This page has been archived and commenting is disabled.

Commodities Gone Wild

Tyler Durden's picture





 

It all makes perfect sense. S&P 500 futures are 33 points off Friday's lows (Boehner's 'constructive chatter' and Fiscal Cliff is fixed), EURUSD is rallying decently (Greece is fixed), and commodities in general have gone vertical. Gold is back above $1730 but its Silver and Oil (tensions rising - despite cease-fire?) that is running the high-beta pump this morning. WTI is almost 4% higher than Friday's lows up near $89. The highly correlated nature of everything is perhaps merely sympomatic of a low volume week ahead and short-term oversold conditions - we suspect little is really resolved in any of these three 'event risks' and the same real-money anxious investors will use strength to reduce exposure further - since remember, if the S&P 500 is anywhere near its highs by year-end, there will be no fiscal cliff resolution.

 

 

Chart: Bloomberg

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 11/19/2012 - 10:17 | Link to Comment Zer0head
Zer0head's picture

Tom Keene has been providing the play by play all morning

 

"we're getting reports media center taken out in Gaza - Ohhhhh Look at that Brent just spiked up"

what a douche he is

Mon, 11/19/2012 - 10:19 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

I'm sure we can expect to hear from all the douches today.

Mon, 11/19/2012 - 11:05 | Link to Comment Lost Wages
Lost Wages's picture

One of the douches speaks tomorrow:

November 20 Speech--Chairman Ben S. Bernanke
The Economic Recovery and Economic Policy
At the Economic Club of New York, New York, New York
12:15 p.m. ET 
Mon, 11/19/2012 - 11:09 | Link to Comment BurningFuld
BurningFuld's picture

People have heard Bernanke has had an epiphany. He has reviewed his grade 5 mathematics and discovered that to reflate the US economy he needs to print at least 100 billion a month to cover the US trade deficit and also begin to add back some lost equity. (Excluding of course the twist program which is just for the government largess)

Mon, 11/19/2012 - 11:12 | Link to Comment greyghost
greyghost's picture

ten o'clock witching hour for silver. set your watches. getting hit now, just like a fine tune swiss watch

Mon, 11/19/2012 - 11:23 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

BUY

Mon, 11/19/2012 - 12:16 | Link to Comment Go Tribe
Go Tribe's picture

Stacka-stacka-stacka. Mo silver.

Mon, 11/19/2012 - 10:20 | Link to Comment slaughterer
slaughterer's picture

We hot chicks love the douche bag guys.  

http://www.holytaco.com/25-hot-chicks-douchebags/

Financial nerd goldbug preppers?  only to the extent they buy us gold jewelry.   

 

Mon, 11/19/2012 - 10:26 | Link to Comment otto skorzeny
otto skorzeny's picture

Got STDs?

Mon, 11/19/2012 - 10:31 | Link to Comment Xibalba
Xibalba's picture

reheads not warheads.... blondes not bombs..... brunettes not fighter jets...

Mon, 11/19/2012 - 13:40 | Link to Comment francis_sawyer
francis_sawyer's picture

As Chris Rock said...

"If a girl has a pierced tongue ~ she'll probably suck your dick"

"If a guy has a pierced tongue ~ he'll probably suck your dick"

~~~

And remember... Whatever anybody tells you... THERE IS NO SEX IN THE CHAMPAGNE ROOM...NONE!

http://www.youtube.com/watch?v=N03oUt9w3p0

Mon, 11/19/2012 - 10:36 | Link to Comment fuu
fuu's picture

Aww now I'm really wishing you had come over and beat me up.

Mon, 11/19/2012 - 13:02 | Link to Comment malikai
malikai's picture

Thank goodness. Imagine a decent guy getting caught up with one of those hideous creatures.

Mon, 11/19/2012 - 10:18 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Wait what?  In order to actually do anything or produce anything real you need energy and commodities?  Who would have guessed it?

Bloody sheep.

Mon, 11/19/2012 - 10:20 | Link to Comment venturen
venturen's picture

Is that core or non-core?

Mon, 11/19/2012 - 10:20 | Link to Comment Stuart
Stuart's picture

well lets get that dumbas's Mashaal to antagonize Israel some more (HA HA, you missed me, you missed me) so a full scale ground war can be launched in order to snuff out any optimism over common sense prevailing.  We wouldn't want any of that to contribute into a bullish environment now would we...   unfreaking believable. 

Mon, 11/19/2012 - 10:24 | Link to Comment spastic_colon
spastic_colon's picture

must be bonus season

Mon, 11/19/2012 - 10:27 | Link to Comment slaughterer
slaughterer's picture

 oh yeah, "bonus season".  Who could have predicted?

Mon, 11/19/2012 - 11:01 | Link to Comment tbone654
tbone654's picture

at S&P 1392 the trend turns up...  at this moment, we're at 1384...  c'mon big bonus'

Mon, 11/19/2012 - 13:46 | Link to Comment francis_sawyer
francis_sawyer's picture

No Whammies! (meet the new cast & talent lineup at CNBC for 2013)...

~~~

http://www.youtube.com/watch?v=VIJYfvN9954

Mon, 11/19/2012 - 10:26 | Link to Comment TrumpXVI
TrumpXVI's picture

Gold, bitchez.

Mon, 11/19/2012 - 12:59 | Link to Comment boogerbently
boogerbently's picture

What happens when the world wants their gold, they were storing here for safe keeping, back, and they find out the US spent it?

Mon, 11/19/2012 - 10:26 | Link to Comment kaa1016
kaa1016's picture

This was to be expected. We saw a high volume reversal at 11:30 a.m. Friday (at the European close, courtesy of the Boehner/Pelosi short squeeze) off of an oversold market. Now, we have a light holiday shortened week which is usually up anyway. At the end of the week, let's see where we are to possibly set up another short opportunity. Just don't be short this week...

Mon, 11/19/2012 - 10:28 | Link to Comment slaughterer
slaughterer's picture

Everybody is waiting to see if the test of the ES 200DMA will fail.  Until then, we go up.  

Mon, 11/19/2012 - 10:32 | Link to Comment spastic_colon
spastic_colon's picture

with europe having an orgasm today, dow +200 and es +20 eod

Mon, 11/19/2012 - 10:28 | Link to Comment otto skorzeny
otto skorzeny's picture

D-Bags on CNBC should be spouting about upcoming Santa Claus rally soon. If their ratings suck so bad why do they keep doing the same dumb shit with the same dumb asses?

Mon, 11/19/2012 - 10:53 | Link to Comment Big Corked Boots
Big Corked Boots's picture

Because they have nothing else to say?

I mean, you aren't suggesting they broadcast the truth, are you?

I'm waiting for the Kittens and Puppies channel. All cute, fuzzy, playful pets, all the time!

Mon, 11/19/2012 - 11:17 | Link to Comment Bay of Pigs
Bay of Pigs's picture

BlowHorn random quotes,

1) "the valuations look very attractive here".

2) "it's a stock pickers environment, there are opportunities out there".

3) "investors need to have a strategic global perspective to ride out the volitility".

 

Mon, 11/19/2012 - 12:02 | Link to Comment Boilermaker
Boilermaker's picture

Investiment opportunity of a LIFETIME for a LONG term investor.

Mon, 11/19/2012 - 13:47 | Link to Comment francis_sawyer
francis_sawyer's picture

see above ^^^ comment for a preview of the new 2013 CNBC on-air talent lineup...

Mon, 11/19/2012 - 10:30 | Link to Comment scatterbrains
scatterbrains's picture

Plenty of room to snap back towards 1400 in the coming low holiday volumes and PPT pumping..  which is revealed in the move in gold and energy.  I'm wondering to what level congress will pump this thing up while they position for the complete opposite of what their media cheerleaders are instructed to present to the public. Do they wait until hours before the cliff hits to surprise us that there is no deal ?

Mon, 11/19/2012 - 10:29 | Link to Comment ItsDanger
ItsDanger's picture

The US fell off the cliff yrs ago.  We're just in rerun phase now.  Just like Wil E Coyote.

Mon, 11/19/2012 - 10:30 | Link to Comment crawl
crawl's picture

Start of the Santa rally? I'm thinking so. Weak hands sold, shorts clobbered with the stop hunts intraday. Easiest path is upwards, fundamentals be damned.

Mon, 11/19/2012 - 10:45 | Link to Comment SheepDog-One
SheepDog-One's picture

They better watch out with pumping markets, then the fiscal cliff bullshit wont ever get anywhere. 

Mon, 11/19/2012 - 10:30 | Link to Comment jmcadg
jmcadg's picture

But, but, Options expiry is coming up, what are we gonna do?????

Mon, 11/19/2012 - 10:37 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

I was planning on leaving.....if you want to stick around and get killed....go nuts.

Mon, 11/19/2012 - 10:45 | Link to Comment youngman
youngman's picture

I thought that was last week..hence the attack on the PM´s.....to many options in the money...

Mon, 11/19/2012 - 10:48 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

When Ben Shalom found out they forgot to reload the bullets over the weekend....he was super cheesed.

Mon, 11/19/2012 - 10:33 | Link to Comment falak pema
falak pema's picture

As the drums of regional war beat in Gaza and Syria, the drums of WS bypassing the regulator continue to sky rocket.

This world is mad beyond reason, and its sad beyond the limits of rational tolerance :

Shadow Banking Is $67 Trillion Industry - Business Insider

The WMD juggernaut just builds up more momentum. Socialised debt is your problem...the smoke and mirrors is our competitive advantage as the elite behind the tinsel curtain. 

Mon, 11/19/2012 - 10:34 | Link to Comment Quinvarius
Quinvarius's picture

If the S&P is anywhere near its highs, there will be no fiscal cliff resolution?

I don't even know what that means.  But I do know what 85 billion a month in QE means. 

Mon, 11/19/2012 - 10:46 | Link to Comment SheepDog-One
SheepDog-One's picture

$85 billion a month QE means....what exactly? No ones buying it. 

Mon, 11/19/2012 - 11:19 | Link to Comment Sudden Debt
Sudden Debt's picture

this is so freaking depressing... still 3 weeks before I have extra budget to buy...

I hope they intervene and clob it like a canadian baby seal ...

 

Mon, 11/19/2012 - 10:39 | Link to Comment northerngirl
northerngirl's picture

Was there ever a doubt that the can would be kicked down the road?

Mon, 11/19/2012 - 10:40 | Link to Comment PUD
PUD's picture

There is no such thing as "oversold" or "overbought"...wall st buzzwords for the simple minded. 

If a condition such as "oversold" or "overbought' existed and could be quantified then no one would buy "overbought" and no one would sell "oversold"

If these conditions could be known then they would never approach them as only a fool would pay more for or sell for less

It implies that there is one true fixed fair price ordained by god himself and anything either side of that is either "overbought" or "oversold"

It implies that this perfect price can be known and anything either side of it is either "overbought" or "oversold"

There is no such thing as "fair" value..it is was and always will be subjective

There is no such thing as any viable technical analysis

Just one more propaganda con by the owners of the casino

 

Mon, 11/19/2012 - 11:08 | Link to Comment Orly
Orly's picture

Actually, it is a technical indicator that determines an historical price of a given thing relative to itself.  Prices rarely get higher or lower by two standard deviations from the historical price model, say for 28 days (or candles...), or whatever your settings are.

So yes there is such a thing as overbought or oversold.  See CCI and RSI indicators as good examples.

:D

Mon, 11/19/2012 - 11:33 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Nice dodge of the question. Use moar TA trader lingo to bolster your "argument".

Did you miss the part about broken markets and rigged casino?

Oh that's right, there is no manipulation is there Orly? Maybe you can explain the Gold/XAU ratio and why it has failed to reset to historical norms since 2008 (yet gold is $1000 dollars higher)?

Mon, 11/19/2012 - 11:57 | Link to Comment peekcrackers
peekcrackers's picture

Pluss 1 Bay

Paper Humpers like orly love the ass raping they take by algorthmic trading

 They'er sphincter so streched  its just a flow of crap .. just like he/she is doing now .

Mon, 11/19/2012 - 12:52 | Link to Comment Orly
Orly's picture

Relative to itself.

Can you read or do you just like to be a dumbass?

Mon, 11/19/2012 - 11:09 | Link to Comment lunaticfringe
lunaticfringe's picture

Here, here. Finally a spot on comment on the thread.

Mon, 11/19/2012 - 11:17 | Link to Comment Boilermaker
Boilermaker's picture

But, it allows the masses to 'play along', right?  If it was all highly intellectual analysis and commentary then 90% of the dipshits trading would have to take their ball and go home.

This is simply a stupidification for the masses to get the middle class to gamble and provide liquidity.

It works like charm, too.

Mon, 11/19/2012 - 10:42 | Link to Comment Mesquite
Mesquite's picture

Does this mean the bankster tantrum (cuz of election) is over..??

Mon, 11/19/2012 - 10:49 | Link to Comment SheepDog-One
SheepDog-One's picture

No it means the DOW is pumped +100 on a Monday futures ramp based on nothing, except maybe fever dreaming about Black Friday which will be awful, and everyone is right back to thinking all is well. 

Ridiculous.

Mon, 11/19/2012 - 11:12 | Link to Comment TrulyBelieving
TrulyBelieving's picture

What is a fiscal cliff resolution? So we expect the same people whose policies resulted in such chaos to now know a solution? One thing is certain, they have no ideas and no answers, except ones that further their disgusting agenda.

Mon, 11/19/2012 - 10:53 | Link to Comment razorthin
razorthin's picture

if the S&P 500 is anywhere near its highs by year-end, there will be no fiscal cliff resolution.

 

Book it.  This could also mean that the "resolution" will simply be an extend-pretend, because any resolution that involves real tax increases ("revenue" - euphemism of thieves LOL!) or spending cuts will tank the markets.  She's too far gone.  Nothing to do but print.

Mon, 11/19/2012 - 10:49 | Link to Comment dwdollar
dwdollar's picture

Have the politicians come back from vacation yet? I doubt this is because of any fiscal cliff "resolution" either real or perceived.

Sounds more like behind the scene CB shenanigans.

Mon, 11/19/2012 - 10:50 | Link to Comment Boilermaker
Boilermaker's picture

No kidding.  Along with the 'chart reading for the clueless that want to believe in something' non-sense.

It's all an attempt to suck in the marginal intellectuals into believing they can play at a professional level.  Dumb down everything to a point where it's easy to digest for the meaty part of the IQ curve and you have inflows of money.

It's all just a modern three card monte game ran by the elites.  It's a fleecing mechanism and nothing more.

Mon, 11/19/2012 - 10:53 | Link to Comment Barry Mcokiner
Barry Mcokiner's picture

Turkey Day false flag!!

Mon, 11/19/2012 - 11:05 | Link to Comment surf0766
surf0766's picture

Hope rallies are back. When there is nothing else, fake hope rules.

Mon, 11/19/2012 - 11:29 | Link to Comment SmallerGovNow2
SmallerGovNow2's picture

When fundamentals are falling, there's always hope...

Mon, 11/19/2012 - 11:09 | Link to Comment Lost Wages
Lost Wages's picture

Someone doesn't want silver to go over $33 at this particular moment.

Mon, 11/19/2012 - 11:31 | Link to Comment SmallerGovNow2
SmallerGovNow2's picture

I added to my stockpile when we last went down to $28.  Think there will be another opportunity under $30 or are we past that point now?  Would like to add some more...

Mon, 11/19/2012 - 11:35 | Link to Comment lakecity55
lakecity55's picture

I took delivery of more last week.

I think it would still be a good buy at 34$.

Mon, 11/19/2012 - 12:22 | Link to Comment Lost Wages
Lost Wages's picture

David Morgan said he doesn't think it will ever go under $30 again, but no one actually knows. ;)

Mon, 11/19/2012 - 11:41 | Link to Comment alentia
alentia's picture

$33 has been violated, could break up today or tomorrow.

Mon, 11/19/2012 - 14:16 | Link to Comment Lost Wages
Lost Wages's picture

At this point I pessimistically believe it will stay up today, but they are going to smack it down again during the Bernanke speech tomorrow.

Mon, 11/19/2012 - 13:22 | Link to Comment bugs_
bugs_'s picture

Hulk....smash can!

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