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Gold And Bonds Lead As Stocks Sit At Cliff's Edge (Again)

Tyler Durden's picture




 

Equities are holding 'off their lows' for now as Treasuries are pushing on to the lowest yields of the day (swinging from +4.5bps to -5bps now). Gold has pushed to the highs of the day (with Silver +1% from Friday's close). S&P 500 futures sit at the lower-edge of their 3-month up-trend channel and today's volume on the downswing was notable. Risk-assets in general are tending to be more risk-averse than stocks though we would not be surprised to see a pull up to around 1515 for a VWAP test before resuming any down-trend. JPY is up 0.5% against the USD but overall the dollar is higher on the day also weighing on risk-appetite.

 

S&P 500 futures are hovering at the lower-edge of that 3-month uptrend... volume on the downswing was well above average...

 

but Bonds and gold are considerably less gung-ho about all this...

 

and overall, as Capital Context's CONTEXT model shows, risk-assets in general are decoupling weaker from stocks for now...

 

Charts: Bloomberg and Capital Context

 

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Mon, 02/25/2013 - 14:37 | 3274534 redpill
redpill's picture

Risk on!  What could go wrong?  It's not like the economy is shrinking.

Mon, 02/25/2013 - 15:04 | 3274597 FranSix
FranSix's picture

You can either have the red pill, or the blue pill.  But they're not telling you they're suppositories.

Mon, 02/25/2013 - 16:57 | 3275027 Motorhead
Motorhead's picture

Market dropping like a rock...Dow 30 down over 190 pts with four minutes of manipulation left.

Mon, 02/25/2013 - 14:37 | 3274535 Confundido
Confundido's picture

It's time the punctual morning slam down resumes tomorrow...to retest the lows.

Mon, 02/25/2013 - 14:39 | 3274540 Flounder
Flounder's picture

Yep, big reversal, earlier was looking like a rebound to new highs now the EURUSD has toes on the cliff's edge and VIX looking to shoot for the moon.  Someone save us...

Mon, 02/25/2013 - 15:02 | 3274592 Flounder
Flounder's picture

If the EURUSD was an olympic diver it would get 10s from all judges except the Italian judge who was too bewildered to vote.

Mon, 02/25/2013 - 14:39 | 3274541 Groundhog Day
Groundhog Day's picture

the economy no longer matters, as long as the 85b keep rolling in month after month, the market will keep climbing

Mon, 02/25/2013 - 14:43 | 3274549 Abraxas
Abraxas's picture

it's gonna take more than 85b/month to keep it going...much more

Mon, 02/25/2013 - 14:45 | 3274553 Coldsun
Coldsun's picture

Hyperbolic like increases

Mon, 02/25/2013 - 14:51 | 3274567 ParkAveFlasher
ParkAveFlasher's picture

G-suits, bitchez!

Mon, 02/25/2013 - 14:58 | 3274582 a growing concern
a growing concern's picture

Need moar heroin!!!!  Otherwise this market's gonna pull a Kurt Cobain.

Mon, 02/25/2013 - 15:04 | 3274595 kliguy38
kliguy38's picture

You are correct Mr. Abraxas. Its not very hard to understand the math and without MUCH more added/month, the hole will swallow the entire pyramid. 

Mon, 02/25/2013 - 14:43 | 3274547 SilverMaples
SilverMaples's picture

Time for the afternoon's pump ...

Mon, 02/25/2013 - 14:48 | 3274561 steveo77
steveo77's picture

In the meantime, get free platinum, LOL 
The Liberty coins folks really outdid themselves for this month. Guess the March closing price for Platinum futures and win a free 1/4 ounce US Eagle Platinum. 
 
What could be better than free silver! Well, free Platinum! Use the link below, OR the Silver contest button on the right, which takes you to the contest, which is now FREE PLATINUM 
 
http://oahutrading.blogspot.com/2013/02/win-free-platinum-enter- contest-here.html

Mon, 02/25/2013 - 14:49 | 3274563 Edward Fiatski
Edward Fiatski's picture

Woop-woop, EUR below 1.3140-50 for the first time since the start of the year. See to it, that it closes there.

Mon, 02/25/2013 - 15:04 | 3274585 Edward Fiatski
Edward Fiatski's picture

Touchdown! At 1.3091. The 200 DMA is at 1.3070.

FX is not buying Hopium. Ye sellin'?

W III is still not finished, but tomorrow should be a quiet day.

Mon, 02/25/2013 - 14:49 | 3274565 MFLTucson
MFLTucson's picture

Clown show!

Mon, 02/25/2013 - 15:19 | 3274648 monopoly
monopoly's picture

Lets not insult clowns. They are much more intelligent than this. :)

Mon, 02/25/2013 - 14:50 | 3274566 john_connor
john_connor's picture

With leverage maxed out, $85 billion per month will have less and less of an effect on nominal price increases.  Therefore not only must their be never ending QE to keep the market rising, but perpetually increasing QE!!!

Mon, 02/25/2013 - 14:59 | 3274573 Yen Cross
Yen Cross's picture

 DXY is coming up on Jan.2012 highs and the 61.8% Fibi of last years(2012) high/low. Ben figures if he is going to screw the world over with his money printing, he should destroy any export advantages we have.

Mon, 02/25/2013 - 14:59 | 3274583 FinalCollapse
FinalCollapse's picture

Memo to all MSM: Bloomberg, CNBC, et al: Always insert the phrase 'Italian cliff optimism' so the text mining algos will go into overdrive. If things go bad, insert the phrase 'Eroding Italian cliff optimism'. All is good - the same business as usual. 

Happy fudging.

Ministry of Truth

Mon, 02/25/2013 - 14:59 | 3274586 PersonalRespons...
PersonalResponsibility's picture

Quick, get Kevin on the horn.

Mon, 02/25/2013 - 15:00 | 3274587 buzzsaw99
buzzsaw99's picture

whats this, t-bonds soaring? whocouldanode

Mon, 02/25/2013 - 15:00 | 3274589 Racer
Racer's picture

Dax has had more than 200 point move today high to low!

Mon, 02/25/2013 - 15:01 | 3274590 Caracalla
Caracalla's picture

Nice dip today for the BTFD crowd  (snicker, snicker...)

Mon, 02/25/2013 - 15:02 | 3274591 Caracalla
Caracalla's picture

Wish I had bought myself some bonds this morning, lol

Mon, 02/25/2013 - 15:18 | 3274644 CuriousPasserby
CuriousPasserby's picture

I was planning to buy some stackables today. Tell me the price will drop tomorrow due to margin calls or something...

Mon, 02/25/2013 - 15:19 | 3274647 Mugatu
Mugatu's picture

This is the calm before the Gold and equities dump resumes.  Fed needs to protect the bond market above all else right now.  To do this, they will trash other stores of value like PM's and paper assets like stocks.  Their manipulation will allow smart PM buyers to buy gold below $1500 very soon.  Save your powder for now and get ready to buy in the next few weeks.   

Mon, 02/25/2013 - 15:30 | 3274695 A82EBA
A82EBA's picture

i dont need buying opportunity..need what i got to go to $3k already..It Is Time LionKing!

Mon, 02/25/2013 - 16:16 | 3274847 espirit
espirit's picture

Am thinking the same thing, so a +1 up arrow for you.

Mon, 02/25/2013 - 15:34 | 3274710 devo
devo's picture

When the FED said they might have to adjust asset purchase they meant (a) more and (b) stocks

Mon, 02/25/2013 - 15:57 | 3274767 Tombstone
Tombstone's picture

$85 billion a month won't even be enough to keep Europe afloat.  Don't forget that Uncle Benny is sending big buckaroos to Europe, although the msm financial channels would never tell us. 

Mon, 02/25/2013 - 16:02 | 3274791 thismarketisrigged
thismarketisrigged's picture

do u thinnk these fucking assholes will try to pump market towards end of day and close it green, or close to?

 

im worried they may, and i will fucking flip if they try and do so.  from down 100 plus to now 60, fuck them if they do

Mon, 02/25/2013 - 16:11 | 3274826 Yardfarmer
Yardfarmer's picture

yawn.

Mon, 02/25/2013 - 16:12 | 3274828 A82EBA
A82EBA's picture

Au + $20

Mon, 02/25/2013 - 17:51 | 3275249 UnRealized Reality
UnRealized Reality's picture

Geez, here we go again Equities go down ONE day and it's the end of the world, pretty sick of hearing the same "the sky is falling" only to be proved wrong again. So, how many people putting their money were their mouth is? probably no one cause it only makes good headlines and nothing else. This is a debt crisis, not an equity crisis. Get over it, all that money ISN'T going into Gold, stop the delusions and be objective and get your head out of Alex, their coming to get you, Jones. Where is his money???? I think I clicked one to many times, see ya.

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