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Hard Asset Beats Paper In Early Trade

Tyler Durden's picture




 

UPDATE: ES tumbling (down 12 from opening highs)

In early trading the USD is being sold in favor of the Euro and real assets such as Oil (Middle-East tensions) and Gold are bid. Stocks are tailing lower - stable at around unchanged for now - but following the slow risk-off leak of Treasury yields. Volume is what you would expect on Boxing Day but EURUSD wins the craziest market of the day award for behaving like a gap-heavy penny stock when its the largest currency pair in the world... though USDJPY is starting to push higher (JPY weaker). In stocks, AAPL -1.5% and HLF +6%.

Real Assets over paper...

 

and FX markets are getting a little jiggy...

 

As ES cracks through the post-crash lows...

 

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Wed, 12/26/2012 - 12:13 | 3096287 fuu
fuu's picture

Where's Trav? Silver is now down $0.35 from the HoD. It is currently off the lows though so...

Wed, 12/26/2012 - 12:16 | 3096294 Snakeeyes
Snakeeyes's picture

Oil up too. Probably because Obama flew his 747 from Hawaii to DC just to meet with Boehner.

Wed, 12/26/2012 - 12:15 | 3096298 buzzsaw99
buzzsaw99's picture

it looks to me like treasurys and gold are up by similar percentages now

Wed, 12/26/2012 - 12:15 | 3096299 Karlus
Karlus's picture

TPTB need to put a stop to that, quick!

Wed, 12/26/2012 - 12:16 | 3096300 Fredo Corleone
Fredo Corleone's picture

"HLF +6%"

Nice call, Tyler. These "value mavens" read like a book -- akin to a financial-sector penny dreadful.

Wed, 12/26/2012 - 12:21 | 3096313 ZeroPower
ZeroPower's picture

Not many traders at their desks this week it being in between 2 of the biggest holidays. Might see some crazy movements like the S&P afterhours last week and the GBP yesterday. Euribors and Eurodollars are barely trading.

Wed, 12/26/2012 - 12:22 | 3096316 agent default
agent default's picture

Something is up. The Shanghai Gold Exchange has announced the latest margin hike effective 28th of December, due to increased volatility.  Expect the CME to follow.  Something big is going on, and they want to shake people out of the PM market.

Wed, 12/26/2012 - 12:25 | 3096331 Kaiser Sousa
Kaiser Sousa's picture

"Analysts said this move will probably cause investors to sell, since they will have to deposit more funds in order to meet the new margin requirements."

be prepared...their gonna go after the only 2 forms of real money again...

 

http://www.bullionstreet.com/news/chinas-sge-to-raise-gold-margins-to-13...

 

 


Wed, 12/26/2012 - 12:57 | 3096433 Quinvarius
Quinvarius's picture

Raising margins for less than a week and then setting them back?  What kind of nonsense is that?  They try to play it off as normal.  Probably this is related the friggin massive price differences that are popping up between Shanghai and COMEX gold and silver contracts.  Money is flowing out of US contracts and into Shanghai contracts because that is the same thing as getting your gold out of America.  Capital flight is taking place now.  It is going to spread to everything in the USA soon enough.  It will be 1987 all over again when markets crashed due to Dollar devaluation.  Gold will be the ONLY winner in the end. 

Wed, 12/26/2012 - 13:24 | 3096505 savagegoose
savagegoose's picture

very good point. +1

 

Wed, 12/26/2012 - 16:41 | 3097087 Number 156
Number 156's picture

True. I agree that there is capital flight taking place, but what happens when Shanghai cannot make good on those gold and silver contracts?

For those of us who forget:

http://www.zerohedge.com/news/how-chinas-rehypothecated-ghost-steel-just-vaporized-and-what-means-world-economy


...and, Its Gone!

 

Wed, 12/26/2012 - 12:28 | 3096344 tooriskytoinvest
tooriskytoinvest's picture

MARKET ALERT: Stock Traders Are The Most Bullishly Positioned In Six Years While U.S. Post Worst Holiday Sales Since The Recession, Chinese Rating Agency Puts U.S. On Negative Watch, Richmond Fed Manufacturing Start Contracting AGAIN, And Half of America Expects No Deal.

http://investmentwatchblog.com/market-alert-stock-traders-are-the-most-b...

Wed, 12/26/2012 - 12:38 | 3096374 Vint Slugs
Vint Slugs's picture

USDJPY not just starting to push higher but is in full-blown ramp. 

Interestng chart here  -- 

http://eideticresearch.com/uploads/2/8/3/4/2834543/jyen_midway_gap_potl_december_25_2012_.pdf

Wed, 12/26/2012 - 12:46 | 3096397 Fidel Sarcastro
Fidel Sarcastro's picture

Tiffany's (TIF) dropping like a pair of panties, when she sees her lil blue box.   

Wed, 12/26/2012 - 12:47 | 3096400 MFLTucson
MFLTucson's picture

Con game!

Wed, 12/26/2012 - 12:48 | 3096403 Quinvarius
Quinvarius's picture

Gold gets a shakedown, and all the inflation hedge money rolls into oil for a few weeks.  I call that success.  Great job.  Just what the world needed. 

Wed, 12/26/2012 - 13:13 | 3096476 caimen garou
caimen garou's picture

before winter storm euclid I stocked up on paper assests,toilet paper that is!

Wed, 12/26/2012 - 15:07 | 3096750 adr
adr's picture

Herbalife will turn out to be nothing but a giant scam with a tens of billions in debt marked as assets. The CEO, COO, CFO, and the directors will disappear to collect the couple hundred million they stashed in offshore accounts. The Herbalife distributors, if they actually exist, that put thier life savings into cancer causing bullshit herbal supplements, will be stuck with garages full of expired garbage they can't sell with a few people saying, told you so.

For a company supposedly bringing in as much revenue as Under Armour, I find it odd that I have never seen a Herbalife product, nor have I ever met a Herbalife distributor or even seen a single advertisement for the product. I have however driven by the Herbalife corproate complex in LA that is the size of the Progressive insurance complex in Beachwood, OH. Right there is enough to raise every scam flag in the book.

But no, Wall Street and Jim Cramer never endorse scams...

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