Market Responds To NFP - Great Rotation To Safety

Tyler Durden's picture

The kneejerk response to this morning's dismal NFP print was significant disappointment. 10Y yields plunged to a 1.68% handle - its lowest in almost 5 months (and largest 3-day drop in yields in 10 months), S&P futures dropped 10 points (and were already weak overnight), Gold spiked, VIX futures popped over 1 vol to 15.3, and the USD weakened notably against the EUR (which broke above 1.30). The spike is being retraced now but very slowly.



and as a reminder of the disconnect...


So the great rotation to safety continues...


Charts: Bloomberg

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BlueStreet's picture

A logical reaction, that's just illogical.  

flacon's picture

I don't understand why *sometimes* people rush to gold and other times they throw gold under the bus.... 

Pinto Currency's picture

People haven't rushed to gold.

It has been repeatedly ground down.

LawsofPhysics's picture

Odd, just checked and all the ounces are still there.  Please, ignore paper gold.

Stock Tips Investment's picture

The market is very nervous and overbought. The NFP data today does not justify a big reaction.

GetZeeGold's picture



I just checked my sock hasn't been hacked yet.

aka Gil's picture

Goading the Bitcoin cheerleaders? ;-)

francis_sawyer's picture

They're too busy & tied up trying to log in to the exchange server

Gief Gold Plox's picture

You live in fear of someone wanting to hack at your socks? Damn, you've got strange concerns :-P

Smuckers's picture's still there.

earleflorida's picture

... now that's a 'rounding error', ironically on a downward slope where momentum will meet a wall street head-on!?

abort, abort, abort,...

the 'qe`bilge pump' is dysfunctional captain bur`rr'nak!

we're fuck'd!!!

buzzsaw99's picture

wow that is starting to simulate what a real market would do very well today

TeamDepends's picture

We just saw a flying pig!

Cursive's picture


Is today the day that the curtain drops on "BernanQE's Greatest Economic Hoax and CNBS Circle Jerk of All-Time?"

Vince Clortho's picture

Take the Circle Jerk out of CNBS and all that's left is commercials.

rubearish10's picture

Somebody turned on the light switch!

monopoly's picture

Well, maybe, just maybe, it is our Turn.

fomcy's picture

I won't be surprised to see DOW finish green today :))

Cursive's picture


The day is approaching where even the TBTF/PPT won't be able to maintain life support on this coma of a "market."

TumblingDice's picture

The only thing that would surprise me at this point is if Katy Perry rode into my room in a velociraptor and started giving me a blowjob. The market, on the other hand, shouldn't surprise anyone that follows it.

Sauk Leader's picture

Would the raptor still be in the room when this was happening? That would be a little awkward.

TumblingDice's picture

Wouldn't surprise me if he stayed in the room at that point. Animals brought back from extinction have all sorts of weird tendencies. 

Vince Clortho's picture

A veritable prophet you are.

WhiteNight123129's picture

Safety, the 30 Years, safe? Ha come the fuck on, wait until the end of this decade.... Treasuries are going to be a blood bath.




DrDinkus's picture


LawsofPhysics's picture

85 billion that we know of.  TPTB know there is a specific range they need to keep treasuries in to make it "appear" like normal, unmanipulated market trading.  The world is quickly become range bound in many ways.

buzzsaw99's picture

Good luck with that. People shorting Japanese bonds have gotten reamed forty years and counting. Thirty years and counting in the usa.

LawsofPhysics's picture

The term for the next hundred years that every trader needs to be familiar with is "range bound".  There is no market, all will be as your local authority describes.   That is all, get back to work.

NoWayJose's picture

It won't see range bound, it will see roped, hog-tied and sent to slaughter...

LawsofPhysics's picture

Not as long as the Fed and primary dealers can make the bid whatever they want.  Until that changes, we remain range-bound and this little club of arrogant fucks will continue to profit by front-running themselves.  Full frontal, theft/fraud.  Roll the motherfucking guillotines already.

monopoly's picture

I would not short treasuries yet, just look at Japan. Wait till the 10 is negative interest and they pay us to buy a house. lol

dow2000's picture

Didn't we do that back in '08 with tax credits?

DoneThis2Long's picture

"they pay us to buy a house"

Buy a set of Whirpool "Green" Appliances and you get a Coupon for a house in Stockton ... downtonw to boot!!!!

Love, Uncle Sam.

ziggy59's picture

LOL..dismal news, silver goes up 0.12, bad or no news Ag goes down...

scatterbrains's picture

I'd guess insiders started selling this news around 8am on wednesday.  Very very strange to see the /es actually lower at 4am.

monopoly's picture

Patience, patience. Silver will move.

eclectic syncretist's picture

Either way, if I can get some silver when the price is in the $25 per ounce range, I'm a buyer. 

sandiegoman's picture

Turndown in defense spending is just starting to hit. Not looking good.

NoWayJose's picture

Given the political adjustments we have seen with this number, it makes me wonder if they jacked it down so that Obama can push more spending or repeal of parts of the sequester. It clearly shows that QE has no impact.

Jason T's picture

yeah, UUP or TLT?  not sure what to buy

Yen Cross's picture

     You know things are f**ked up when the euro and pound both spike over a 100 pips on the NFP#s. Those two 'Heckle & Jeckle' economies are far worse off.

      I think the $ might start to strengthen if things really start to deteriorate. People can't run to the yen anymore. I bought some paper silver last night as s/t hedge @ 26.85. Let's see if it does anything.

css1971's picture

See, that's how you make gold & silver go up. You fuck over every other safe haven first.


That's quite an achievement by the guys in charge BTW.

Yen Cross's picture

  +1 on that comment.

Dewey Cheatum Howe's picture

Must save the S & P Bernanke says in a Ren the Chihuahua voice. Bonus points if anyone picks up the actual line I am referencing from Ren and Stimpy.

Bearwagon's picture

You of all people seem somewhat NOT endangered to me ...

fuu's picture

Grats on the 3 hours.

Bearwagon's picture

Thank you. I've come a long way, reading ZH since the days Marla was still around. And particulary you (among some others) are one of the posters I enjoy very much. So I thought, I'd hang around with the usual supects a bit  :)