Ugly Morning; Gold Pops As Stocks Drop

Tyler Durden's picture

It's an ugly start to the day wherever we look. Europe is a bloodbath as the dead-cat-bounce hopes fade with Swiss 2Y rates notably negative once again and Italian bond spreads 55bps wider on the week (near the wides of the week) as Italy's equity market plunges back to the lows (-4%) on the week. US equity futures are fading rapidly and after tracking gold for most of the last 12 hours, we are now seeing gold (and silver) resurge as stocks continues to slide back towards bonds un-exuberance. Treasury yields are at the lows of the week (-11bps). From weak macro data overnight to the whocouldanode sequestration, there's plenty to worry about, but then again we have POMO in a few hours...


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SheepDog-One's picture

'U.S. 'braced' for 'deep budget cuts'.

Oh cry me a river rich fucks.

flacon's picture

Let's hope stocks go much, much lower today. A flash crash wouldn't be bad either. 

BandGap's picture

Ain't gonna happen. All the players are manipulated, and there is an army of printers waiting for the counter strike.

Desert Rat's picture

I would settle for -1% today (for a quick short)... POMO is only $1Bln today, so... hope springs eternal... not sure I would BTFD today though...

spastic_colon's picture

the great rotation out of stocks and into POMO

Desert Rat's picture

-1? LMAO... What douchebag can't handle the truth? Fuck you. I work the market for every dollar, either direction.

Lewshine's picture

Damn...That was easy. Bought ITM SPY weekly calls for a double .42 to .84 in 1/2 hour

Cdad's picture


In the words of my brother Sheepdog, and cira 2010, "Let's light this crap candle! Flash crashes everywhere!"

It still sets me a jigglin' when I type that, Dog. 

GetZeeGold's picture



'U.S. 'braced' for 'deep budget cuts'.


In terms of money it's pretty small....but in's a pretty big freakin deal.


Thus all the caterwauling.


Our prayers go out to Bob your six Amigo.

kridkrid's picture

I'm not sure if I buy the whole Woodward thing. I could read it a dozen different ways. Of course I feel the same way about everything, so there's that.

GetZeeGold's picture



From all the Presidents Men to everyone's bitch.


Hero tomorrow.

Hi Ho Silver's picture



And Breitbarted the day after...


kridkrid's picture

I just finished watching House of Cards on Netflix. David Fincher of Fight Club- and it's almost as compelling. About a year ago I read the book Psychopath Test... a great quick read for those here who have not yet picked in up. Psychopathology not only attracks other psychopaths but has a tendency to pull others into the behavior. House of Card paints this all perfectly. I imagine that being a bitch for people with power erodes a person over the time. Lying to yourself constantly, the rationalization that trading this for that is OK as long as the ends justify the means. I can't imagine someone like woodward being anything other than a shell of a human, no matter who he may have been in his youth. Of course, even then he was just a bitch. Soooo... this recent drama... hard to say what's really happening... and what the purpose of this story at this time might be.

CH1's picture

Our prayers go out to Bob your six Amigo.

Yeah. They guy's involved in politics, of all god-forsaken things, but it is interesting to see that even the princes of the field are tossed under the bus for besmirching King Barry.

One has to wonder how long Joe America will keep his fingers in his ears, repeating, "It's not fascism, it's not fascism..."

GetZeeGold's picture



Seems to be a nightmarish mix of just about everything you could imagine.

augustusgloop's picture

except unlike the 50 billion here & there the fed tosses around each month, this 50bilion is for actual jobs... oops.

SheepDog-One's picture

I like the earlier article this morning, little 2% cut still means they'll spend more than last year. Bunch of crybabies can't do with a penny less...but have NO problem taxing the shit out of you at all.

NEOSERF's picture

Given that a full year would be $85b and this year is half over and will be another quarter gone before they can change paperwork, this amounts to about 21B this fiscal year which I would bet the gov pisses away within a couple days or so...

Cdad's picture

Since all govt. numbers are seasonally adjusted annualized guesses, your analysis on spending here does not matter.  But what does matter is what Ben Bernanke said on The Hill this week...which I actually expect to become quite the topic of conversation in the coming days.  I know, I know...unpossible...right?  Actually, the thing that I think has now become unpossible is ignoring the QE issue any longer.

And since the blame game is about to get very real, the finger pointing war between DC and Wall Street, strap in, baby.  

You know, in the context of the Humphrey Hawkins testimony just completed, where is the petition to remove B. Bernanke on  Seriously, wouldn't that be a more pertinent petition than...oh I don't know...building a Death Star?

Mike in GA's picture

And the bastards will make sure these relatively pipsqueak cuts will hurt at the people level the most. 

They always do that - don't cut the travel budget for the AG (in the Gulfstream IV) or the White House staff of hangers-on but cut the highly visible things that cause the most pain. (or can be televised as 'painful cuts to women, children, minorities, LGBT, babies, baby food', on and on.)


yrbmegr's picture

Dollar surging.  Interest rates plummeting.  Markets appear to be pricing in some sequestration.

I need more cowbell's picture

Boy do they have us where they want us mindset-wise; anything other than another $20 bucks straight down is a "gold pops"??


Badabing's picture

if you keep hammering gold it gets tougher

tmosley's picture

More like it spreads thinner and thinner until its all gone.

fonzannoon's picture

goldman just dumped on DB. somethings up.

Charles Nelson Reilly's picture

Lift off!.... til 9:15 when the cocksuckers hit it again. Fuck you Bernanke.

BandGap's picture

About fucking time.

disabledvet's picture

"evil Black Unicorns dead ahead"...

Titus Flavius Caesar Vespasianus Augustus's picture

So, because of this sequester, we'll have to start pulling our guys out of Afghanistan, right?  Devastating cut, no money and all?

GMadScientist's picture

Don't worry...we're still spending $427M on jet planes for the people who've hated us since 2003 so they can have an airforce.

I'm sure they won't do anything stupid with them.

eigenvalue's picture

Question: Why is this website called Zerohedge?

Answer: Because the fans of this site hedge their savings with gold and silver only to find the prices on the way to zero...

It's just a spike. More selling to come...

flacon's picture

The price of gold measured in Zimbabwe Dollars is zero, let's hope the same happens to the price of gold in US Dollars. Remember, there is a fine line between zero and infinity. 

GetZeeGold's picture



I think we could out print Zimbabwe......if we really put our minds to it.

BurningFuld's picture

Already have by a long long way!!!

insanelysane's picture

The artificial suppression of PMs has greatly assisted ZH-ers in acquiring PM.

A strenghts of materials teacher once did the following demonstration to show what happens when metal reaches max stress.

He took a foot long ruler, placed it on the desk and started moving it 1 inch at a time. 1st inch nothing happens, 2nd nothing, ...nothing continues to happen with each little push until....the ruler drops off the table.


Ben can print 80b a month and nothing happens until the ruler drops off the table.


Broomer's picture

A rule made of transparent plastic also makes a good example.

You start to bend both sides and for a while nothing happens; the ruler keeps bending.

Until a point is reached where it snaps into two pieces with a loud crack.

insanelysane's picture

And we forgot to mention how the experts then say "no one could have seen this coming, no one."

BurningFuld's picture

One possible end scenario for the USD, now that Britain has gone in to a currency swap deal with China is the "commonwealth" countries along with China (asia block) basically forcing a new Bretton Woods that lowers the position of the USD. Mark Carney could be a Black Swan in Sheep's clothing here.

Remember the Suez incident?

Non Passaran's picture

Yo moron, more selling is more buying, I love it!

And value of PMs will never be zero.  Although, to be honest, I'm more concerned about the mass.

Titus Flavius Caesar Vespasianus Augustus's picture

Given the hockey sticking of debt, and money in circulation, and the price of gold over the long term, when debt and money supply were much lower, and when the dollar's reserve status was unimpeachable, I guess my question is - what is the basis for your claim?

Is it all the buying by central banks, or is it the increasing deals to trade commodities for gold {or non-dollar fiat}?


There's no question that the price in dollars of gold could come down in the nearer term, but to think it wouldn't shoot right back up, up and beyond where it is now in the longer term  {people hold it to hedge mid and long term you know, largely, anyay} requires a complete lack of understanding of purchasing power of fiat currency?  Why not google how much of things the dollar bought 20 years ago, or even 10.  If gold is in a bubble, what on earth is the stock market in?


Reading a few articles in The Economist now and then doesn't necessarily mean you're not an ignorant twat.

eclectic syncretist's picture

I'll accumulate until the day I die, and teach my children the wisdom of doing the same.

BurningFuld's picture

The amasing thing is that people in Greece are not buying gold hand over fist. Their Greek Euros are about to be swapped for a new Greek Currency. Talk about people that don't see things coming.

A Nanny Moose's picture

Free gold? I wish. Around these here parts, we call that a buying opportunity. If gold went to zero many other things would as well.

thismarketisrigged's picture

so heres the gameplan. as we know, these fucking bastard douchebags will not let the market fall too much.( fuck u obama and bernanke, and all of the fed)


so with the poor global data today, including here in the states, what will happen is that despite the market not selling off at all due to the pending sequester cuts, they will make up a rumor how we will avoid them and the market will shoot up like 150 pts on the dow just on that.


these criminals will find anyway to shoot the market up.


lets hope though we lose 350 plus pts on dow today, i want panic on cnbc and wall st

Global Hunter's picture

just give the congressmen enough time to long equity call options in their PAs before floating the rumour you speak of

BurningFuld's picture

If this is allowed to happen you can be sure all the important people are short today!