Is This Why Gold Dumped And Stocks Pumped Today?

Tyler Durden's picture




 

In the pre-market this morning, Gold had outperformed the S&P 500 by over 200bps for the month. By the close today (month-end settlement T-3) - given how synchronized gold and stocks have become - Gold and the S&P 500 will be perfectly unchanged for the month. Whether this morning's plunge in Gold (and rip in stocks) was the unwind of a major hedged position (or vice versa) is unclear - but the coincident reaction around the election suggests today's Gold move (and stock move) had a lot to do with each other - no matter how much they are blamed on cliff schizophrenia...

S&P in ounces of gold - unch for the month now thanks to today... equities were bid up into the election (outperforming Gold by over 4% in the first few days), gave it all back and then some as Obama's election was announced - to underperform by over 4%; the last few days of silence from DC and today's snap managed bring the two Fed-sensitive markets back together again...

 

as they recoupled this morning...

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Wed, 11/28/2012 - 16:32 | 3018365 NEOSERF
NEOSERF's picture

Pretty clear from today's turnaround based on nothing but hot air that when the photo op for the deal is done in a week or so that the markets will be off to the races.  Greece is fixed, Santa is coming and consumers can spend like there is a tomorrow sans cliff....

Wed, 11/28/2012 - 16:33 | 3018376 rajat_bhatia
rajat_bhatia's picture

fuck this shit market!!!!

Wed, 11/28/2012 - 16:45 | 3018413 flacon
flacon's picture

Keep in mind we don't have save-and-consumers, we have BORROW-AND-CONSUMERS. Big difference. 

Wed, 11/28/2012 - 16:52 | 3018434 Comay Mierda
Comay Mierda's picture

<----- SAVE - AND - GOLD

Wed, 11/28/2012 - 17:36 | 3018445 TruthInSunshine
TruthInSunshine's picture

13000 Dow Rally Cap on! C'mon, Mr. Centrally Planned Market...I think you can, I think you can...(all the way back to 1999)

[We'll not discuss the Naz - that's a sore subject]

Fractional Reserve Bankster's Paradise

by Benny & The Inkjets

As I walk through the valley of the shadow of debt
I take a look of my life, and realize there's nuthin' left
'Cuz I've been brassin' and laughing so long that
Even my laid off BofA teller thinks my mind's gone


But I ain't never crossed a central bankster who didn't deserve it
Used to cap them in the ass, you know that's not unheard of


You'd better watch how you're talking and where you walking

I really hate to trip but dope fiat took my hope

What was I thinkin', should've bought more gold

 

As they print I see myself in the ink smoke, FOOL.
I'm the kind of g that little homies wanna be as I swagger up near 33 Liberty
Like on my knees in the night sayin prayers under Marriner Eccles street lights

Yeaaa...

[Chorus]

Been spending most their lives livin in a Fractional Reserve Bankster's Paradise

Been spending most their lives livin in a Fractional Reserve Bankster's Paradise

Keep spending most their lives livin in a Fractional Reserve Bankster's Paradise

Wed, 11/28/2012 - 18:18 | 3018688 Panafrican Funk...
Panafrican Funktron Robot's picture

All I know is that I was pretty happy to get the discount today.  Bought 2 more oz.  Then I tripped while I was walking over a bridge on the way home, and dropped it in a river, never to be seen again.  I have the worst luck!

Wed, 11/28/2012 - 18:27 | 3018697 TruthInSunshine
TruthInSunshine's picture

People should put their firearms and precious metals in waterproof, floating bags when on their routine, weekly boating excursions, but that does raise a set of practical difficulties all onto itself, to be fair.

Wed, 11/28/2012 - 19:53 | 3018921 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

My cousin, Omar, told me he started reading Zero Hedge a few months ago (congrats Omar) and has come up with a brilliant plan. Brilliant he says.

He has been following the comments section and realized that so many people have lost their precious metals in boating/canoeing accidents that he just bought some Scuba gear and an underwater metal detector and won’t tell me until he gets to the hot spot to seek out the lost treasures at the bottoms of lakes and rivers.

Omar called about an hour ago and said he’s in….…..Tippecanoe County in Indiana and is convinced that he will be wealthy.

I said Omar Fahking Ghosh (that’s his name you know) don’t you realize that Indiana is huge and has soo many lakes and rivers you’ll never find these lost treasures and besides how do know it’s all there in Indiana?

He said Ali don’t be so stupid, why would they call it Tippecanoe if that wasn’t what was happening.

Good Luck to you Omar. 

Wed, 11/28/2012 - 21:10 | 3019087 This just in
This just in's picture

Please tell Omar, if he finds some gold, it's mine.  I lost it in a canoe accident some years back.  I can identify it ,too.  It's yellow, shiny, and stores wealth really well.

ALso tell him I'll split the postage with him when he mails it back to me.  I have forever stamps.

 

 

Wed, 11/28/2012 - 21:47 | 3019159 A Nanny Moose
A Nanny Moose's picture

Tell Omar to refrain from poaching my rightfully poached, lost treasure.

Thu, 11/29/2012 - 00:58 | 3019427 TruthInSunshine
TruthInSunshine's picture

Poor Omar. He's a sad combination of very motivated yet hopelessly naive.

Wed, 11/28/2012 - 16:57 | 3018451 semperfi
semperfi's picture

more like rapers and sheepers

Wed, 11/28/2012 - 18:14 | 3018672 vast-dom
vast-dom's picture

selling gold to buy shit = inverted alchemy

Wed, 11/28/2012 - 22:08 | 3019198 rehypothecator
rehypothecator's picture

Another kind of inverse alchemy is selling gold to buy lead (and certain additional amounts of brass and cordite).  

Wed, 11/28/2012 - 21:06 | 3019079 hamstercheese
hamstercheese's picture

....how do you really feel?

Wed, 11/28/2012 - 21:43 | 3019145 philipat
philipat's picture

@"fuck this shit market!!!!"

 

It's not a market any longer . And Gold/Silver were sold down (Naked Short papar) by the Bullion Banks, most notably JPM, at the COMEX open in a coordinated dump to discourage longs from standing for delivery ahead Fridays First Notice Day (FND) for taking delivery. Done on a Wednesday so that the OIT, which runs weekly through Tuesdays, can be adjusted before it is published again next Tuesday.

Wed, 11/28/2012 - 22:20 | 3019213 Fred Hayek
Fred Hayek's picture

Exactly.
The only way that the S&P and gold are coupled is that the same people are behind one of the being manipulated up as much as possible and the other being manipulated down as much as possible.

Wed, 11/28/2012 - 16:40 | 3018400 The Limerick King
The Limerick King's picture

An oldie but a goodie...

 

I've noticed a strange situation

The spot gold and DOW correlation

It's easy to see

The Powers That Be

Have ordered this manipulation

Wed, 11/28/2012 - 16:47 | 3018420 bigdumbnugly
bigdumbnugly's picture

looks like they're in dow 13k or bust mode this afternoon.

Wed, 11/28/2012 - 18:16 | 3018668 Albertarocks
Albertarocks's picture

You got that right.  A guy on BNN this morning was pointing out that there was a gigantic batch of gold put options purchased yesterday and needless to say, although he was disgusted with the manipulation, he tried with all his might not to call it that.  You know... political correctness and all.  But he was steamed at the banks, big time.  Here's that interview:

http://watch.bnn.ca/commodities-report/october-2008/commodities-october-...

 

Thu, 11/29/2012 - 00:38 | 3019400 Rockerchic
Rockerchic's picture

Well, it's pretty obvious the stock market only pumps straight up after it starts to tank RIGHT ON THE HOUR, usually 10am. I also notice a lot of pumps at 11am and 1pm. Totally a pattern there.

Wed, 11/28/2012 - 16:32 | 3018366 Imminent Collapse
Imminent Collapse's picture

Coupled?  Are you crazy?  Gold is manipulated, as is silver.  Don't try to explain its movements using any rational basis.  Wake up!

Wed, 11/28/2012 - 16:37 | 3018392 ptoemmes
ptoemmes's picture

The manipulation has recoupled - perhaps?

Wed, 11/28/2012 - 16:47 | 3018423 spastic_colon
spastic_colon's picture

no manipulation in currencies....no siree

 

Wed, 11/28/2012 - 16:54 | 3018442 Orly
Orly's picture

I know!  The Euro floats all on its own because...

because...

well, because it just may be the finest currency in the world!

Wed, 11/28/2012 - 17:09 | 3018487 Yen Cross
Yen Cross's picture

 The euro is a like a " widget"...  In demand ,so long as there is demand.  When demand wanes,  bills have to be paid...

   How those bills get paid is really scary!  History is replete with similar scenarios...  They are usually BLOODY!

 Human life loses it's value very quickly, when wealth is at stake... past  Roman & Persian empires exemplify that set of "human traits"...

Wed, 11/28/2012 - 17:25 | 3018529 Jonas Parker
Jonas Parker's picture

Coupled?  Are you crazy?  Paper Gold is manipulated, as is  paper silver.  Don't try to explain its movements using any rational basis.  Wake up!

 

There - I fixed it for you!

Wed, 11/28/2012 - 16:33 | 3018368 docj
docj's picture

Not manipulated at all. No sir, not one little tiny bit.

(spits)

Wed, 11/28/2012 - 16:33 | 3018371 vinayjha
vinayjha's picture

Inflation will continue to rise with central banker printing 

http://goo.gl/boeih

Wed, 11/28/2012 - 16:33 | 3018374 lemonobrien
lemonobrien's picture

those in power, and der childrens, will do everything they can to maintain control. They will lose, and as this reality becomes real, they will prepare to escape, while at the same time, keeping a damper on the fire.

 

Wed, 11/28/2012 - 17:19 | 3018514 NotApplicable
NotApplicable's picture

Nah, at the first sign of danger, they'll blow up the whole place to distract us.

Wed, 11/28/2012 - 16:34 | 3018375 Robert-Paulson
Robert-Paulson's picture

It's all about Boner's comments..........wake up, bitch!

Wed, 11/28/2012 - 16:34 | 3018377 DoChenRollingBearing
DoChenRollingBearing's picture

Which would you rather have in five years?  An equal amount of today's money in the S&P 500 or the same amount in physical gold?

Perspective, bitchez!

Wed, 11/28/2012 - 16:35 | 3018378 Buzzworthy
Buzzworthy's picture

Why is it that on a site that attracts goldbugs this question even needs to be speculated on?  Check the CME options expiry calendar.  Gold and silver raids ALWAYS take place 24-36 hours on either side of options expiry.  What other asset can you name that goes down when fundamentals scream it should be higher?  What other asset goes down vertically?  Why even ask this question?

Wed, 11/28/2012 - 16:49 | 3018425 Toolshed
Toolshed's picture

Because we are just not as smart as you are, obviously. Duh.

Wed, 11/28/2012 - 17:10 | 3018486 ParkAveFlasher
ParkAveFlasher's picture

Still shiny.

Wed, 11/28/2012 - 17:29 | 3018515 BlackholeDivestment
BlackholeDivestment's picture

Buzz, is this not the ''Moral HaZZard Top'' reality of the Whore of Babylon riding the Beast, the rehypothicated algo quant want of the short term gains which define(s) the offer(s) of temptation and thereby the slaughter of labor within the borderless Great Wal Mart of China and the Suicide Vampire Squid?  http://www.youtube.com/watch?v=qJr8PuZ20Ck 

Cremation of Care ...bitchez. Just shoot a baby why don't yuh, stomp on Grandma's neck until her brains squeeze out of her skull. 

Wed, 11/28/2012 - 17:20 | 3018517 NotApplicable
NotApplicable's picture

Page clicks? :\

Wed, 11/28/2012 - 17:25 | 3018531 Bansters-in-my-...
Bansters-in-my- feces's picture

I agree Buzzworthy.

 

Sometimes I think the Tyler(s) have been hijacked.

To not mention this is side steping the real issue.

Wed, 11/28/2012 - 17:55 | 3018619 viahj
viahj's picture

constant influx of new readers to educate?

 

Wed, 11/28/2012 - 16:34 | 3018379 Boilermaker
Boilermaker's picture

HILSENRATH ALERT ON WSJ....

LMFAO, incredible.  Jesus Christ, when does Bagdad Bob jump in and declare things are wonderful?

Wed, 11/28/2012 - 16:55 | 3018448 Bastiat
Bastiat's picture

They had Buffet on NPR yesterday afternoon.  His bullish on the economy crap was embarassing.  There was a supposed to be continuation of it today.  It's a PR campaign.

Wed, 11/28/2012 - 17:11 | 3018492 Boilermaker
Boilermaker's picture

Well, he can really relate to the commoners since he's 'one of them' at heart.  With that folksy hay-seed speaking style and 'aw shucks' mannerism, who wouldn't believe his outright bullshit?

Wed, 11/28/2012 - 18:41 | 3018746 TruthInSunshine
TruthInSunshine's picture

Rumor has it that he was abandoned as a newborn on a Harlem stoop, in the freezing winter of 1965, and raised by a poor but generous black family, just like Nathan Johnson.

Wed, 11/28/2012 - 22:25 | 3019223 Fred Hayek
Fred Hayek's picture

Well . . he is a jerk.

Thu, 11/29/2012 - 00:59 | 3019431 Oldballplayer
Oldballplayer's picture

I saw that. Did you want to ring that dried saggy old chicken neck? You ant to pay more in taxes? Write a friggin check. What a douche.

Wed, 11/28/2012 - 16:35 | 3018380 disabledvet
disabledvet's picture

California Beach Pundit had an OUTSTANDING market call on this at Seeking Alpha yesterday. "the mind races with possibilities"

Wed, 11/28/2012 - 16:46 | 3018417 fonzannoon
fonzannoon's picture

No offense but that article was retarded. Gold went down one day after he made that call so if you want to give that guy credit, feel free. But his reasoning that gold will go down is....

"if the Fed were to even suggest that it is contemplating a reversal of its quantitative easing (which could be accomplished by raising the rate it pays on reserves, or by draining reserves), then gold would be quite vulnerable to losses. Gold today is a very expensive inflation hedge."

Last I check Ben was about to double down on QEinfinity.

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