The Market's Verdict: Buy Stocks, Buy Bonds, Buy Gold

Tyler Durden's picture

Since early this morning when Germany dropped its nasty econ bomb, the US has been bid. It's not like Europe was sold, it's just that US Treasuries, US Equities, and US-denominated Gold have been on a tear (as the USD has been sold). Equity volumes remain dismal but apart from a near-vertical snap up to VWAP, AAPL has been going the opposite way all day (down!)... Or perhaps, now that Europe is closed, someone just leaked the election results given that ridonculous surge in S&P futures?


Is ES trying to snag 1429 (the 50DMA) again? or just playing catch up with Gold?


we've seen this before... vertical ramp and then parabolic dump...


and AAPL - finding comfort among the VWAPs...


Equities are all alone again in their risk-on over-zealousness...


Charts: Bloomberg and Capital Context

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GolfHatesMe's picture

33 Liberty Partying like it is 1999

Mr Lennon Hendrix's picture

Fiat currency has no value. Zero. Nada.  The dollar and all fiat is in a perpetual deflationary spiral due to the lack of intrinsic wealth.  This is why other assets are increasing in price.

When we talk about hyperinflation what we should really be discussing is the deflationary spiral of fiat.  Fiat has lost, is losing, and will lose.  The end game will be that everyone will be holding paper in their hands while tears stream down their faces thinking that it was possible to throw paper at goods and procure wealth.  Instead people hoarde it like brain dead rats waiting for a day to spend it at DJ 6k.

That day will never come.

LawsofPhysics's picture

Correct Mr. Hendrix, but try explaining to the average sheep what "fiat" is or what a "federal Reserve note" really is.

NotApplicable's picture

Meanwhile, Silver and Gold have gone vertical.

Full-Retard Day?

e_goldstein's picture

The JPM put-monkey must be standing in line waiting to vote.


Muppet of the Universe's picture

You know.  I fucking tell everyone here yesterday, buy.  buy it, fuck it, even buy bonds and stocks and correlated items.  Starting to wish i had remembered oil...

Point is, fuck u guys.  Also, point is, This is the last one. QE loosing steam, can't save the market after this lil tugboat peters out.  Better just hope Q4 and Q113 don't suck.  You got a few months, and this lil jimmy johnson might just flop harder than bob doles dick.  All one can do is hope the training wheels were enough, and that the market will ease into its precarious, rehypod, credit-cluster shitfuck of a bed.  Goodnight,

TruthInSunshine's picture

If Obamney wins, I'm going uber long Webvan and

JPM Hater001's picture

So last week I watched the Vid on spotting bubbles- really well done.

What makes apple not a bubble?  That really looks like the BTFD just after the peak...and just before the catastrophic plunge south.


Look at the 5 year chart.

Update: really, right here;range=5y

Grant Williams (must see)

Extraordinary Popular Delusions And The Madness Of Markets

Muppet of the Universe's picture

I gotta be honest, it does.  Just look at BDSI. Bought that shit at 2, sold 3 80.  Came back for more @ 5, sold at 6.50,  shorted to 495, n then tried to buy it at 490... Bailed on that shit 475.  & bdsi looks and feels just like aapl.  stupidly huge bubble based on 'potential'...  Massive sharp peak, bearflg during support, and giant flop?  Who knows, but tomorrow will be a critical day for aapl.  Least I think it will.

GrinandBearit's picture

Most sheeple dont' know any better... why would they?  They've been programmed from the time they were kids to believe those green rectangles are real money.

robertocarlos's picture

All I know is the store takes them in trade for a chocolate bar and I get some coins back. It's been that way for me since a chocolate bar was 5 cents. 

Muppet of the Universe's picture

How else is one supposed to buy all the bubble gum in the world?

Orly's picture

"The dollar and all fiat is in a perpetual deflationary spiral due to the lack of intrinsic wealth.  This is why other assets are increasing in price."

Hmmm.  Seems to be a strong dichotomy from one sentence to the next.

Mr Lennon Hendrix's picture

Fiat deflates and goods inflate via price. Simple supply/demand, nevermind that fiat has zero value.

Food has value. Shelter has value.  Hard assets have value.  Fiat has no value other than percieved value.  Percieve value in one hand and shit in the other and see which fills up first.

ATM's picture

Fiat has value - for now. That's why we are still able to trade it for real goods and services. But, as you explain, it is losing value over time as it has done for 100 years.

What I believe is coming is a final explosive collapse in all value of fiat. The slow trickle downward is one thing, it is entirely another when the rest of the accepted value evaporates overnight.

SeverinSlade's picture

To be fair, he said the dollar has no INSTRINSIC value.  That's absolutely correct.  The actual value of the US dollar is essentially worthless.  It current holds value only because people are willing to accept it for goods and services.

GrinandBearit's picture

Algos runnin' everything up today.  

It's all fake, so who cares.

Mr Lennon Hendrix's picture

The dollar is fake.

Do you care?

GrinandBearit's picture

Do I care about the  USD... no.   Holding lots of phyzzz allows me not to care.

Lost Wages's picture

By the end of the day, EVERYONE can retire.

monopoly's picture

Very strange day. But what else is new.

LawsofPhysics's picture

Well yes, if you are talking about physical gold.  If you are talking about paper, then you should have bought already and you should be selling ahead of the upcoming bond auctions.

especially true for any equity priced in FRNs, same as it ever was.

SheepDog-One's picture

Whatever is not the worst, make sure to pile into it and buy to all-time record highs. Yea this is gonna last real long. 

Mr Lennon Hendrix's picture

Using inflation adjusted metrics we are nowhere near all time highs in any good.

caimen garou's picture

algos dont know weather to shit or go blind and as usual the traders on the floor of the nyse are telling election jokes and wondering if they will have a job in the near future as computers run the show!

SheepDog-One's picture

Yea why even have a 'trader' on a 'floor' today....just for 'old timey' things to show on TV as if theres some actual market that exists? Hell just use life size cardboard cut-outs.

buzzsaw99's picture

all they do is watch the algos bounce prices around

Muppet of the Universe's picture

LOL, no.  Algos fire trades off, so you don't have to manually.  It means u can sell or buy in an instant, that's pretty much it.  But algos don't handle the market complexities.  people do, for now, and a while still to come.  The only thing that has died off in trading is the pit, b/c there is no need for pit trading anymore.   The algo is just the gun, if you will.  The human is still the operator of said gun.  The gun will do what you want it to.  For now.

knukles's picture

Guess the traders are just traditional barbarous relics.

PUD's picture


robertocarlos's picture

Would they know that Romney has won because of early polling samples? It's good if true. Despite the magic underwear and all that, it would be good to have a new start. I'm not even worried about WWIII.

Orly's picture

I wouldn't waste my fret credits worrying about WWIII.  It'll be over in a flash.


Mr Lennon Hendrix's picture


The candidates are two cheeks of the same ass.

robertocarlos's picture

You're right but it is hard to get it through my head because it means everything is a lie.

caimen garou's picture

HA HA MR L H, made tea come out of my nose! your right, thoes two cheeks would'nt make a good ass!

Orly's picture

The Brits and other Europeans have been going all-in after their close for the past few weeks; I guess after they got the request from us to not let anything go down before the election.  They've been ramping everything after their close, including risk-on 4X pairs.

One can only sit and wonder in awe.


SheepDog-One's picture

Well, if true, then we have 1 more close in this 'its all for the election' paradigm we've apprently been running on for 12-18 months or so.

monopoly's picture

Agree, a new start. At least we would have hope for 3 or 4 weeks. With Obama back to the pits.'s picture

Why would a brand new lash in the hand of the overseer give you hope?

Manipulism's picture

Sorry what nasty econ bomb from Germany?


Orly's picture

German factory orders came in at -3.3% on expectations of -0.3%.

European recession in full swing now and not a whole lot anyone can do about it.

But that's all right!  Party on, dudes!

Orly's picture

P.S.  There goes the USDJPY ramping right on schedule...

Now, back to our regularly scheduled programming.  (And it's going to get ugly...)

Muppet of the Universe's picture

charts agree with you.  But the weakness of the euro may just offset the dollar's precipitous drop?  Makes me wonder.  Plus I don't like shorting my own currency with my currency.

Orly's picture

No, it means the USD is going up.

Muppet of the Universe's picture

....  ummm..  wait what?  Going up?  Cus I don't see what ur talkin boot.

All I see is us dollar down 30 ticks in a few hours...  U still solvent after that?