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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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}

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!

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

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.

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.

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(

LongBalls's picture

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

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.

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.

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.

boogerbently's picture

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

Supernova Born's picture

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



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?!?!?

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.

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?

LongBalls's picture

They clearly do not have Germany's gold.

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.

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"?

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

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?? 

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?

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. 

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. ¬¬

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...

Long_Xau's picture

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

auric1234's picture

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


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.

DoChenRollingBearing's picture

Wait, lemme check...

Yes, my ounces are still there!

Spitzer's picture

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



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.

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).

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.

Ned Zeppelin's picture

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

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")

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.

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.

Lord Of Finance's picture

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

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.

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.

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.

lemonobrien's picture

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

Dr. Richard Head's picture

Talk about a Mexican standoff....

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.

Harbanger's picture

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

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.

kliguy38's picture

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