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Stocks Drop Most In 2013 As Gold Is Crucified On The Death Cross

Tyler Durden's picture


A strange sea of red inhabits the screens of many traders and investors across the USA this evening, and all it took was for the FOMC to hint that the punchbowl will have to be taken away at some point in the future. Biggest jump in VIX in 2013; biggest plunge in Homebuilders in 8 months (as TOL misses and Starts were ugly); biggest dump in stocks in 2013; Gold plunges to $1565 and suffers Death Cross; USD soars and crosses above its 200DMA; and oil has frantic flash crash early on. Not a pretty day as stocks drop below the lower edge of their up-trend channel for the year and test critical support amid the highest volume of the year. The four words on everyone's lips this evening: Where is Kevin Henry?

S&P 500 futures uptrend is broken...


and remains at a critical support...


as Gold 'death crosses' - with its 50DMA crossing under its 200DMA...


Stocks still have quite a way to go to catch down to credit for the year but our HYG-SPY compression trade is doing well so far...


and VIX seems far less excited - as today saw its biggest snap higher since the 12/28 fiscal cliff concerns...


Homebuilders were monkey-hammered its 50DMA


As the initial selloff in rates post-FOMC hurt Utilities but then the hawkishness sent risk-on sectors reeling...


USD soared as GBP was dumped early on - post FOMC strength was sustained...


Charts: Bloomberg and Capital Context

Bonus Chart: If credit turns out to be even modestly correct - which we have seen again and again - then the following relative sector rich/cheap from Capital Context provide some insight into just how frothy stocks have become (relative to credit). Remember this is not saying that, for instance, the S&P is 2.1% overpriced - it is saying the S&P is 2.1% ahead of credit markets (and as selling progresses so credit will likely feel further pain). The biggest divergence is in homebuilders...


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Wed, 02/20/2013 - 17:12 | 3261111 EclecticParrot
EclecticParrot's picture

To be sung to the melody of your favorite show tune, belted out Ethel Merman style:



I love you, love you, love you


No ETF’s above you


You enriched my life today


They all said that you were shit, 

calling for a (gasp) reverse split

But one day each month your return’s oh-so-bold,

then you bite all the dorks 

doing overnight holds



You’ve brought me closer to

retirement day

No more hot dogs, from now on it’s

brick-sized fillets

smothered in white truffle mayonnaise !


TZA:   you’re the best !


{Ah, well.  Now that we’ve had our brief moment of fun, replace “TZA” with “TNA” in the above lyric and prepare for the inevitable Russell re-ramp toward 1000}

Wed, 02/20/2013 - 17:21 | 3261150 Pladizow
Pladizow's picture

Comex paper gaming Fed speak!


This week could mark a historic bottom.

But trades are like women - you never get the bottom you want!

Wed, 02/20/2013 - 17:29 | 3261186 I think I need ...
I think I need to buy a gun's picture

please read stewart thomsons piece this week on i don't think i can expalin any better then that

Wed, 02/20/2013 - 17:55 | 3261266 Buckaroo Banzai
Buckaroo Banzai's picture

We've all known for years the way this would all end: a colossal liquidity-driven washout in gold and silver, driving out the all but the strongest hands, and breaking all support levels.

What happens after that is the great unknown. But given the alternatives, I'd rather hold the gold than the worthless fiat.

Wed, 02/20/2013 - 18:30 | 3261389 tbd108
tbd108's picture

For those of you who are fans of Jim Sinclair (I am myself), he said today that by late March (of this year) that this period of gold/silver manipulation will be past.

Wed, 02/20/2013 - 20:30 | 3261710 Jungle Jim
Jungle Jim's picture

God, I *hope* that's true, that Jim Sinclair is right, I mean. I *might* be able to hang on by the skin of my teeth *barely* that long -- another four to six weeks -- before I have to start selling my PM stacks (at a HUGE loss) just to pay the rent and keep the utilities turned on. I sure don't have a year, let alone *years*. :o(

Wed, 02/20/2013 - 21:52 | 3261904 LongBalls
LongBalls's picture

Dig through your crap....You have plenty of other things to sell.

Thu, 02/21/2013 - 01:08 | 3262326 Jungle Jim
Jungle Jim's picture

I already sold everything except a couple of guns. I even sold several guns. I just kept the ones I thought I might really need in a pinch. I sold my new car. I just kept the old paid-for "beater."Oh, wait, I have a couple of swords here. I used to collect those for the heck of it. I'd sell them now too, but (as with my PM stacks) I would lose HUGE amounts of money on them. They're actually pretty good swords, though, at my age, I don't suppose they're much use to me.

Wed, 02/20/2013 - 18:38 | 3261403 eatthebanksters
eatthebanksters's picture

Maybe, just maybe, the kids at the Fed are sending a message to the party boyz and girls on the Hill that its time to get serious about dealing with the debt from the executive and legislative side of things.  No more $1,000 golf lessons while Rome burns and maybe that stop payment for paychecks in Congress will be long term.

Wed, 02/20/2013 - 19:00 | 3261462 tbd108
tbd108's picture

It would be nice if such a message wasn't just propaganda however since the only way to really rein in the debt would be to stop the overseas wars (which is not possible given the bankster interest and the millions of Americans that have no problem with murdering innocents everyday with drone warfare) and curb welfare (which is not possible given the votes for it). Let's face it, the US is screwed.

Wed, 02/20/2013 - 19:14 | 3261503 boogerbently
boogerbently's picture

They used the term "Death Cross",.....the bottom is in !

Wed, 02/20/2013 - 19:47 | 3261573 Supernova Born
Supernova Born's picture

Good luck with that crucifiction.  Gold is the alpha and the upsilon.



Wed, 02/20/2013 - 20:14 | 3261657 WmMcK
WmMcK's picture

And the omega, even.

Wed, 02/20/2013 - 20:16 | 3261663 Say What Again
Say What Again's picture

Some one was asking where is Kevin Henry?

I'm guessing that you're not referring to this guy --

Kevin Lerell Henry (born October 23, 1968) is a former American football defensive lineman who played eight seasons in the National Football League for the Pittsburgh Steelers. He played college football for Mississippi State University.

  1. ^ Online World of Wrestling


Before you monkey hammer me, I know that you really were referring to the punk that works for the FED. But who knows -- maybe they are one in the same?!?!?

Wed, 02/20/2013 - 22:17 | 3261960 Edmon Plume
Edmon Plume's picture

Not that it wouldn't help to do that, but "defense" spending alone wouldn't cure anything.  Certainly, it's a lot higher than is commonly lumped, due to black budgets and ancillary spending being left out of most metrics, but you'd have to completely shut down government - ALL of it.  And in fact, that still wouldn't pay the debt.

Yes, the US is screwed.  Not because the government couldn't shut itself down, but because they will choose one or both of the following paths:

1.  Inflate/devalue to pay off debt.

2.  Steal from the citizens to pay off debt.

Note that in scenario #2, #1 will happen anyway, unless spending is reigned in, which means it will happen anyway.

Note also that in scenario #1, #2 is baked in the cake, because devaluing currency by increasing money supply is stealing, though some call it a stealth tax.


Ironically, these scenarios will lead to a government collapse anyway.

Let's make sure that what replaces it is a free system.

Wed, 02/20/2013 - 20:06 | 3261638 Confundido
Confundido's picture

Just read it. Thanks. This Stewart Thomson is nuts. It's insane. He's got no fucking clue. ..."...government treasury departments are moving away from quantitative easing involving bonds, and towards QE involving gold...." WTF???? You think these fucking Keynesians have any clue? How the fuck are they going to buy gold? They're broke! Who is this guy Stewart Thomson? Why is he allowed outside the nuthouse?

Wed, 02/20/2013 - 18:03 | 3261306 LongBalls
LongBalls's picture

They clearly do not have Germany's gold.

Wed, 02/20/2013 - 18:50 | 3261434 Jack Napier
Jack Napier's picture

But now they can buy it on the open market for cheaper and meet their obligation to deliver over the next 7 years.

Wed, 02/20/2013 - 22:00 | 3261922 disabledvet
disabledvet's picture

funny how Venezuela asked for all their gold back just before hyperinflating their (uber oil) economy to oblivion. "yeah...our Government got its gold back. Sure showed 'dem bankers and shit." (that'll be 1 trillion bolivars for your loaf of bread amigo.) will never deny the value of gold...but "discounted cash flow" is looking pretty good ESPECIALLY in this down market where "commodities become for all intents and purposes worthless" and Governments themselves proceed directly to "debt oblivion." see...cuz unlike you and me Governments have THOUSANDS of tons of gold...but without an ability to sustain their debt money "they lose more than all their gold." indeed one could argue "in the lust for mere gold they lost everything." "you gotta come through our military now to get what you thought was your gold back" yes, yes? i mean "there are only two or three functioning banks on the planet right now" yes? "a couple backstopped by the Fed and the other by London"?

Wed, 02/20/2013 - 18:09 | 3261325 Pegasus Muse
Pegasus Muse's picture

"This week could mark a historic bottom."

Ron Rosen thinks we're at/near a turning point.  The bottom is near.  

King World News@KingWorldNews

The Chart That Tells You All You Need To Know About Gold

Wed, 02/20/2013 - 18:56 | 3261455 James_Cole
James_Cole's picture

That chart needs to be expanded a bit...

One of the things zh keeps saying "this time is different" is always wrong. So goldbugs?? 

Wed, 02/20/2013 - 19:55 | 3261612 SaveTheBales
SaveTheBales's picture

Goldbug here.  Well sorta.  I like it cause its shiny, so that makes me a bug.

I don't speculate, OK?  Its catastrophe insurance, nothing more.  Watching the prices dash around is not more alarming to me than watching the prices of Veyrons dash up and down, as I am poor and unwashed. 

We don't expect trees to grow to the sky.  But we're not Hindu Cattle -- we'll pick up a coin if it should make a nice, big V-bottom for us.  (Speak of the devil).

We DO expect gold to do creative things with Price, never mind time.  We don't care.  Its amusing.  You sound upset.  Altoid?

Thu, 02/21/2013 - 05:34 | 3262524 James_Cole
James_Cole's picture

I like buying and selling seasonally but I haven't heard any persuasive arguments yet why this time is remarkably different than the 80s. 

Thu, 02/21/2013 - 08:19 | 3262610 awakening
awakening's picture

Printing moar USD to the tune of $85 billion per month is persuasive enough for me, thanks.

Disclaimer: My 'phyz' is in deep storage. ¬¬

Wed, 02/20/2013 - 19:30 | 3261546 El Oregonian
El Oregonian's picture

Lucky me, I was able to pick up more physical gold and silver to top off my wishlist! Thanks Bernanke... oh, yea... SCREW YOU! But, thanks anyway...

Wed, 02/20/2013 - 21:52 | 3261903 Long_Xau
Long_Xau's picture

Hi all! I'm new here. Looks like just the right time to come.

Thu, 02/21/2013 - 08:56 | 3262683 auric1234
auric1234's picture

Welcome to the party. Go grab the physical, it's yours for the taking. THANKS stupid banksters.


Thu, 02/21/2013 - 09:56 | 3262869 midtowng
midtowng's picture

I hope you're right. I haven't sold my gold yet, but the technicals looks absolutely terrible. Another leg down and I start to sell.

Wed, 02/20/2013 - 17:14 | 3261112 DoChenRollingBearing
DoChenRollingBearing's picture

Wait, lemme check...

Yes, my ounces are still there!

Wed, 02/20/2013 - 17:14 | 3261122 DoChenRollingBearing
DoChenRollingBearing's picture

Paper gold death cross chart in the making...:

Wed, 02/20/2013 - 17:23 | 3261159 Spitzer
Spitzer's picture

Technicals aren't worth following. Rember all those hindenberg omens a couple years ago..



Wed, 02/20/2013 - 17:25 | 3261168 DoChenRollingBearing
DoChenRollingBearing's picture

Hear ya.  "Paper gold"

Wed, 02/20/2013 - 17:59 | 3261286 lasvegaspersona
lasvegaspersona's picture

FOFOA had a great piece earlier this year on the 'support for paper gold' may be going away. This would crash the official POG while the real deal, the shiny stuff, could become impossible to find (I won't be selling mine but I don't think the big guys will either.

Wed, 02/20/2013 - 18:15 | 3261329 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1  

Exactly right.

When the SELLERS go away, that's when the increased demand for physical will blast the prices off.  Higher demand AND lower supply (no sellers).

Wed, 02/20/2013 - 23:29 | 3262131 fockewulf190
fockewulf190's picture

I'm holding my stack to help my family and my biz to get through the Great Reset. Mike Maloney thinks a vast wealth transfer is going to happen, with stackers enjoying unbelievable wealth as long as you sell your phyzz during the right point of the cycle. For me, I stack for insurance, and it doesn't matter if gold goes to $10 grand an ounze and silver hits $500. When those prices are reached, you can expect every nation on Earth with even a gram of gold being held in a foreign vault will be demanding immediate delivery. Of course, this is when the final truth about gold is forced out, and everyone will be outraged. The US will end up being the biggest thief in the world, the fiat in use today will promptly vaporize, and the 600+ trillion dollar derivatives time bomb will then detonate. The financial world will not have any tricks left to save the globalized system in it's current form. Until a new system is generated out of the ashes, it's phyzz that is going to be the only real money left during the transition, and I'll be glad I have some.

Wed, 02/20/2013 - 17:39 | 3261222 Ned Zeppelin
Ned Zeppelin's picture

Hindenbergs work great as long as Bennie isn't firing up unlimited rows of Epsons, then not so much. . . .

Wed, 02/20/2013 - 17:43 | 3261228 Temporalist
Temporalist's picture

Bernanke never met a big floating balloon he didn't like.  (and much like the Hindernberg when they go up in flames "nobody could have seen it coming")

Wed, 02/20/2013 - 17:51 | 3261257 centerline
centerline's picture

TA, short-term elliot wave, etc. finally went out the window a handful of years ago.  Actually may be serving as policy tools at this point.

Wed, 02/20/2013 - 17:56 | 3261275 Harbanger
Harbanger's picture

I do watch for certain key indicators.  I made a few bux today shorting the market.  The fuckers lead us with carrots to the slaughter house, then they rape us.  I have their number, I know their game now.  Your best defense is not to sell your pm's, do nothing.   I would however sell all my long paper, cash out, help the price drop, then continue to buy physical.  In a few months it will all make sense.

Wed, 02/20/2013 - 19:00 | 3261464 Lord Of Finance
Lord Of Finance's picture

Long term bear in stocks + long term bull in gold+historic central bank intervention = throw technicals out the window

Wed, 02/20/2013 - 17:59 | 3261287 Stock Tips Inve...
Stock Tips Investment's picture

GLD challenge seems inevitable that the next level of support located around U.S. $ 148.50. Gold is oversold, but still, this metal may continue to fall. In addition, the environment does not seem favorable. Wall Street seems to be starting a short-term correction. The minutes of FOMC and comments from some of its members, are a pretext was needed to correct.

Wed, 02/20/2013 - 17:15 | 3261113 q99x2
q99x2's picture

The banksters don't need any gold to set the price in the City of London.

They are dropping the price now to hoard it into their private coffers before they get China and Russia to attack the US. Don't think they layed off 1,000 pentagon employees for nothing do you.

Wed, 02/20/2013 - 17:20 | 3261146 Tsar Pointless
Tsar Pointless's picture

China and Russia ain't gonna attack nobody.

We'll do it ourselves via drones and blame it on them, though.

I learneded that in "1984".

Then, we'll really be at war with EastAsia.

Wed, 02/20/2013 - 17:23 | 3261158 lemonobrien
lemonobrien's picture

yeah, you gotta nuke; well fuck you, i gots a fuck'n nuke too bitch.

Wed, 02/20/2013 - 17:37 | 3261213 Dr. Richard Head
Dr. Richard Head's picture

Talk about a Mexican standoff....

Wed, 02/20/2013 - 18:47 | 3261426 Harbanger
Harbanger's picture

Even in a no-win death match, it's never really a no-win.  Fuck the barkers and posers,  to die fighting for a righteous cause is better than slavery,  it's an honor.  When all hell breaks loose and you are faced with reality and a choice, that's when we'll see who's who.  Who the man and who the bitch.

Thu, 02/21/2013 - 02:05 | 3262403 Harbanger
Harbanger's picture

I spoke my mind. ...... will be blessed with a shield of victory.

Wed, 02/20/2013 - 19:23 | 3261531 Freewheelin Franklin
Freewheelin Franklin's picture

Gotta get the population down to about 500,000 for all this to work.  At least, that's what my hardcore CT friends say.

Wed, 02/20/2013 - 17:12 | 3261114 kliguy38
kliguy38's picture

its pretty clear they dont want you in gold...........

Wed, 02/20/2013 - 17:31 | 3261179 DaveyJones
DaveyJones's picture

They don't want you anywhere they don't want you

and they have the thugs to help your decision process

interesting new Keiser Report on petrodollar / gold /  new energy based currency, and food inflation!

Wed, 02/20/2013 - 19:23 | 3261532 Freewheelin Franklin
Freewheelin Franklin's picture


Wed, 02/20/2013 - 17:17 | 3261115 TruthInSunshine
TruthInSunshine's picture

Stawks dropped. This is f'ing unacceptable! So Get To Work, Mr. Chairman!!!

*Bernanke's Virtuously Virtual Circle Jerk Economy

Wed, 02/20/2013 - 17:14 | 3261121 Irelevant
Irelevant's picture

Paper gold is going to zero, get used to it, follow the phiz.

Wed, 02/20/2013 - 17:15 | 3261125 JenkinsLane
JenkinsLane's picture

And where is Simon Potter?

Wed, 02/20/2013 - 17:16 | 3261132 Michelle
Michelle's picture

lol, I'm hedged so well I made exactly ZERO today. Better than losing.

Wed, 02/20/2013 - 17:25 | 3261164 Spitzer
Spitzer's picture


Wed, 02/20/2013 - 17:17 | 3261134 Dr. Richard Head
Dr. Richard Head's picture

So when does the supposed sequester deadline come into play?  The sheep would love to blame any stock market drop on this party of that one. 

Wed, 02/20/2013 - 17:29 | 3261184 Spastica Rex
Spastica Rex's picture

The pols need the fear of Jeebus put in 'em.

Wed, 02/20/2013 - 18:01 | 3261294 Panafrican Funk...
Panafrican Funktron Robot's picture

Supposed to hit next Friday.  This is probably going to be a retread of last December.  

Wed, 02/20/2013 - 17:17 | 3261137 Confundido
Confundido's picture

They cannot print gold, but can certainly invent a credit multiplier for it. If you want to bet they win, you go long paper gold and short miners (long promise to pay, short monetary base of fiat gold). If you want to bet they lose, you go short paper gold and long miners (i.e. short promise to deliver and long monetary base). 

Wed, 02/20/2013 - 17:20 | 3261148 DoChenRollingBearing
DoChenRollingBearing's picture

Or if you are scared of borrowing (like I am), you can just buy the physical gold.  $40 cheaper than yesterday.

Wed, 02/20/2013 - 17:33 | 3261202 DaveyJones
DaveyJones's picture

as it hits

the less promises with strangers, the better

Wed, 02/20/2013 - 17:17 | 3261138 lemonobrien
lemonobrien's picture

they don't like gold (or the people that like gold) maybe we're the new order. 

Wed, 02/20/2013 - 17:20 | 3261139 Temporalist
Temporalist's picture

Fight Club is on!

‘Fight Club’ Is Morphing Into Currency Club

Wed, 02/20/2013 - 17:18 | 3261140 jimmyjames
jimmyjames's picture

Gold has had 22 death crosses since they cut it loose from the dollar-

Gold was at $35 then-

Wed, 02/20/2013 - 17:33 | 3261201 ParkAveFlasher
ParkAveFlasher's picture

This time, is different.

Wed, 02/20/2013 - 17:18 | 3261142 devo
devo's picture

Where does gold land? 1500?

Wed, 02/20/2013 - 17:21 | 3261154 DoChenRollingBearing
DoChenRollingBearing's picture

A) $55,000 or

B) $100,000

are my guesses!

Wed, 02/20/2013 - 17:32 | 3261200 ParkAveFlasher
ParkAveFlasher's picture

Options Expiry Monday. 

$1620 Wednesday.

Wed, 02/20/2013 - 17:24 | 3261162 Schmuck Raker
Schmuck Raker's picture


Wed, 02/20/2013 - 17:25 | 3261166 lemonobrien
lemonobrien's picture

ans India, and in the Rothchilderens private vaults.

Wed, 02/20/2013 - 17:37 | 3261216 DaveyJones
DaveyJones's picture

who is it that recently said there will be a run on the dollar as soon as China has X amount of gold and announces a gold backed chinese currency. Isn't Russia also one of the biggest buyers these days. WWIII will be over in an hour

Wed, 02/20/2013 - 17:42 | 3261232 nope-1004
nope-1004's picture

Jim Willie.


Wed, 02/20/2013 - 17:32 | 3261198 Panafrican Funk...
Panafrican Funktron Robot's picture

It would be surprising if it went much below $1550.  If it did, holy hell are stocks going to catch a nasty bid lower in short order.  As it stands right now, I'm looking at S&P 1350 by mid March.    

Wed, 02/20/2013 - 17:38 | 3261219 Ned Zeppelin
Ned Zeppelin's picture

Fed still printing. . . . jest sayin'

Wed, 02/20/2013 - 19:20 | 3261525 lemonobrien
lemonobrien's picture

people are stupid with money; they can't just let their stack be; always gotta be movin it, play'n with it; and losing money in the shuffle.


i bought at the end of the year, @1672. I ain't selling, but the wife's pissed; she is like everyone else... wanting to move their money around to get 0.5% more in return.


I'm saving now... and I'm tempted, but I don't have enough powder to buys much as I want to buy.

To those who get to scoop up golds at these prices... more to ya; and when you lie back in your eazy chairs, and puffs your J, and sip your single malt scotch... remember me, ans understand, theres another nigga like you in the worlds who understands and appreciates the finer things in life.

Wed, 02/20/2013 - 17:37 | 3261218 Jim in MN
Jim in MN's picture

Dow:Gold 1:1 @ 5,000

Oh, but when>???


Wed, 02/20/2013 - 18:44 | 3261239 devo
devo's picture

I mean this recent sell off.

Wed, 02/20/2013 - 18:56 | 3261440 TWSceptic
TWSceptic's picture

The death cross doesn't mean anything. It's all hype. Read this quote from Kitco:


Wednesday’s price action on the daily chart for April Comex gold futures saw the 50-day moving average cross below the 200-day moving average, to produce what is called a “death cross.” This term has become somewhat popular in recent years, partly because it sounds so ominous. However, the technical significance of this particular moving average crossover signal is not major. In fact, a Dow Jones report Wednesday said that Schaeffer’s Investment Research analyst Ryan Detrick did a historical analysis of the death cross on gold, and he found that on average gold prices actually rebounded somewhat in the weeks and months following the death cross.


We should probably look for a bottom this week. I'm looking at 1500 for major support. 1450 would be the absolute lowest that I can see happening, but you never know what chart JPMorgan et al want to draw.

Wed, 02/20/2013 - 19:45 | 3261585 devo
devo's picture


Wed, 02/20/2013 - 17:20 | 3261143 VonManstein
VonManstein's picture

call me a Silverbug but today close was epic for silver. MAssive volume 8HR doji printed and teh GSR has a huge wick topiing out at 55.

over 110,000 contracts today and ive been expecting the bottom to be put in on an equities pull back..

buying XAG on Hk open and buying some KGs of phyzz tomo..


Wed, 02/20/2013 - 17:21 | 3261151 toothpicker
toothpicker's picture


Wed, 02/20/2013 - 17:37 | 3261215 youngman
youngman's picture

I feel this is the ultimate weeks delivery could be huge....and missed....this was just way to planned out....I think its the OI playing out at the comex...I hope..or London...Asia will buy all of this dip and more...Indians too...I did....its just to good to pass up...noone has quit printing in fact they are all talking about more printing...its off to the currency war we go....

Wed, 02/20/2013 - 17:53 | 3261263 falak pema
falak pema's picture



Wed, 02/20/2013 - 20:05 | 3261631 WmMcK
WmMcK's picture

Would you believe penultimate? - Don Adams

Wed, 02/20/2013 - 20:23 | 3261690 DoChenRollingBearing
DoChenRollingBearing's picture

+ 86

Wed, 02/20/2013 - 17:48 | 3261175 JustObserving
JustObserving's picture

110,000 contracts is 550,000,000 million ounces (each contract is 5000 ounces).  The total silver bullion in the world is only 1000,000,000 ounces.  So 55% of all silver bullion traded in one day in paper.

When Eric Sprott wanted to buy 10 million ounces of physical silver for his fund, PSLV, it took him several months to get it.

Wed, 02/20/2013 - 18:27 | 3261380 SilverMaples
SilverMaples's picture

Well here is the thing, if the long calls for delivery and squeeze the shorts that will give short comex the excuse to settle in cash at these ridiculously low clown paper prices, i.e. the longs will be f...ed. I think some longs understand that and hence this exacerbate the current selling. We are pricing in default at these levels ...

Wed, 02/20/2013 - 17:21 | 3261152 Motorhead
Motorhead's picture

Oh, brother.  I can't wait to hear the excuses from the gold bugs/pumpers on King World News and other sites.

Wed, 02/20/2013 - 17:29 | 3261185 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

I'm hoping some unnamed London Trader with deeply connected sources he cannot betray will assure me that big things he cannot describe are happening that will blow the lid off everything within a "very short time".


The funny thing is that when things do fall apart, on their own timetable completely independent of what any of the bloggers thinks, the truth will probably turn out to be weirder than anything KWN ever came up with.



Wed, 02/20/2013 - 17:33 | 3261193 WhiteNight123129
WhiteNight123129's picture

If you can cite any experience where base money expansion did not result in inflation I will sell my Gold. (Jevons, a serious fall in teh price of Gold -- Gold discovery in Australia and California-- XIX century, Potosi Silver, Spanish bringing Gold from South America). Large base money expansion of precious metals always created inflation. Same with Fiat after 1933 and starting in 1962. No difference in fiat and Gold base money. You expand it, you get inflation. THe problem is that Gold and Silver have already matched the expansion in monetary base (anticipating the inflation for the next 15 years), though when inflation prints 5%, the quantity of the monetary base should expand. The sheeple will see inflation at that point and buy Gold, you sell.

The only reason it is not manifesting itself is because the monetary expansion happened at the same time that the deflation forces were occuring. So we did not have massive deflation as a result. But even under a Gold standard deflation self correct and recedes. When the deflationary forces recede, what happens with the newly created base money units... ?

Wed, 02/20/2013 - 20:10 | 3261646 lemonobrien
lemonobrien's picture

what happens when you needs to borrow a dollar to pay a dollar?

Wed, 02/20/2013 - 18:31 | 3261356 Pegasus Muse
Pegasus Muse's picture

"Oh, brother. I can't wait to hear the excuses from the gold bugs/pumpers on King World News and other sites."

And I can't wait for The Bernank to come out to reassure the plebes (and calm his fellow Central Bankster's frazzled nerves) that all that yellow stuff he's been storing -- just for tradition sake, mind you --- is still present and fully accounted for.  No need to repatriate your gold, Central Banksters --- certainly not all at once!  And all this talk of audits -- just don't go there, 'kay? 

Meanwhile, over at the US Treasury, that 'audit' they did is getting some serious negative feedback:



"We now live in a nation where doctors destroy health, lawyers destroy justice, universities destroy knowledge, governments destroy freedom, the press destroys information, religion destroys morals, and our banks destroy the economy."

- Chris Hedges


Wed, 02/20/2013 - 20:51 | 3261769 joego1
joego1's picture

Love the quote, I got a chuckle out of it. I must be lossing it.

Wed, 02/20/2013 - 17:22 | 3261156 tony bonn
tony bonn's picture

talk about buying opportunity for gold - and only if you take physical posession.....this gold cartel price smash will send only more thousands of tons to the chinese, indians, and about 5th column treason - the nazi banksters have done their only remains to be seen where they will get the gold to deliver it.....last year this time, thousands upon thousands of tons of gold were shipped to china and other far eastern destinations....the official gold import figures are even more presposterous than the bureau of labor statistics and the chinese ministry of truth....i laugh when i read the ignorant lies about official chinese gold imports....god almighty what a crock....

Wed, 02/20/2013 - 17:57 | 3261277 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

"talk about buying opportunity for gold - and only if you take physical posession."


More and more this is my opinion.  A 5% chance I'm waaaaay off and gold is about to collapse back under $1000 and a 95% chance that everything I am seeing proves that things are even worse/more corrupt than the always early bloggers think they are. 

In that case only the physical will help you.  Or your kids since I think the punishment dealt out to "the speculators who ruined the dollar for no good reason" could be as epic as the collapse of the current system itself.  Jim Sinclair thinks this is paranoia and that the elites don't give a shit about the common man and would never think to root us out in retaliation for not buying into their long cons.


This is war and we are men without a country.

Wed, 02/20/2013 - 18:39 | 3261401 Lore
Lore's picture

Re: "the nazi banksters have done their damage"  <-- If the public only knew. The reckoning for these psychopaths will be one for the ages.  The word 'schadenfreude' rings hollow. It will be so satisfying to see the SOBs laid bare.

Wed, 02/20/2013 - 17:27 | 3261170 WhiteNight123129
WhiteNight123129's picture

Come on guys, the Fed will stop printing when inflation starts to kick in. There will be a twilight situation where the hyperinflationists are disappointed and the sheeple believe we are back to normal.

Expansion of monetary base always has resulted in massive price increases. Thought since teh monetary base has expanded 5.6 times, and the price of Silver also 5.6 times, the two are tracking each other.


The problem is that the inflation will be over time not immediately. So Silver and Godl might have priced the inflation to come for the next 15 years already. Though there is a chance to exit when the inflation kicks above 5%, hard to see Gold and Silver covering the monetary base at a lower level at that point.

Wait, we will have another 18 months of twilight bevielderment in Gold and Silver, when inflation kicks, you sell (AND IT HAS ALWAYS WITH MONEY BASE EXPANSION, EITHER WITH GOLD DISCOVERIES OR FIAT).


Wed, 02/20/2013 - 18:02 | 3261299 BigDuke6
BigDuke6's picture

Very interesting.

Thu, 02/21/2013 - 01:20 | 3262346 dr.charlemagne
dr.charlemagne's picture

If the Fed stops printing, the US government will default, the dollar will collapse and gold will be the only salvation.

Wed, 02/20/2013 - 17:27 | 3261177 Randall Cabot
Randall Cabot's picture

Who's Ethel Merman?

Wed, 02/20/2013 - 17:32 | 3261195 Charles Wilson
Charles Wilson's picture

John Galt's party doll?



Wed, 02/20/2013 - 17:40 | 3261223 falak pema
falak pema's picture

she thought she was Jonny weismuller but she floated like the titanic before the ice  and sang like the mermaid. 

She was lucky the shark, JAws, never got to her! 

Wed, 02/20/2013 - 17:40 | 3261225 Temporalist
Temporalist's picture

Everything's Coming Up Roses

Wed, 02/20/2013 - 19:01 | 3261467 EclecticParrot
EclecticParrot's picture

(Sigh)   Guess it's time for me to start using the 50+ section of ZH  ...

(damn youngsters, when I was your age we didn't have computerized trading; if we wanted to buy a stock we trudged through 2 feet of snow with a wheelbarrow of cash to the broker's office, which was always on the 15 th floor.  And please don't post another entry asking "what's a wheelbarrow?" I feel old and useless enough already ...)

Wed, 02/20/2013 - 17:29 | 3261189 adr
adr's picture

It's ok, I'm sure there will be an invisible catalyst to pump ES up 50 points overnight again.

Remember that morning that launched the two months of lunacy?

Wed, 02/20/2013 - 17:29 | 3261190 Melson Nandela
Melson Nandela's picture

tomorrow all the lemmings will be buying the dip. just a short term trading opp., as always. but now i am really relaxed shorting around 933 on the /tf when it double tops. today was a preview of the future...still a few weeks away....

Wed, 02/20/2013 - 17:33 | 3261199 Spastica Rex
Spastica Rex's picture


Wed, 02/20/2013 - 17:38 | 3261206 falak pema
falak pema's picture they say in french meaning...being duped.

goldilocks down to 1578...

Wed, 02/20/2013 - 17:55 | 3261267 jimmyjames
jimmyjames's picture

goldilocks down to 1578...


Actually a low so far of 1558-I have 1556 as support--the same price as 6 short months ago-

Guess we'll have to wait and see about duped huh--we'll talk then?

Wed, 02/20/2013 - 17:57 | 3261278 falak pema
falak pema's picture

talking is free!

speculating isn't...I know...trying to protect hearth n home.

Wed, 02/20/2013 - 18:07 | 3261318 jimmyjames
jimmyjames's picture

talking is free!

speculating isn't...I know...trying to protect hearth n home.

Not a worry in the world...God

Wed, 02/20/2013 - 17:34 | 3261205 alien-IQ
alien-IQ's picture

Tomorrows "surprise" "better than expected" (wink wink nudge nudge) employment numbers will probably send the S&P soaring to glorious new highs because...just fuckin because ok?

The S&P just barely broke below the 10DMA for only the second time in 2013 and is still miles above the 50DMA.

Wed, 02/20/2013 - 18:01 | 3261295 Village Smithy
Village Smithy's picture

I tend to agree. After what we have witnessed over the last 4 years (ie. the conversion of the Russell 2000 to the Obama 2000) I don't think we will return to reality without some major conflagration.

Wed, 02/20/2013 - 17:35 | 3261209 hannah
hannah's picture

man if gold went down to $300 i would buy a shit load....! gold being forced down in price is a good thing......

Wed, 02/20/2013 - 17:40 | 3261224 Dr. Richard Head
Dr. Richard Head's picture

Unless one took delivery of $250k gold last month after paying late December prices.  Potato, potahto, I know, but it still would fucking hurt when looking at these numbers......

Wed, 02/20/2013 - 18:18 | 3261354 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

This is one of the few things that scare me about the precious metals buyers.  

That and the belief that falling prices proves phys and paper are disconnecting somehow which leads to falling comex prices being proof that buying gold/silver yesterday was smart.

It gives me that split second pause and makes me wonder what else these guys aren't thinking about.  I get that in the long run a 10% correction or ever 20% correction means nothing, but its like the further it falls, the more I hear about how the cartel is really on the ropes now. 

If gold falls below $1,500 I would expect mass suicides among commercial comex short sellers according to this narrative.

Wed, 02/20/2013 - 18:27 | 3261381 hannah
hannah's picture

listen dick head...can i call you dick head..? anyway. when the shtf and paper money is worthless, gold will be worth how much an ounce...? if anyone is buying gold for short term trades well they will be whipsawed many times before the collapse.....

Wed, 02/20/2013 - 18:45 | 3261415 Lore
Lore's picture

Put it this way. Taking physical out of the system, nobody can Corzine your ass, and it's easy to sleep at night.

Wed, 02/20/2013 - 17:36 | 3261210 giggler123
giggler123's picture

Well if they are gonna give Germany back their gold, they are gonna have to buy it on the open market, heaven forbid.  That means prices have to come down?  Browns bottom.  300$US/oz keep it comming...

Wed, 02/20/2013 - 17:37 | 3261214 Ned Zeppelin
Ned Zeppelin's picture

Explain how to play HGY-SPY compression trade.

Wed, 02/20/2013 - 18:12 | 3261338 Panafrican Funk...
Panafrican Funktron Robot's picture

I know you got down arrowed, but it's actually a good question.  The "duh" answer would be long HYG - short SPY, but this rests on the assumption that corp bonds are going to hold up better than stocks.  If you buy into the idea that bonds are a bigger bubble than stocks, then you would hate this trade.  

Wed, 02/20/2013 - 17:38 | 3261220 Uncle Zuzu
Uncle Zuzu's picture

Think of a long gold position as an act of revolt against the Fed.  Of course, not all revolts succeed.  Many get crushed.

Wed, 02/20/2013 - 17:41 | 3261227 Piranhanoia
Piranhanoia's picture

You are invited to the biggest sale since ATT in the 1910-20's or Xerox in the 1960's. You don't have to bring anything but cash and trade it for something that isn't paper this time. The legendariest of traders said this was going to happen when the bottom fell out of the unicorn positivity support division of your governedmints.  He said it will indicate a 180º shift.  You only lose if you buy paper during the change, or jump ship in mid ocean.  Relax and enjoy.  Remember, no zombie hunting.

Wed, 02/20/2013 - 17:43 | 3261233 Iam Yue2
Iam Yue2's picture

Where's Hugh Hendry?

Wed, 02/20/2013 - 18:33 | 3261393 reload
reload's picture

Alass poor hugh?

long gold - short s&p will not have been a good start to 2013.

But don't forget he's good at building positions through options strategies. So probably it is not as ugly as it could be - don't worry about him too much!

Wed, 02/20/2013 - 17:43 | 3261234 PUD
PUD's picture

Do you know how many times over the years I've heard the terms "critical support" and "death cross"?  Do you know how many times they were predictors of the future even in the short term?

There is no such thing as any widely known t/a. it is an irrational construct

Not saying that we don't go to dow 400 in the 100 bear market...I believe we do...but technical analysis is voodoo and meaningless

Wed, 02/20/2013 - 18:55 | 3261441 Lore
Lore's picture

I tend to agree, but they would argue that your sentiment is toppish because it "fits the current wave 3 of a 5 wave non-confirmation...." Anyway, the interpretation is always backward-looking. Show me one chartist who could really use a chart to predict market events. I'll stick to voodoo and astral projection.

Wed, 02/20/2013 - 17:45 | 3261240 bnbdnb
bnbdnb's picture

Gold always leads.

Wed, 02/20/2013 - 17:46 | 3261244 PUD
PUD's picture

no it doesn't. no two times and situations are ever the same. we are at a truly unique crossroads in human history let alone market history. relying on any past performance is a sure fire way to blow yourself up

Wed, 02/20/2013 - 17:52 | 3261255 bnbdnb
bnbdnb's picture

Stops / limits help.

Its been working. And if I am wrong, it won't be the first time.

Wed, 02/20/2013 - 17:46 | 3261242 Miss Expectations
Miss Expectations's picture

So I ask myself, would I trade 100 gold eagles for a $150,000 house?

Wed, 02/20/2013 - 17:55 | 3261268 falak pema
falak pema's picture

where can you find a 150 000 $ house? Not even in spain today, inspite of crash.

Wed, 02/20/2013 - 17:58 | 3261280 Temporalist
Temporalist's picture

You could get 150,000 homes for 100 eagles in Detroit.

Wed, 02/20/2013 - 18:26 | 3261377 aardvarkk
aardvarkk's picture

I bought a pretty nice 3 bed 1.5 bath house in August for $112,000.  Single car garage, but fenced back yard, nice neighborhood and full basement.  House prices in flyover country aren't what they are on the coasts...never have been.

Wed, 02/20/2013 - 18:39 | 3261405 FeralSerf
FeralSerf's picture

There's plenty of them in California, even in some pretty nice areas in the central valley.

Wed, 02/20/2013 - 18:48 | 3261427 WillyGroper
WillyGroper's picture


Thu, 02/21/2013 - 02:36 | 3262429 delacroix
delacroix's picture

Wed, 02/20/2013 - 20:13 | 3261653 HoaX
HoaX's picture

So I ask myself, would I trade my nice 150.000$ FIAT bought house in Southern Europe, with a good quality watermine and a fertile plot of land plus plenty of sun for your gold when the shit really does hit the proverbial fan?

Or heck, even trade one of my nice egg-laying hens for a single one of your eagles?


Wed, 02/20/2013 - 21:32 | 3261861 jomama
jomama's picture

houses don't heat/maintain themselves.  neither do livestock.

it's nearly impossible to envision what barter trade would be like if the shit really did hit the fan globally.  i'll stick with something far more portable.

btw, your avatar suits you quite well.

Wed, 02/20/2013 - 22:10 | 3261929 HoaX
HoaX's picture

Thx for the compliment I guess.

Livestock tend to heat themselves quite well as a matter of fact when provided a bit of shelter. So does my house with a bit of wood in the fireplace. Southern Europe doesn´t equal Siberia as you might know, hence my reference to a place like that to buy property.

Your avatar suits you rather well too by the way, since that will be what you are going to end up looking like if you go all-in on gold or silver ;]

Wed, 02/20/2013 - 23:19 | 3262117 jomama
jomama's picture

4/10 on the trolling attempt.  but i am interested in one point of yours: that is where in southern europe you can buy a house with property enough for livestock and access to cords of wood for 150,000 bennybux?

Thu, 02/21/2013 - 10:41 | 3263080 HoaX
HoaX's picture

With the way you are debasing your currency compared to the Euro, I have to admit fewer and fewer places rapidly.

For the rest, do your own research. I know a couple places on the top of my head where you can find a decent house, with solar panels, a windmill, generator, it´s own watermine plus a stream and 1+ hectare of fertile land, part of it forest for +-100k Euros.

Wed, 02/20/2013 - 17:47 | 3261245 busted by the b...
busted by the bailout's picture

If they don't stop the sequester soon, recession is locked in.

The Fed's plan is beginning to wobble.

Wed, 02/20/2013 - 17:48 | 3261250 PUD
PUD's picture

If they stop the sequester then oil goes to $150 and the usa credit rating goes down several notches

Wed, 02/20/2013 - 17:48 | 3261247 SumSUN
SumSUN's picture

I bought silver egles today up here in White Rock B.C. for $32 canadian!  It feels like it is 2011!



Wed, 02/20/2013 - 17:52 | 3261260 PUD
PUD's picture

I count 5 previous "uh ohs' on the chart where the line was broken and "critical support" was taken out...then the market went on to new highs...just saying....charts do not predict anything. They tell you where you've been and nothing more

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