WTI Recovers Over 60% Of Losses Since Goldman Downgrade

Tyler Durden's picture

To all who panicked following the programatic Goldman downgrade of Brent two days ago and dumped their holdings right into gaping maw of Goldman's overeager prop desk (which has once again seen some notoriety today although few actually care as everyone is now aware of the 200 West M.O.), our condolences. Crude has now recouped over 60% of the drop following that downgrade. In the meantime QE3 is today pegged to ON, as the inflation trade comes back again with a vengeance. Except Goldman to pull all punches and proceed with downgrading all the other commodities it is still bullish on, including gold and silver.

Elsewhere, gold is just pennies away from its all time high, and silver seems poised to take out $42 today.

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NOTW777's picture

was that a new era silver correction? 42 to 40ish

Ray1968's picture

It was just a small sale that our PMs went on. Great time to jump in or add. Now lets ride the next leg uuuuupppppppp.

nope-1004's picture

JPM is failing miserably at downward price manipulation of metals.

Goldilocks now fails at downward suppression of other comods.

Who will Benocide hire next to try to convince me that there is no inflation as I barely keep my head above water paying inflated bills with devalued shit?

I never thought white collar crime would lead to a fascist state, but here we are.



Bicycle Repairman's picture

A whole two days later Goldman Sachs = F*A*D*E

Thunder Dome's picture

Just wait til June.  Silver longs will know great pain.




Long $25 SLV Puts

pendragon's picture

with this vol youre better off selling in the money calls

SheepDog-One's picture

Exactly what I was arguing the other day when the big story about the $1 million 25 silver put purchase came out.

Of course now all the silver bears are disclosing theyre also loaded up on $25 SLV puts. 

pendragon's picture

that short gamma might ensure a few sleepless nights though...

Thunder Dome's picture

No one is more annoying these days in the entire marketplace than the silver bugs.

d00daa's picture

Options "traders" that don't know when they should be long/short volatility are infinitely more annoying, IMO.

tmosley's picture

Sounds like sour grapes from a sore loser to me.


homersimpson's picture

I'm sure those losses you've been taking betting against silver the past year is probably more annoying..

ZeroPower's picture

Agreed. Happy for you silver longs, but you can't be serious in calling this 42-39.8s a correction. Wait for 37s at least before reloading.

d00daa's picture

There are no June11 puts written at any strike.  What month are you trading?  How much are you allocated to this "bet?"  25 strike up and down the chain looks pricey to me.

Thunder Dome's picture



Should be real juicy!

Thunder Dome's picture

Let's just say around June 12 I may be calling Tyler to buy a controlling interest in Zerohedge.

tmosley's picture

More likely you will be slinking off like a beaten dog, probably to find a bridge to jump off of.

Knife catching moron.

Spastica Rex's picture


Why would you want that?

Bicycle Repairman's picture

LOL.  Thunder Dome, buddy, just reach over into the next cubicle and wake up Johnny Bravo.  He hasn't posted in weeks.

Ray1968's picture

I hold SLV puts also... 1- hedge against a sharp correction 2- profit when the truth is learned about the fraudsters at JPM and HSBC that they have no silver in the vaults.

Holding puts is no sin even for silver bugs.

d00daa's picture

Of course not, if you're using it as a hedge.

Expressing a short speculative options "trading" position in SLV by being long Jul 25 puts is borderline retarded.

Ray1968's picture

Perhaps I misread him, but when you are long a put... you're in a short position for the underlying security. To short a put, means you sell the put hoping the price of the underylying security goes up (long)

Ray1968's picture

Perhaps I misread him, but when you are long on a put... you're in a short position for the underlying security. To short a put, means you sell the put hoping the price of the underylying security goes up (long)

doggings's picture

Just wait til June.  Silver $25 put longs will know great pain.

there, I corrected your obvious typo for you..

NOTW777's picture

i dont view SLV as silver

Id fight Gandhi's picture

People are buying metals instead of holding fiat. Yen euro dollar all trash.

That's what these traders dont understand. They think it's just a run up in another commodity

Fíréan's picture

 Interesting that this all happens excatly same time that Glencore announce their flotation !

tmosley's picture

Let's let the moron trolls try to claim they are making money by being leveraged short now.

Morons.  Long physical, bitches.

RobotTrader's picture

OIH, XLE, XOP still sucking wind.

Need to see these take off to set the path for higher prices.

lieutenantjohnchard's picture

what's sucking wind is your portfolio of widows and orphans stocks. and the walls creep ever closer in your dusky, dingy apartment.

SheepDog-One's picture

Whats not sucking is gold and silver, rocketing up today! Too bad you didnt buy PM's long ago, but piled into stocks which are sucking wind losing purchasing power no matter how much they go up.

NotAllowed's picture

Tyler pretty sure at the end of the article you told us we "have been warned"

Tyler Durden's picture

Correct: warned that Goldman will be buying everything it downgrades. Gold is next.

NotAllowed's picture

This is why I love ZeroHedge, it's almost like cheating!

Dr. Richard Head's picture

I remember back in the day of my early buying of stocks I would dream that one day I would have some good insight on the market in the form of an insider tip.  Never did I realize a motley crew of bloggers would be that tip; furthermore, having precious metals as the avenue. Once one steps outside of the matrix and sees it for what it is, it is impossible to go back. 

I believe I owe a donation to ZH - http://www.zerohedge.com/content/donate-zero-hedge  It's coming, just as soon as I restock my food pantry. 

Inflation is a Bernanke.

jmac2013's picture

TD- maybe I'm just slow in grasping this, but with JPM kicking and screaming about oversight of the derivatives market, isn't it possible that JPM and the other large institutional players can take one position in the market and the opposite one in the highly leveraged derivative market, and nobody would really know?


Robot Traders Mom's picture

You are exactly right. JPM is like the local bookie though. Sleezy douchebag that always wins in the end playing both sides and making the spread...

SheepDog-One's picture

Thats what I assumed right away, if GS is calling the top on something, that means its about to shoot straight up.

slaughterer's picture

What argument can GS legitimately trot out to downgrade gold/silver other than saying that they are telling the Fed to abruptly end quantitative easing?    The oil downgrade just borrowed a trope from the UK inflation undershoot on demand destruction. 

Popo's picture

Goldman probably bought their own dip.

Cash_is_Trash's picture

I was thinking the same thing...

One day, they will overestimate their importance.

Id fight Gandhi's picture

It's easy money when they can front run themselves.

Bicycle Repairman's picture

Goldman bought the dip of some fool who sold.

NOTW777's picture

WTI looks like it held an earlier ascending triangle BO

rocker's picture

Heard on Bloombert today that Godman Shafts might be up for perjury charges.

Will Bernie Madoff finally get a room buddy.  Or could it be Baba.

Temporalist's picture
Senate panel concludes Goldman Sachs profited from financial crisis



Goldman Misled Congress After Duping Clients: Levin


LawsofPhysics's picture

And congress will promptly do NOTHING.

Dr. Richard Head's picture

Congress will do plenty, that is if you believe doing something is reciting platitudes on television, slapping bankster fraud offenders on the wrist, and then holding out their hand for a campaign contribution. Son of a Bernanke!