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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Fred Hayek's picture

And, aren't the ranks of those who could actually believe that the Fed could stop indulging in QE miniscule by this point?

mdtrader's picture

Or to put it another way, the bears and the gold bugs all got rinsed together.

ThirdWorldDude's picture

Not quite... Discount time, bitchez!


Wednesday's the stackers' Black Friday.

Yen Cross's picture

 Thanks Tyler. I sure as fuck, am perplexed over that one.  Risk F/X laughed it off to. The aud/usd went parabolic,and has been pumping for 5-6 hours! Oil didn't ramp either.

  Must be the the bond market/ NOPE!  T-10 down 2.4 basis points.

fonzannoon's picture

Occams Razor Yen. That's about it.

Yen Cross's picture

  These markets are like watching a bunch of thugs fighting over a pair of last years Air Jordans... You can even go to the mall with out being "ass raped"!

  My N.Y. morning trade was small Fonz. I wanted to add to the short, as I saw a topping pattern in risk!

I'll just let it retrace and cut my losses. This exemplifies my earlier comment.

  You have to monitor your trades 24-7 on a platform, or you will be taken to the wood shed!

fonzannoon's picture

I have no idea how you guys do it. I would lose my ass in an instant.

NotApplicable's picture

Something... something... pennies... something... something... bulldozer.

If you don't hold it, you don't own it.

Meanwhile, the "I'll never get Corzined crowd" continues to breathe life into the scam of a market.

101 years and counting's picture

how nice of boner to be positive right as spx touches the 200day.  seriously, they dont even try to hide they are now slaves to the markets.  pretty sad...........actually, really, really horrifying what this country has become.



dumpster's picture

this artickle skips over the 1000 times gold has been down at 8.10 each day and trys to correlelate it to his shit for brains

whotookmyalias's picture

I am shocked, shocked to find out that manipulation is going on in here.

SheepDog-One's picture

Right, and where is all the convential 'wisdom' all year long that said it was all just desperation pumping until the election? Its still here...and looks like they're just ramping it up.

tallen's picture

According to the incredibly smart people on CNBC, one seller decided to take profits which is the reason for the fall. I believe everything said on CNBC, they're all so smart, how does one become as smart as them?

anarchitect's picture

ZH's speculation about a hedge fund unwind was unbecoming. From CNBC, fine, you expect that kind of drivel. But no professional investor should be so imbecilic as to put a fishing line on a chart.

Fred Hayek's picture

In roman times, they sometimes believed that special wisdom was to be derived from analyzing the patterns on the ground of the entrails of slaughtered animals.

The on air personnel at CNBC have eliminated the messy slaughtering and the unreliable animals. They all have their heads up their asses so as to examine their own innards, purporting to derive market wisdom from these cranial colonoscopies.

Yen Cross's picture

 Yea baby, ALGO's create liquidity, like jizz in a sperm bank!

gjp's picture

The intraday performance of NASDAQ bubble stocks through the run of the last two weeks has been incredible, up and to the right from 10:30 every morning.  The manipulators appear to prefer vapor stocks like AMZN and CRM as their 'monetary transmission mechanism' and evey front-runner has got the message

PAWNMAN's picture

Absolutely NO reason why Gold shouldn't have crushed it's inflation adjusted high of $2300 years ago from all the Central Banking folly. Manipulation is the only conclusion a sane person can draw.

Bastiat009's picture

So gold must go up because central banks can manipulate the price of everything ... including gold. Weird logic.

PAWNMAN's picture

They can only keep it down for so long. Don't forget Gold is on a 11 year bull run. Eventually the day of reckoning will come.

lasvegaspersona's picture

Gibson's paradox and the implementation of procedure to ensure that gold price stays low to forestall dollar inflation....that is all this is....just ask Larry Summers...

fuu's picture

I see what you did there...

Confundido's picture

Is this not the easiest explanation? Turkey was going to pay Iran in gold for nat gas exports. But the cartel got angry because they were left out of their fair share and therefore, the US threatened to sanction Turkey if they did. Someone had been accumulating gold for that purpose and somebody knew that, as it would no longer be required, it would have to fall and frontran the move.

Another variation of the theory is that Iran received that gold, had to fire sell it and was frontrun....

Did we not see the same when Khadafy had to sell his?

Orly's picture

Don't forget that the Chinese also just bought a few metric tonnes of the stuff, too.  We're starting to get the picture now.

I hope you are, anyway...

IEVI's picture

The problem with your explanation and all the other rational explanations is this...there is only one reason to sell 2 million ounces in 5 minutes and that is to intentionally drive the price lower.

PUD's picture

The American casino mentality at work. Why so shocked? Everything is a casino now...powerball, markets, bonds, metals...choose your game, lay down ur bet!

NotApplicable's picture

Markets are not a casino, as they are filled with games of chance.

The phrase you're looking for is "Three Card Monte."

In an alley.

Dimly lit.

With lots of unsavory people gathered around.

whotookmyalias's picture

And if you are playing in Paris, they won't even let you pick the right card if you can catch on to their gimmick.  (saw a co-worker try this once).

Confundido's picture

On the unwind of the long gold/short yen the appreciation of the yen so significant to have caused the sell off in gold? Not sure...Or was someone trying to cause it by selling the gold? :)

Village Smithy's picture

TBTB know that as long as there is no alternatve to UST's and equities they can borrow as much as they want and devalue the USD as much as they want. BUT, if an alternative were to become viable, like gold, then money would flood out of these over valued and over rated (AAA really ?)assets. I'm thinking that if inspite of this Central Bank manipulation gold continues to hold its own with the S&P then the CBs are losing their grip. 

Lewshine's picture

Dow is currently at 12976 (w/ 14 minutes to close)- If all things remain in Ben's hands, as they always do, that would mean the Dow close should be 13K, give or take a point. What a frikkin sham joke!!

SheepDog-One's picture

Also a whole year of 'It's all for the elections, after then, there will be reality re-entering' to explain all BS data and manipulation was all just garbage....they'll do whatever they want whenever they want until the next planned flase flag terrorist attack reshuffles the deck again.

moonstears's picture

Someone has to..."Gold Bitchez!"

p.s. Gold becomes a tier one asset 01Jan2013. This means that it can be counted, as an asset on books, like cash and T bonds, at 100%, NOT 50%, as previously. If the banks "rule the fuckin' world" then gold doubles in value as an asset starting 01 Jan. Think about what I'm sayin' here. NOT surprised to see $1680s prior. BTFDs.

p.p.s Anyone with more info/intimate knowledge on this tier one gold holdings development, please feel free to elaborate.

moonstears's picture

Nope. Still love the shiney, just thinkin' this drop's quite logical, maybe even more prior to 1 Jan, If you get smoked prior to the first of the year, it's your own fault IMO. Get physical, and carefree,  or get short with stops, if you are ballsy, or crazy. This too will pass(the drop).

ParkAveFlasher's picture

no no, I mean you did this wrong:


ParkAveFlasher's picture

The point being, not to complicate a simple, elegant, beautiful thing.

Bastiat009's picture

Ytd S&P is up 12.5%, gold up 9.7% (dividends not included) ... Nasdaq is up 17.1%. Five weeks to go. US$ and euro are still alive. Obama is still president. Banks still rule the world. Facts, sometimes, stand in the way of a good story, as good as the story may be and as idiotic as the facts may seem.

SheepDog-One's picture

Or, how dumb the story is. If this was a novel I would have thrown it away long ago.

lasvegaspersona's picture

the 'divdend' of gold (physical) is that if you have it in your possession then you will still have something when paper wealth goes wobbly...

SheepDog-One's picture

So in other words its all totaly meaningless and owned totaly by the FED, including really no point in paying any attention to any of it at all....where they want everything is where they'll put it, and you're just along for a back seat ride no matter what you do.

fonzannoon's picture

I have no doubt they will fumble it Sheep. It's just a matter of time.

TruthInSunshine's picture

Year to date, the algos and PPT have been swapping assets with each other at the speed of collocated fiber optics.

mdtrader's picture

Those Algos are run by the big banks and governments, and they want your money.

In the words of WOPR itself  "Strange game. The only winning move is not to play."


SheepDog-One's picture

Well then if thats whats going on, at least I can feel some #WINNING since they're definitely not getting MY moneez at least.