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 today...to 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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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

http://www.youtube.com/watch?feature=player_embedded&v=tHuGVkTwMb8#!

TruthInSunshine's picture

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

*Bernanke's Virtuously Virtual Circle Jerk Economy

Irelevant's picture

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

JenkinsLane's picture

And where is Simon Potter?

Michelle's picture

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

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. 

Spastica Rex's picture

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

Panafrican Funktron Robot's picture

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

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). 

DoChenRollingBearing's picture

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

DaveyJones's picture

as it hits

the less promises with strangers, the better

lemonobrien's picture

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

jimmyjames's picture

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

Gold was at $35 then-

devo's picture

Where does gold land? 1500?

DoChenRollingBearing's picture

A) $55,000 or

B) $100,000

are my guesses!

ParkAveFlasher's picture

Options Expiry Monday. 

$1620 Wednesday.

lemonobrien's picture

ans India, and in the Rothchilderens private vaults.

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

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.    

Ned Zeppelin's picture

Fed still printing. . . . jest sayin'

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.

Jim in MN's picture

Dow:Gold 1:1 @ 5,000

Oh, but when>???

 

devo's picture

I mean this recent sell off.

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.

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..

DONE BITCHEZZ

youngman's picture

I feel this is the ultimate battle...next 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....

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.

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 ...

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.

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.

 

 

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... ?

lemonobrien's picture

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

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: http://www.economicpolicyjournal.com/2013/02/get-ready-for-some-major-disinformation.html

 

 

"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

 

joego1's picture

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

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 russians.....talk about 5th column treason - the nazi banksters have done their damage.....it 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....

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.

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.

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).