, everything will be back and above (except silver) in July already.
As smart ZH-er tmosley once wrote, it's going to be one of those days when many of us will not be very productive...
Yea like totally.
One of these days the non-ZH shills have to rise up against the ZH shills. Hopefully we'll see lots of Hendron-Va red spilled and flowing.
Does one of you dumb fuckers understand that OPEC is retaliating for the death of Bin Laden via their collusive relationship with the The Peak Oil Scam?!!
Please get a fucking clue, Bitchez!
Wow, Au down $53, Ag down $4.
Massacre, Bitchez!
More info, FWIW.
Dow: -149
gld:slv ratio: 4.2
24hgold.com / eBay widget Au premium: 11.9%
24hgold.com / eBay widget Ag premium: 43.1% (was 60% earlier today)
It's not over until the FAT MAN sings! FUKUSHIMA IS SINGING!
REACTORS 2 -3 are smoking!!!!!! THERE IS SO MUCH GOING ON!
http://fiatsfire.blogspot.com/2011/05/theatrics-thursday-bailouts-galore...
KEEP YOU POWDER DRY FOR MORE GOLD BUYING!!! MEXICO AND CHINA BUYING UP GOLD ON THE QUIET!!!
I am shorting paper gold and buying physical gold. I would imagine the big guys are doing the same. I would also guess that it will make the snap back in gold very pronounced vis a vis the other commodities.
Yes! The BIG BOYS are buying all the physical gold and silver they can! This shaking of the tree is BULLSHIT to bring on QE3.
Funny, still cant find silver to buy for under $48 anywhere right now. Paper games.
Seems to me that there will be soon
http://www.google.ch/trends?q=sell+silver&ctab=0&geo=all&date=ytd&sort=0
I sympathize with those invested in oil, as you have here a market where the fundamentals point firmly UP. Sadly, you folks couldn't take physical delivery, and as such are much more vulnerable to paper games.
some people rented boats to park the physical in.. was the last thing I saw floating around in a prospectus.. that was 6 months ago? ish??
GS is fucking pissed I bet.
SELL CLIENTS (so we can buy the dip you jackasses create) !
FUCK, A BIGGER DIP!
And as per usual gasoline will get more expensive. Love economics.
Your avatar is a dead ringer for this girl who was the office nympho way back when, just give her a glance and she'd be sitting on your lap in your office at the drop of a hat. I swear its her.
@tmosley-you don't get enough credit for your common sense approach. too much over analyzation by people on here.
it is what it is...you either have it in your hands or you don't. you either believe in the end game or you don't.
Only an idiot would give credit to an idiot
you maaaaaaaaaad?
Mosley is definitely not an idiot-- but rather a troll on payroll.
Most people here can't see that.
lolwat?
Edit: Seriously, wat? Who on Earth would be interested in having an anarchocapitalist on their payroll? You think APMEX is shelling out the bucks to me, a chemist, to come and sell physical silver? Guess what, they don't need me. Their inventory moves just fine on its own.
Simpletons, I'm the paid troll working for the Fed. Buy the Russel 2000, buy. These aren't the droids you are looking for. You may go about your way, to buy more Russel.
I cant find silver to buy anywhere today for under $48. I'll probably stop by my dealer later and see if he as any more boxes of silver dimes he can sell me by the pound.
APMEX seems to have plenty for well below that price.
Yes, that's nice. Simple and true, wheither way of the debate you are doesn't matter.
Question: Would it be a good idea to go into a paper trade, make profit and then transfer to physical (in time for that "endgame")? What would that end game look like?
I know there's a lot of people waiting for deflation, and buying opportunities, and stay liquid (euros, US dollars, swiss francs). Personally I think it's a good idea to cover all exits and own physical too, right now.
Your thoughts?
I'm doing it and it's working out well so far. I don't care if they run gold down to ten bucks. My DGZ will earn profits I can pile into more physical. Why lose sleep at night? Hedge the physical position.
I read that Morgan-Stanley chartered more oil tankers than Exxon.
Statistics, Damn Statistics, and Lies
LOL T, too funny
Oh well, that's the slippery nature of the oil trade.
More market manipulation?
And nothing compared to what is happening to silver.
Howeer, looking for a re-nice entry point here.
Just wait untill Ben wants to give a speech.
Who knows how low they can push it.
Exactly right -- anytime the Bernank gets on the mic, or starts cracking his knuckles, Gold and Silver will get their upside-ON again. Old story in this rigged market - artifically knock it down so you can buy MORE cheaply, and then take your hand off the joystick and let the true market pressures move your newly priced commodity higher than it was before
I was just on the phone with my mint. They had me on hold 20 minutes to talk to a bullion sales rep. That’s never happened before. Longest wait ever.
You think they might be lining up out the door to buy physical silver on this dip? The rep told me his caller cue was 40 deep when he walk in this morning. LMAO.
It will probably be a record sales day for physical silver, thanks to the criminal Bankster Mafia running the Paper Silver Scam at the COMEX/CME. The sales rep said he is running 2 buyers to every seller. Buyers are accumulating more silver than the sellers are selling.
I wonder how much physical silver the Asians and Indians are taking off the market today given the 20% Off Sale the Wall Street Mafia are giving them?
dup
I believe this is called volatility, but it may be transitory, or is it better than expected? annualized? lobotmized, how about irrational exuberance? counter intuitive, no i think it is or it should be marginalized, a tea cup and handle? No I got it, it is a Fibonacci retractment or is it retracement, margarine compression no that would be squashed butter. Could it be a bear trap? no that's illegal in this state.
What ever it is I'm confident you all will figure it out, I getting sick of it all, (not the ZH think tank) need to get more done around the ranch/farm.
good to see a drop in price, but at the same time it screems trouble
$2 gas here we come, atleast until November 2012
Just like the guy in fast and furious that hits his nitrous too early, you are too early on your call. Gas drops to the cellar this time next year for at least 6 months until after the election. You can bet your ass on it. Otherwise my prediction that Obama loses his primary to Hillary WILL come true and she will be our next President. Romney is the ONLY GOP candidate that even has a snowball's chance in hell of winning the Presidency against Hillary. If gas prices are this high or higher come November 2012 then the GOP could run a monkey with cymbals and beat Obama. There is at most another year of high gas prices and then we see relief at the pump. Major relief. At least for a little while. These predictions are of course predicated on nothing else major blowing up in the world between now and then literally or financially which is a stretch all by itself.
Obama's War on Oil
http://spectator.org/archives/2011/05/04/obamas-war-on-oil/
Now that we know they can ramp the dollar, knock down commodities, and hold up the market at the same time. What's going to make them stop? Everything is going well for the Fed, and the other central banks who undoubtably been screaming their heads off are probably sighing like they just passed a kidney. The politicians getting ready for 2012 love it too. Nobody wants it to stop, so how deep will the rabbit hole go for gold and silver? You might want to hedge with paper.
not without crushing economic activity...$3 might be achievable.
Oil priced low enough to support $2 gas will cause apeshit economic activity in developing nations which would provide price support
Oil only costs $5 to pump out of the ground
.. but 80$ to find that barrel
PLUS THE CUT FOR THE GUY WHO OWNS THE LAND. US Integrated producers don't own any real estate. Uncle Sam doesn't like to talk his petro buck inflow.
I just spit up my water reading your comment. lol hella funny
Who the fuck touched my junk?
http://www.youtube.com/watch?v=HFGyq1xcKEU
I was wondering the same thing. Actually when the wife won't, I make it a point to opt out of being irradiated and have me some grope and change. Travel is now satisfying as well as glorious... <sarcasm>
That is just too damn funny.
on Thu, 05/05/2011 - 14:26
#1244248
Oil only costs $5 to pump out of the ground
*************************************************************
it is that cheap becuase it is a by product of pumping other things!
and!
#1 at the top!
of the top 10 things you can NOT! do with Oil!
drum roll ...................................... "You can't eat it"
$0.50 / barrel FOB in Saudi Arabia. So what? I'm not Saudi so there ain't nothing I can do about it but bid against everyone else in the world for it.
The Fed always wins.
Until they don't.
they always win when you play with their monopoly money... did anyone really expect not to have their ass kicked?
I guess Ben B. wasn't lying when he said 'the Fed has many tools at it's disposal..'
That's the beauty of keeping the data secret and only announcing the 'results' of things.
It shore would be interestin' to see exactly who is buying and selling what everyday...wouldn't it?
Nah the FED really only has many different sized hammers at its disposal.
Yup, Barry and Timmay and Larry (oops, is he gone yet?) and the other 435 stooges at the ass end of Pennsylvania Ave.......
When will the commodity massacre stop?
It looks like a 2008 redux. Except that this time, stocks don't move.
Playing the western collapse is harder than one could imagine: it all depends of political reactions and insider info, with two strictly opposite outcomes: inflation or deflation.
The Stock Market is 'Remote Controlled'.
Physical gold wins in either scenario.
Silver is for the more optimistic, since bulls a really relying on continued industrial production.
bite your toungue!
I will have you know sir! that gold is mined and turned into bricks which then are stored.. forever!
Silver is mined for $3 to $5.. and is a by product of Gold that is then used in everything! like your computer, your T.V. and anything else worth its weight in salt that is electronic.. your car? iPod? and the list goes on..
but what you dont have.. is a bunch (professional silver bug term) of piles of it sitting around collecting dust.. so in a finite world silver is more scarce! than Gold!
http://en.wikipedia.org/wiki/Scarcity
and we all know how I LOVE! the only Catholic President Kennedy! who's good name has been smeared for decades now, becuase he liked good. no scratch that good shit! GREAT! He LOVED!! GREAT!!!! PUSSY!! how can a man be faulted for fucking Marilyn Monroe! http://www.youtube.com/watch?v=k4SLSlSmW74
Back to the Point.. Kill the FED! Kill the FED's Debt held against "We the People" at 6% interest.. and put us back on a PM based monetary system. I offer..
Executive Order 11110 http://www.john-f-kennedy.net/executiveorder11110.htm
That how ya' get'er dun!
Fucker can't be faulted for his taste in pussy, but he deserved to die a much more painful death. Executive Order 11037.
Back to the Point.. Kill the FED!
deserved to die for issuing a ban on US citizens holding gold assets outside the USA??
Why such a rabid and 'red necked' stance?
The US was founded in a bloody attempt to escape a condition of tyranny of the State by establishing a new sovereign State. Kennedy's executive order created new US government sovereign authority well beyond that which the British colonies originally fought to liberate themselves from. To me that is Treason.
Why should the State have jurisdiction over the rights and actions of its citizens when they leave the jurisdiction of the State? To me it reaks of slavery through the NWO concept of universal jurisdiction.
Why not round up all Americans who have visited Amsterdam on suspicion of drug law violations, and use their assets to pay down the national debt?
What happens to the poor schmuck who finds himself subject to two diametrically opposed laws- one commanding him to do something and one forbidding him from doing the same thing?
What does it say about the US's respect for the sovereignty of other Nations when they enact laws which are intended to supersede the laws of other States within their own sovereign borders?
Platinum is for the REAL optimists!
Tell us how it feels to be waterboarded.
I wouldn't know.
My average price in physical Pt is about $1200.
I have been looking at some 2006 set of proof polished, burnished and whatever else.. that have some really kool looking platinum..
the 2006 sets of anything are bad ass.. I am now some kind of nerd junky coin guy.. sorry if it is not of interest..
sorry here is the platinum set http://www.apmex.com/Product/32963/2007_W_2_Coin_Proof_Platinum_American_Eagle_Set_10th_Ann.aspx
http://www.providentmetals.com/2006-american-silver-eagle-20th-anniversary-set-us-mint-3-coin-set.html
I do not reccomend the above dealer, I dont know them to be good or bad and have no relationship with them.. they just had a picture!
Feels like free water, bitch.
http://memegenerator.net/instance/7639373
Exactly.
I just looked through my blinds at the gas station down the street.
Still $4.29 a gallon.
Oh, I'm getting cornholed on my REIT shorts also. I didn't know the news today was so bullish for CRE. I was wrong....very very wrong. That shit is resilient.
It usually takes a few days for gas to come down after an oil smackdown. The nice part is that it also takes a few days to go UP.
I'd look for cheaper gas by Monday if this move holds up.
"Three gets you five" you are wrong there.
Gasoline prices are notoriously "sticky" going back down.
We'll see!
Personal observation. I didn't keep notes or anything.
OK,,,
$4.15 at the station closest to me just awhile ago. If anything changes, and I see you around next week, I'll give a personal observation as well.
"Gasoline prices are notoriously "sticky" going back down."
Yes, and that goes doubly so with food. Nestle and all the other middlemen who process and package food are not going to pass along any savings for quite some time.
Flat-to-lower interest rates are probably a REIT friendly environment -- given their use of debt and given their dividend yields are likely sustainable absent a late 08/early 09 economic repeat.
Wah??? But Bill Gross said....
ZSL is looking Green....
so are dollars.
think 35 has support? interesting that 40 didn't offer any resitance on the way up.
There are two .50 gaps from under the current position on 3/18-3/21 that can take this down to ~33.60 fast.
Damn, we closed both gaps before the end of the day.
this is just getting funny :)
I wonder how they do it. Is it with the GS programm? Are they dumping the stock they have been buying these last 2 years?
Oh for christsake! Here I am with no SCO!
Serious. I was told to buy it last week.
CREEP (Committee for the Re-Election of the President) can't have surging food and energy costs. Neither can Chairsatan.
What a manipulated market scam this all is. I particularly enjoyed seeing the Dow Jones surge 100 points in about 45 minutes on piddling volume starting at 11:15 AM (Eastern).
No manipulation here... move along...
CRAP (Committee for Re-Americanizing the President) has been busy lately, photoshopping birth certificates, shooting Bin Laden's corpse (for being unemployed), supplying large american flags for students at 11PM on a Sunday night, man, what a great movie this would make.
Strider52, you have an amazing... profile. Yowsa!
Obama is on fire. First he kills Osama now he's killing speculators.
Good work Obama will vote for you again+++++
Sure and I wish he would get over his 'sensitivity issues' and release the pics of the dead oil speculators.
Nice shot! Similar in form to the earlier $5-out-of-the-ground snark...
Buying WTI at $85 - 95 ....Peak Oil + problem in Middle East makes this a good middle to long term investment.
WTF is going on???? Im so lost.
This is what peak oil does. It smashes consumption. Then the GDP hit is ugly. Then GDP tries to recover, increasing consumption, but the lower available supply won't allow that so the price spikes again.
And it repeats. A sawtooth pattern of GDP and life, sloping relentlessly downward.
The only significant news of the day was twofold:
1) Iraq finally admitted it won't be able to do 12 million barrels/day by 2017 (or ever). They cut their target in half to 6.5 mbpd.
2) The Russians have gasoline shortages and are adjusting duties on export. The formula for those duties only work with oil priced lower than 100. Never, ever forget that Russia, not Saudi Arabia, are the largest pumpers of oil on Earth.
Yes, please tell me how stocks are immune.
Oil plummetting on demand fears, silver, gold, copper, everything, on economic slowdown fears causing a fleeing out of the inflationary risk trade, and stocks are down only 1% from their multi-year highs? By all rights, stocks should also be getting wiped out.
It's almost as if there is an invisble hand propping up stocks...
After the flash crash that helped push through TARP, they put in circuit breakers. Markets can't go down more than around 200 points a day now without approval.
Shhh...you're going to let out the secret.
Explain this...
http://data.cnbc.com/quotes/IYR
Stocks are backed by Bernanke puts
It's coming...the complete disconnect and flash dump. Today's trading is entirely FUBAR. Haven't seen anything like this since 2009...just in the other direction this time. If I can see it, surely the terminators are seeing it, as well.
Helmets on. Wicked reversals are very near now as levered up long and short ETFs lose their minds. But I'm sure Mary Schapiro will soon stop her relentless meetings with the criminal syndicate known as Wall Street just in time to not matter.
Well put, Cdad.
+ 1 oz Au
Any data on the more liquid components of Money Supply recently? A sudden drop in the past few weeks?
If I recall last M1 and M2 were both up.
M0, MB, M1 and the liquid elements of M2 have perfectly lead the grouped commodity prices for the past 2 years.
If MS is still going up, then what happened today?
Guess I can shower with hot water again this month
Has the jobs report been leaked already?
Its Thursday afternoon, so yes definitely the ADP report has been released and pre traded by the criminal syndicate. Wow it must be a doozy.
Hmm, seems like that GS commodities call not too long ago is coming to fruition. Ah, the bankers win again.
But .. but .. but ... I thought you guys said silver was going to $100!
No-one said it would be a smooth ride.
Paper silver might not make it there, but physical sure will.
This smash is getting so ugly I'm starting to feel bad for all the ignorant silver bugs.
I love it! I consider it an extra free oz per $100 fiatsco bill!
I've seen worse.. like starting in Sept 2008. Regardless, most PM bugs don't feel bad for the dumbass trolls that either missed the ride the last 7 months or still fail to realize most ZH readers who have been here a while have made more than enough on silver to ride out this artificial shakeout.
Exactly. Most silver bugs have a super low cost basis, and would only use a dip below that cost basis as an opportunity to lower it.
Christ, if physical metal were available for less than my $16 dollar cost basis, I'd sell my damn house to get at that.
Provided you could actually sell your house.
lol, true.
In recent times can anyone ever remember a day when Silver would move up $3-$6 per day? I can't. And yet on the way down, no problem. The cocksuckers over at the CME keep releasing reports on why they are increasing the margin requirements. They keep spouting all this nonsense about volatillity on the way up but they sure don't give a rats ass about volatillity on the way down! Of course this is because their masters and insider friends are profiting immensely from this crash down just like in 2008.
To be fair, that is always the case. Escalator up, elevator down.
If that was the case - divergence between physical and paper, then why isn't Sprott's physical backed bullion trust also dropping a corresponding amount? Their fund is 100% backed and they DON"T LEASE out product.
There is a supply squeeze from the mint to the stores... but there is plenty of silver, just momentarily tight at the consumer end. Make no mistake about it, the coin shops have orders in at $50... and if they can't sell at $50, then they take a loss. They are trying to keep their premiums up until they work through their $50 bullion purchases.
Any coin shop that has been around since before 2008 is hedged. If they weren't hedged, this volatility would kill them, and they would be closed half of the time.
Sprott's fund, though supposedly fully backed by silver, is still paper. Unless every investor can take delivery with a minimum order of 10 oz or so, it will trade like paper, but with a higher premium that is available elsewhere.
I wonder how that Texas University feels right now. You got some splainin to do Lucy. I went back and looked at some charts. It appears the energy complex has been in front of big market down moves the last four years
Why would they feel any differently? They bought the gold sometime last year, as I recall. They just recently took delivery of it.
the crude complex has been very kind to the endowment. they're not the least bit worried. the seed capital for the endowment to become the second largest university endowment came largely from oil, and a whole lotta taxes on the oil by the railroad commission.
plus, they've been long gold for some time. just released the info recently. kyle bass gave their exact cost basis. they're up substantially. plus gold is only down 6.2% from its peak.
Gasoline's $4.17 in Webster, TX -- About 1/3rd of a mile from several oil refineries. It's more expensive across the street from where they make it than it is hundreds of miles away. Explain that to me, please.
Local taxes, perhaps?
Free market... why sell at a relative loss locally? If someone over yonder will pay $4.39....
I love the media spin on this, at least Bloomberg had it half right they
pointed out that the price drop was due to margin hikes in order to bring the speculators
under control. Seems to me this is a bold faced attempt to crush the mid sized and little guys as to better control the market by a handful of bigger of players. Widening margins will only hurt those who do not have the cash to stay thus enabling those who can to buy more at a cheaper rate (due to massive selling by the weaker holders) and eliminating the competition.
Meanwhile the priemum on physical is widening +30% from what I have seen.
I just bought a few Maple Leafs on Apmex at a 4.2% premium. Is that high?
DRAGONS AWAKE!!!
Will the CME reduce Silver margin requirements today? No
They have reduced it ONCE in the last year.
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/bern...
I wonder if a longer term chart of this nature is available anywhere?
Seems as if there is a rolling wipeout taking place. First silver, then gold, then then euro, then oil. The only asset still virtually untouched are stocks. We may well be seeing the makings of an historic crash tomorrow.
I think stocks are just shell shocked today and don't know what to make of the move. The unprecedented moves are scary but some stock investors clinging to hope that this will take pressure off of margins. I think it will sink in that something is extremely wrong with all markets and stocks will head much lower.
The Return of the Bernank...
You will buy stocks. He will destroy all other markets.
But, is that legal?
"I will make it legal"
Peace has not broken out in the Middle East.
Buy.
just went by a gas station and prices are up
Huh, John Williams Any comment or did you get so far up your ass you forgot to look macro.
Man the pumpers are everywhere.
Inflation my ass.
USD to .90
Oil retests 35
gold to 1100 or less
silver - bottomless pit from hell full of Elmer Fudd's and Hegdies who were leveraged 10:1 probably who believed the pumpers. That is just downright ugly. I won't even guess where the bottom is on that pig.
But I will have the bus warmed up when it does
Nothing has changed, Federal Reserve Fiatsco still in a mad pump fest, about to shift into 6th gear, jobs and overall economy a disaster. No, what we're seeing here is the World Currency War just upped a few notches.
so when you buy will you be a pumper? or will you post that it's still a pig in a bottomless pit?
btw: when you buy does that mean you'll be an elmer fudd, too?
Unfortunately, all these moves could occur by Friday noon & reverse by Monday - welcome to the Ponzi
Anyone yet consider how bad this pisses off people like the Saudis? And Iran, head of OPEC?