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Liquidation - Stocks, Bonds, Commodities Collapse

Tyler Durden's picture




 

Since we lost the deer yesterday as it was run over by bond sellers, it appears everyone else came to the realization that QE cannot be infinite, that EU event risk never went away, and that China does have a credit bubble and so it is time for the monkey. Where-ever we look today there is carnage. The superlatives are all extreme but are the biggest since Europe collapsed in October/November 2011 (preceding the coordinated global central bank bailout) - 1-day and 2-day drops in stocks the biggest in 19 months, Gold and Silver's second largest 1-day drop in 20 months, investment-grade and high-yield credit's worst 1-day and 2-day widening in 19 months, EM currencies (e.g. MXN) worst day in 19 months, Copper's worst day in 19 months, and the heaviest volume day in S&P futures in 20 months. While stocks closed at the lows of the day, Treasuries did see some buying come in the last hour or so - which appears to be safe-haven scrambling - and EUR weakness (post IMF) was trumped by JPY strength (unwinds) to drag the USD off its highs into the close.

 

 

Stocks are broadly down 3.5% to 4% since the FOMC...

 

With the S&P futures down 4.4% from yesterday's highs and having their highest volume in 20 months...

 

and housing names the hardest hit (even with today's positive news - since good is now ultimately bad)...

 

While stocks (above) closed at their lows, Treasuries were modestly bid in the last hour or so (as the plethora of bond gurus emerged to explain how the Fed will never leave)...

 

FX markets were once again on fire (though EM more so than the majors)...

 

Gold, Silver, and Copper (China!!) were destroyed... ending at their lows...

 

VIX broke above 21% today - up over 4 vols - its highest close of the year...

 

We would imagine more than a few margin clerks will be busy tonight...

(h/t @Not_Jim_Cramer)

 

Charts: Bloomberg and Capital Context

 

Bonus Chart: Bonds have 'collapsed' to equities' exuberance but without the support of the Fed - will they both revert (as they always have) to macro-fundamentals?

 

Bonus Bonus Chart: Where's The Yield Maria?


 

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Thu, 06/20/2013 - 16:08 | 3676521 JeremyWS
JeremyWS's picture

upload an update hindemburg omen chart please

Thu, 06/20/2013 - 16:13 | 3676553 Freedom In Your...
Freedom In Your Lifetime's picture

Meh, i can't muster the energy to feel sorry for anyone that hasn't realized financial or commodity markets are a scam. If 2008-2009 didn't wake people up then they will deserve what is coming. The tomatoes in my garden are delicious and my peppers will be ripe in a couple of days and that affects me more than scary looking charts ever could.

Thu, 06/20/2013 - 16:25 | 3676642 BigJim
BigJim's picture

I'm a PM holder and don't have a garden to cheer me up, so I nipped over to King World News instead.

It's all good, apparently, for us holders of PMs; according to James Turk (not sure if he's 'out of Spain' at this time) we are heading into the very 'Eye of the Hurricane'!

Which is odd, really, because I always thought the eye of the hurricane was the quiet bit. 

Thu, 06/20/2013 - 16:31 | 3676676 James_Cole
James_Cole's picture

Copper chart is looking very ugly. 

Thu, 06/20/2013 - 16:38 | 3676708 Ness.
Ness.'s picture

Hubba hubba hubba - who ya gonna trust?  Dr. Bernanke or Dr. Copper?  

I'll stick with Dr. C thank you very much.

Thu, 06/20/2013 - 16:43 | 3676732 Lets_Eat_Ben
Lets_Eat_Ben's picture

VIX is your friend out here. This is bat country.

Thu, 06/20/2013 - 16:45 | 3676746 Fish Gone Bad
Fish Gone Bad's picture

This is how the epic fail will play out:

All the shorts have been found and squeezed.  Now all the longs will get destroyed.  Everyone ends up losing.  This is the first collapse everyone saw coming and yet still got wiped out.

Thu, 06/20/2013 - 17:06 | 3676833 Praetorian Guard
Praetorian Guard's picture

I agree.

Thu, 06/20/2013 - 17:28 | 3676911 Citxmech
Citxmech's picture

IDK - my PM meter is swinging solidly into the "buy" range right now. 

Only thing I'm not sure about is whether to split my dry powder and dollar-cost-average some, or just go all in. . .

Thu, 06/20/2013 - 23:37 | 3677994 ndotken
ndotken's picture

"Our largest worry concerning the ETFs is that the paper price of the asset overshoots the limits of the physical supply and a COMEX default occurs. The paper markets (ETFs, contracts, derivatives, etc) can move the silver price much faster than the physical market, and if they move them too far and too fast, the demand in the physical market may cause more deliveries than is supported by actual physical stocks and force parties to default on delivery obligations. This would reverberate in the market and would cause a rush from paper to physical and a surge in the physical price, which is not a situation where an investor wants to own the paper equivalent of the commodity."

It's finally dawning on these buffoons that owning paper is not the same as owning physical ... LMFAO ... and these idiots are now realizing there is no "paper equivalent" of a precious metal

Thu, 06/20/2013 - 17:06 | 3676834 Panafrican Funk...
Panafrican Funktron Robot's picture

Just wanted to note that this selloff came in spite of a $3+ billion POMO day today.

http://www.newyorkfed.org/markets/tot_operation_schedule.html

Tomorrow not likely to be pretty.

Thu, 06/20/2013 - 16:49 | 3676770 Praetorian Guard
Praetorian Guard's picture

PM's won't mean dick if this bitch completely rolls... nice to hedge against fiat IF the system continues, but with the totality of everything involved, me thinks this bitch implodes and then goes nuke...

Thu, 06/20/2013 - 17:02 | 3676817 e-recep
e-recep's picture

gold will do fine during a nuclear winter.

Thu, 06/20/2013 - 17:05 | 3676829 Praetorian Guard
Praetorian Guard's picture

With your skeletal remains still clutching it, as a cock roach scampers over your hand, up your humerus, and out through your orbital socket? ;)

Thu, 06/20/2013 - 17:08 | 3676840 seek
seek's picture

and a rifle in the other, boney hand ;)

Thu, 06/20/2013 - 17:20 | 3676895 Praetorian Guard
Praetorian Guard's picture

Hahahahahahaha

Thu, 06/20/2013 - 17:33 | 3676924 Citxmech
Citxmech's picture

If things completely roll-over - that's what you've also got guns and grub for (right?).  OTOH - I don't think we're close to a total societal collapse just yet.  Just another leg down - probably bigger than last time though.

Thu, 06/20/2013 - 18:43 | 3677143 Calmyourself
Calmyourself's picture

Correction: empty rifle in my boney hand..

Thu, 06/20/2013 - 17:26 | 3676908 xxxxx
xxxxx's picture

I like your sense of humour, like the dancing bear too. Someone should make a animated gif of him.

Thu, 06/20/2013 - 20:09 | 3677343 MeelionDollerBogus
MeelionDollerBogus's picture

keep in mind gold is an alpha radiation deflector and lead is a gamma radiation deflector. beta radiation (electrons) can be deflected with various materials and deflected with magnetic fields.

In an actual "nuclear winter" maybe you'd be lucky enough to keep crops under cover & safe-ish though one key question arises:

where does your water come from? That pretty much is key.

Thu, 06/20/2013 - 17:22 | 3676900 xxxxx
xxxxx's picture

It's always "good" news at King World News. Sort of like going to disneyland.

Thu, 06/20/2013 - 16:25 | 3676644 Beam Me Up Scotty
Beam Me Up Scotty's picture

Did the Plung Protection Team go on vacation?  Maybe they retired, wealthy as they are...

Thu, 06/20/2013 - 16:29 | 3676672 max2205
max2205's picture

This anin't shit...TLT was -3% at one point...-2% close...whoopdedo

Thu, 06/20/2013 - 16:45 | 3676747 Lets_Eat_Ben
Lets_Eat_Ben's picture

"Anin't" ain't a word.

Thu, 06/20/2013 - 16:31 | 3676678 Argent
Argent's picture

and yet here you are...

Thu, 06/20/2013 - 16:38 | 3676712 Freedom In Your...
Freedom In Your Lifetime's picture

yes, here I am. Keeping up with the news and killing time at work...

Thu, 06/20/2013 - 16:33 | 3676692 I_Rowboat
I_Rowboat's picture

Damn straight!  Here in the Puget Sound area, my honeybees are going full-bore on the blackberry blossoms, the peas and greens are abundant, the corn, tomatoes, peppers, melons, cukes and squash are doing great, and crabbing season is about to open.  I've never seen such a vigorous potato crop!  Livin' off the fat of the land, I tell ya!  (There's no iPhone app for that, BTW)

Thu, 06/20/2013 - 17:03 | 3676822 1C3-N1N3
1C3-N1N3's picture

+1 for healthy bee colonies.

Mead is good shit, too. =]

Thu, 06/20/2013 - 19:00 | 3677185 I_Rowboat
I_Rowboat's picture

I made blackberry wine last year, it was really good, and I'm planning on stepping up my efforts in a major way this year.  So I get to keep the cake and eat it too:  first as honey from the blossom nectar, then as alcohol from the fruit.  What a splendid arrangement!

Thu, 06/20/2013 - 20:14 | 3677347 1C3-N1N3
1C3-N1N3's picture

Good stuff! As soon as that blackberry wine is done, you could likely drop some honey-water onto the remaining wine/champagne yeast culture and let it ferment out into mead. I'd imagine you could even sweeten it with some of your leftover berries. (Apologies if you already know this, and if not here's a guide -- basically boil and then cool ~1-1.5 quarts honey per gallon of water http://www.homebrewing.org/How-to-Make-Mead_ep_40-1.html )

 

Fri, 06/21/2013 - 07:06 | 3678472 StychoKiller
StychoKiller's picture

You do not have to cook the honey, it already has anti-bacterial agents in it.  Use distilled water and you won't have to boil the water either.

 

Thu, 06/20/2013 - 17:25 | 3676902 Citxmech
Citxmech's picture

No kidding on the 'taters huh?  I'm in N. Seattle and my potatos are going CRAZY too.  Best crop I've ever had w/o doing anything special at all. 

Of course my tomatoes are doing absolutley nothing - so here's my plug for diversity in planting.

Thu, 06/20/2013 - 17:35 | 3676931 I_Rowboat
I_Rowboat's picture

I'm in Kingston.  This is my first year with a greenhouse -- an old carport I covered with real greenhouse-grade plastic (not the visqueen crap from a hardware store) -- and the difference is huge, even with past experience using hoop tunnels.  Past attempts with tomatoes have been lackluster and melons have been non-existent.  Not so this year.

Thu, 06/20/2013 - 17:46 | 3676974 1C3-N1N3
1C3-N1N3's picture

Wow! I'm very happy for you folks and your results thus far. I was in Nebraska last year and hardly anything would grow at all. 95-100 degrees with no rain, every day it seemed from late April til late September, except for that one night right before the tornado came along...and it was just as bad for most of the midwest.

Keep it up, guys. There's nothin' like the I-made-this-and-now-I'm-gonna-have-it moment. =]

Thu, 06/20/2013 - 19:11 | 3677209 I_Rowboat
I_Rowboat's picture

Ugh.  I grew up on the Colorado Front Range so I feel your pain.  Hot and dry as hell in the summer.  It reliably rained (or hailed) in the afternoon every few days or so 20 years ago - not so anymore.  In western WA we get maybe a few days above 90 but the humidity is moderated by the marine air.  No rain here from July to Sept or October, but plenty of time and precip before that to establish strong, deep root systems.  Learning how to (mostly) dry garden - at least for the summer crops - is just as important here as it is elsewhere.

Thu, 06/20/2013 - 20:22 | 3677378 1C3-N1N3
1C3-N1N3's picture

Right on. I just moved back to southern IL (not far from KY) and have to skip this year b/c I'm in an apartment now. Plus, the frosts persisted deep into April, so that hampered a lotta folks here. By next year, though, I plan on having some space to work with. Bees, beets, and beasts if I'm lucky, lol. We'll see.

Best to y'all this year!

Thu, 06/20/2013 - 17:48 | 3676977 Pretty Vacant
Pretty Vacant's picture

Huh?  The investors which bought equities early in this rally are up over 100%.  It's a little silly to be smug because they gave a small percentage back.  We have a long way to go before we can dish out schadenfreude.

Thu, 06/20/2013 - 20:04 | 3677329 MeelionDollerBogus
MeelionDollerBogus's picture

small percentage back? They probably will just barely break even to what they had at 2007 at best. You seem to be forgetting these same people lost their shirts DURING the crash down to 2009 and didn't make enough in % gains OR income to make up the losses.

Thu, 06/20/2013 - 16:18 | 3676595 Schmuck Raker
Schmuck Raker's picture

@JeremyWS

http://t.co/Ro7Cw1pSZp

[via Tyler's tweet around 3:30]

Thu, 06/20/2013 - 16:22 | 3676622 JeremyWS
JeremyWS's picture

cheers must have missed it on the twitter

Thu, 06/20/2013 - 16:27 | 3676652 BLOTTO
BLOTTO's picture

Summer Solistice in the Year of the Serpent (Snake) set to begin tomorrow...

.

The Sun-gods and its pagan worshippers will be happy.

 

 

Thu, 06/20/2013 - 16:38 | 3676713 Metalredneck
Metalredneck's picture

Bonfire, wine & nudity tonight.  And deet, since I am in Canada.

Thu, 06/20/2013 - 16:50 | 3676774 pods
pods's picture

God Bless the Black Fly!

Isn't that the national bird up there?

pods

Thu, 06/20/2013 - 17:53 | 3676995 MisterMousePotato
MisterMousePotato's picture

A long time ago, I was driving along the West Branch of the Penobscot River in northern Maine in my Volkswagon bus. Stopped at the Big Eddy, went around to the back and opened the hatch. Well, you know? The rear window was covered about half an inch thick with black flies. Black flies are something that, if you haven't experienced  'em in person, there's just no way to explain it.

Thu, 06/20/2013 - 16:11 | 3676522 fuu
fuu's picture

Fuck the deer, give 'em the ape.

Thu, 06/20/2013 - 16:17 | 3676580 Unprepared
Unprepared's picture

said like a chimp!

Thu, 06/20/2013 - 16:32 | 3676691 Manthong
Manthong's picture

Lousy recording of a good scene involving ape’ing a commodities scammer.

http://www.youtube.com/watch?v=x07BKBdjIak

..and how Senators get their start.

Thu, 06/20/2013 - 16:08 | 3676523 Midasking
Midasking's picture

tapering is not happening or the entire world will be a smoking hole in the ground. QE will be expanded you can count on that. http://tinyurl.com/mem7o7x

Thu, 06/20/2013 - 16:16 | 3676552 kaa1016
kaa1016's picture

And when QE is increased, that's when you'll see the mother of all selloff's because at that point, the perception that the Fed has everything under control will be revealed for exactly what it is, BULLSHIT.

Thu, 06/20/2013 - 16:18 | 3676596 SheepDog-One
SheepDog-One's picture

Nothing but a smoke and mirrors illusion.The real shitstorm is about to hit when everyone bolts for the locked door at once.

Thu, 06/20/2013 - 16:29 | 3676667 Jack Burton
Jack Burton's picture

There are so many fucking fools out there. I tried last week to warn one of the retail investor sheep. Nope, he was not having any of it. Just ignore the downside, long term investing is his key. Yep, I said "How do you invest in cassion gambling where you are the sucker and the elites are the House"?

So many others still believe in the power of markets to price discover and reward value investing. Value? Fucking Fed is the Value, they are the Market.

And is it not about time the cracks start to show in the entire liquidity debt drive fake recovery. Europe ain't coming back. Canada and OZ are in early stage blowup. And christ himself doesn't know what really is the state of China's rigged economy with an ocean of shadow banking debt on short term rollover".

Europe screwed. Britain screwed, Oz screwed, Canada screwed. The middle east locked in a holy war crusade and muslim civil war. Brazil and Turkey coming unglued. The USA a giant fake money printing whore. And China the worlds greatest question mark.

Surely a "Value Investor" has a chance of good rewards for picking stocks.

Thu, 06/20/2013 - 16:48 | 3676762 Ham-bone
Ham-bone's picture

folks just don't understand the difference of money (as in the capital of previously called capitalism) vs credit layered with massive leverage layered with credit derivatives...they see a Dow # and think I want me some of that...my father in law has millions w/ his financial guru who has him believing trees grow to the sky and 8% infinite growth ain't no issue (neverming the finite world we live in).

Thu, 06/20/2013 - 16:56 | 3676802 Cycling Fish
Cycling Fish's picture

Whats not to like?

 

I'm in cash and PM. Waiting for the buyng oppertunities which should appear in about Three to nine months.

Thu, 06/20/2013 - 16:13 | 3676554 Divine Wind
Divine Wind's picture

 

 

Yup.

Stop the printing and everything folds up.

All the rest is smoke and mirrors.

Thu, 06/20/2013 - 16:22 | 3676617 1100-TACTICAL-12
1100-TACTICAL-12's picture

Mr. Bernak your chopper is ready.

Thu, 06/20/2013 - 16:22 | 3676627 skank
skank's picture

Smoke On The Water ~ Deep Purple with Lyrics
http://www.youtube.com/watch?v=qRCt4H0mcCk

Thu, 06/20/2013 - 16:42 | 3676731 Panafrican Funk...
Panafrican Funktron Robot's picture

Keep printing = no tier 1 capital, liquidity crisis, shit is fucked.

Less/No printing = bonds implode, IR swaps crisis, shit is fucked.

 

Thu, 06/20/2013 - 17:29 | 3676913 Herd Redirectio...
Herd Redirection Committee's picture

Its funny, I always think of interest rates from the perspective of what effect it will have on banks (i.e. having to lend reserves) and the economy, while forgetting the clusterfuck that is Interest Rate Swaps!

Didn't a lot of the WS firms essentially BET that rates would stay low?

Thu, 06/20/2013 - 18:08 | 3677053 Panafrican Funk...
Panafrican Funktron Robot's picture

"Didn't a lot of the WS firms essentially BET that rates would stay low?"

Yes.  They also sold a bunch of this toxic shit to pension funds and local/state governments (early preview of effect = Birmingham, AL).  Sound familiar?

Thu, 06/20/2013 - 17:05 | 3676786 Mine Is Bigger
Mine Is Bigger's picture

... Oops

Thu, 06/20/2013 - 16:09 | 3676529 Number 156
Number 156's picture

The shitstorm has cometh.

Thu, 06/20/2013 - 16:19 | 3676569 Ham-bone
Ham-bone's picture

Funny the "money has go somewhere" meme - when the market is at record long leverage, that isn't money but credit.  So credit blows up and goes away...not moving to something else.  Unwinds are a bitch for those wound up in em...think getting Maytag'ed when you thought you'd play in the surf but waves got way bigger than you realized...and usually they come in sets and this is just the first.

Thu, 06/20/2013 - 16:20 | 3676605 Bay of Pigs
Bay of Pigs's picture

Black Friday on the Summer Solstice tomorrow?

 

Thu, 06/20/2013 - 16:25 | 3676633 Ham-bone
Ham-bone's picture

As much as we've been trained to look for the urgent buyers or PPT and the like to save the market...I really think you could be right.  I'm not positioned for it so I doubly think your right!!!

Thu, 06/20/2013 - 16:54 | 3676795 kliguy38
kliguy38's picture

how appropriate brotha pig.......hehehhe.....criminal baastids

Thu, 06/20/2013 - 16:20 | 3676607 Dr. Engali
Dr. Engali's picture

Correct..every dollar of credit that goes away is another dollar that evaporated from the system.

Thu, 06/20/2013 - 16:25 | 3676646 Spastica Rex
Spastica Rex's picture

Maybe it sublimated.

Thu, 06/20/2013 - 16:46 | 3676756 Panafrican Funk...
Panafrican Funktron Robot's picture

Lumber futures chart was funny as fuck today.

http://www.finviz.com/futures_charts.ashx?t=LB&p=m5

 

Thu, 06/20/2013 - 17:53 | 3677000 ghostfaceinvestah
ghostfaceinvestah's picture

Exactly, a lot of people don't get it on a day like today - "how are all asset prices going down, isn't there a flight to safety in something"?

But as you say, there is no money, just leverage, and when the leverage is taken down, it just disappears - there was no money behind it.

I have said it before on this site - it isn't just equities, you should see the massive leverage some of these mortgage REITs have.  They are going to implode as rates keep rising.

Thu, 06/20/2013 - 19:01 | 3677188 Droel
Droel's picture

In't it called cashola?

Thu, 06/20/2013 - 16:10 | 3676530 FieldingMellish
FieldingMellish's picture

My VXX is up :)

Thu, 06/20/2013 - 16:09 | 3676531 Agent P
Agent P's picture

Monkey?  Monkey?  I'm a fucking gorilla, you clown!

Thu, 06/20/2013 - 16:19 | 3676601 CrimsonAvenger
CrimsonAvenger's picture

The gorilla my dreams, to be precise

Thu, 06/20/2013 - 16:12 | 3676534 ekm
ekm's picture

This is one example to understand that ...money can literally vanish into nothing, hence EVERYTHING can go down.

 

It's a collateral based system.

Thu, 06/20/2013 - 16:15 | 3676562 silver surfer
silver surfer's picture

It comes from nothing, goes to nothing, and what do you got ? Nothing.

Thu, 06/20/2013 - 16:16 | 3676573 ekm
ekm's picture

Very true

Thu, 06/20/2013 - 16:43 | 3676729 Ness.
Ness.'s picture

Nothin' from nothin' leaves nothin' - Billy Preston.  Enjoy!

http://www.youtube.com/watch?v=OuaG-TCpbtw

Thu, 06/20/2013 - 18:45 | 3677146 JLee2027
JLee2027's picture

Excellent, thanks

Thu, 06/20/2013 - 16:28 | 3676668 trader1
Fri, 06/21/2013 - 02:00 | 3678291 Meat Hammer
Meat Hammer's picture

I distinctly remember reading a passage in The Creature from Jekyll Island where Griffin says the following, then I had the "oh, shit moment when one realizes he's just had an epiphany.

MONEY WOULD VANISH WITHOUT DEBT

It is difficult for Americans to come to grips with the fact that their total money-supply is backed by nothing but debt, and it is even more mind boggling to visualize that, if everyone paid back all that was borrowed, there would be no money left in existence.

That's right, there would not be one penny in circulation – all coins and all paper currency would be returned to bank vaults – and there would be not one dollar in any one's checking account. In short, all money would disappear.

Thu, 06/20/2013 - 16:22 | 3676623 Winston of Oceania
Winston of Oceania's picture

Worthless script may vanish but silver and gold seem to endure, for thousands and thousands of years. How is it that we have been taught that debt is money? Inflating a promisory currency backed by, ahem, good intentions is theft plain and simple. Most people can't do the math to prove this to themselves so the charade goes on.

Thu, 06/20/2013 - 16:24 | 3676638 LawsofPhysics
LawsofPhysics's picture

"It's a collateral based system." - yes, therein lies the rub.  Mind if I see that collateral motherfucker?  So many paper promises and "mark to fantasy" accounting, so little assets and collateral of real fucking value...

Thu, 06/20/2013 - 16:30 | 3676675 tecno242
tecno242's picture

Just as it can be created from nothing.

Thu, 06/20/2013 - 16:37 | 3676704 DosZap
DosZap's picture

This is one example to understand that ...money can literally vanish into nothing, hence EVERYTHING can go down.

 

It's a collateral based system.

 

Yep, but not ALL things can go to ZERO.

Thu, 06/20/2013 - 16:10 | 3676536 TLT
TLT's picture

How can people not realizing what is going on?

Everything is f***** up.

Epic collapse.

Let's welcome the Monkey.

Thu, 06/20/2013 - 16:11 | 3676540 ebworthen
ebworthen's picture

"It's on like Donkey Kong"

LOL!

Wonder what QE5 will be...

Thu, 06/20/2013 - 16:13 | 3676556 SheepDog-One
SheepDog-One's picture

QE5 will be 'You suckers actually believed us? Huh...sucks to be you....well you and your 401K/pension are now on your own'.

Thu, 06/20/2013 - 17:17 | 3676873 Two Theives and...
Two Theives and a Liar's picture

It will be more like "you and your pension/401K are belong to us!" (You will buy Gov't paper whether you like it or not!)

Thu, 06/20/2013 - 16:11 | 3676541 thismarketisrigged
thismarketisrigged's picture

these wall st bankers aint see anything yet. this was nothing, 2 percent plus downwards on only words and no action, imagine when bernanke actually takes action, this will seem like a picnic.

 

this is great. i am a bit concerned ( and i hope i am wrong) that tomorrow we may see a bit of green. i hope china implodes tonight and then we prob will see a lot more red.

 

hopefully gold and silver bounce back, but i used this as a buying opp.

Thu, 06/20/2013 - 16:18 | 3676592 MsCreant
MsCreant's picture

We did a 30% retracement last go round (2007-08) from that high. I am betting on at least that or more. I don't need the cash for anything and I have cash. None of the fundamentals for Gold and Silver have changed. Deflation, then inflation.

Thu, 06/20/2013 - 16:26 | 3676656 LawsofPhysics
LawsofPhysics's picture

yes, no society/currency has ever collapsed/died because it's purchasing power was too strong.

Thu, 06/20/2013 - 16:41 | 3676724 Herd Redirectio...
Herd Redirection Committee's picture

Thats what it comes down to.  If the USD gets really strong, guess what, they will print money to take advantage of the fact!

When the banks start lending those reserves...  Whether its for M&A, commercial loans, personal loans, auto loans, CRE...  Thats when things get nasty/terminal.

Thu, 06/20/2013 - 16:21 | 3676612 reload
reload's picture

I like your enthusiasm ! but somebody with your handle hardly needs reminding...the CB`s ARE still in control. They may be letting some air out of the balloon, but face ripping rally's
can be unleashed by the all seeing eye in a nano second.

How much air are they going to let out? are they going to sacrifice an insurance company or another PD ? I have no idea. But they ARE still in control.

Even if `the masses` now see QE for the insiders enrichment scheme it is - I doubt the CB`s and their controllers give a damn. They still hold the aces...I mean printing pressses.

Be nimble

Thu, 06/20/2013 - 16:43 | 3676733 Herd Redirectio...
Herd Redirection Committee's picture

If the dollar continues to strengthen and stays that way, the US government is MASSIVELY indebted.  Which results in?

If the dollar weakens, it is likely to lose reserve currency status.   Its a choice between the currency or the government.  Most have said the currency will lose out.  First by deflation (we are living it), and then inflation.

Thu, 06/20/2013 - 17:11 | 3676852 NotApplicable
NotApplicable's picture

Nah, there's no choice, that's merely a false dichotomy. BOTH will be destroyed in order to be rebuilt more to "their" liking. The "choice" is merely the means to ensure those ends.

Thu, 06/20/2013 - 17:43 | 3676960 Herd Redirectio...
Herd Redirection Committee's picture

I think the elites knew a collapse was coming (they did engineer the system, and have the most experience with usury and fractional reserve banking and fiat, after all).  But I think they want to control the collapse.  I'm not convinced they are in as much control as they think/claim.

So if its really a question of control, then one wonders will they be more 'in control' after currency crisis, or less 'in control'.  Since currency crisis means losing faith in government, banks, etc (that is not easily restored) I think they will be less 'in control'.

Thu, 06/20/2013 - 17:07 | 3676841 NotApplicable
NotApplicable's picture

It's funny that more don't realize this, given everything has been scripted for the downfall of The Bernank.

When it was announced a couple of months ago that he wouldn't be attending the circle-jerk at the J-hole, it was obvious that something was going to drastically change between now and then.

Ben is now officially a lame-duck, by design. So that means no Fed rescue until he's gone. Which means maximum pain in the meantime until "the people" beg for drastic measures to be reinstated (even though they won't work either).

It's nothing more than a ratcheting effect, where they buy time while waiting for the next opportunity to plunder. Because, as everyone knows, nothing moves in a straight line.

 

Thu, 06/20/2013 - 16:12 | 3676542 SheepDog-One
SheepDog-One's picture

This coming 'price discovery' period is going to be a real skull splitter hangover. No real people are willing to buy any of this FED pumped crap until FAR lower.

Thu, 06/20/2013 - 16:12 | 3676543 Syrin
Syrin's picture

Someone explain to me why the recent drop in gold and silver.   Everything else I can understand, but if the Chair Satan has vowed to keep printing it means even worse furture inflation and should mean gold prices would be going up, not down.  Well, I'm still going to believe in what Ron Paul recently said, gold will go to infinity in the near future

Thu, 06/20/2013 - 16:15 | 3676564 jekyll island
jekyll island's picture

You need to ask Jamie Dimon's handlers.  

Thu, 06/20/2013 - 16:15 | 3676567 wisehiney
wisehiney's picture

Fed prints $85 billion in a world of trillions. They control nothing. It's called deflation. You sell anything you can for what you can get. 

Thu, 06/20/2013 - 16:33 | 3676695 Beam Me Up Scotty
Beam Me Up Scotty's picture

However, they can "print" 850 billion, or 8.5 trillion in seconds.  Just takes a few keystrokes on the computer.  Or they can set the printer to ramming speed and make 85 billion a month seem like chump change.  If they let the stawk market tank, the people will be BEGGING for QE.  I don't mind some deflation, costs less to fill my car.

Thu, 06/20/2013 - 17:02 | 3676816 wisehiney
wisehiney's picture

Hyper inflation has the same end result.

Thu, 06/20/2013 - 16:45 | 3676748 css1971
css1971's picture

The Fed can put as many zeros behind a number as it likes. They chose to make it 9 zeros.

Thu, 06/20/2013 - 16:47 | 3676757 Syrin
Syrin's picture

It has to be more complex than that.   When the Chair Satan announced nothing has or will change, then why the mass dump the next day.   By whom, and who is buying?   Is there ANYONE still buying paper gold?  This seems more coordinated, and is in defiance of what economic principles tell us should be happening.

Thu, 06/20/2013 - 17:21 | 3676897 PKF
PKF's picture

I believe more people were listening to Kyle Bass than Bernanke yesterday. 

Hence, denial was outted.  The 'real' world slaps ya in the face.

Thu, 06/20/2013 - 16:23 | 3676632 Relentless
Relentless's picture

Its called liquidation

Thu, 06/20/2013 - 16:43 | 3676736 Syrin
Syrin's picture

Perhaps, but people who buy gold aren't buying it to sell it off.   They are in it for the long haul.   China had a line 10,000 people long last week to buy gold.  If they're selling off paper gold, who is buying it?  With QE infinity announced, gold should be going up unless this is anotehr dump on gold by the Fed.

Thu, 06/20/2013 - 16:24 | 3676637 RSDallas
RSDallas's picture

The leverage is fleeing the building first.  Once that is bled off, which could be substantial, gold and silver will catch a bid.

Thu, 06/20/2013 - 16:25 | 3676647 Cloud9.5
Cloud9.5's picture

Everybody may be rushing to dump thier paper.

Thu, 06/20/2013 - 16:44 | 3676740 Syrin
Syrin's picture

Which I thought of, but who is buying it?   Why now and all of a sudden?

Thu, 06/20/2013 - 18:03 | 3677042 MisterMousePotato
MisterMousePotato's picture

The consensus around here seems to be the Fed, other central banks maybe, too, and their various minions, lackeys, and enablers.

Thu, 06/20/2013 - 16:35 | 3676700 Going Loco
Going Loco's picture

"Someone explain to me why the recent drop in gold and silver"

Once again, here is the most likely explanation.

Thu, 06/20/2013 - 19:45 | 3677284 MeelionDollerBogus
MeelionDollerBogus's picture

well what else did you see? Did you see more contracts hit the market without explanation? Or did you see people panic out of everything that's not cash?

Thu, 06/20/2013 - 16:12 | 3676544 catacl1sm
catacl1sm's picture

Is that bear doing the Macerena?

Thu, 06/20/2013 - 17:23 | 3676901 PKF
PKF's picture

That bear knows how to dance. 

Thu, 06/20/2013 - 16:12 | 3676545 kito
kito's picture

was this ben "testing" the market????? was it his way of slowing down irrational exuberance????? does he really feel the economy is better and can stand on its own??????

Thu, 06/20/2013 - 16:15 | 3676565 SheepDog-One
SheepDog-One's picture

I suppose he could actually be completely insane and believe some of that.

Thu, 06/20/2013 - 16:17 | 3676586 fonzannoon
fonzannoon's picture

Bernanke is going to hold a press conference next week and say nothing. He will put out his hand and everyone will come up kiss it and beg him tp come back.

Thu, 06/20/2013 - 16:24 | 3676641 kito
kito's picture

speaking of kissing the hand of the godfather, im so bummed about james gandolfini.....put a dent in my day...............

Thu, 06/20/2013 - 16:27 | 3676662 Spastica Rex
Spastica Rex's picture

My condolences.

Thu, 06/20/2013 - 17:46 | 3676972 xxxxx
xxxxx's picture

My favorate funny line from the Sopranos was.... Tony telling his sister Yes Janice, it is my business, since I took your last boyfriend out in a hefty bag.

Thu, 06/20/2013 - 19:42 | 3677275 MeelionDollerBogus
MeelionDollerBogus's picture

Maybe he'll say "stocks always go up. It's tradition"

Thu, 06/20/2013 - 16:15 | 3676566 Al Huxley
Al Huxley's picture

Look how much stronger the economy's gotten since Ben spoke yesterday!  If he was puzzled yesterday, think how puzzled he must be now.

Thu, 06/20/2013 - 16:18 | 3676588 trader1
trader1's picture

if it was a test, then we should see some lackluster economic numbers over the coming weeks.  this will be the excuse to take taper off the table...for now

Thu, 06/20/2013 - 16:18 | 3676594 Its Only Rock N Roll
Its Only Rock N Roll's picture

You give BB way too much credit. 

Thu, 06/20/2013 - 16:26 | 3676613 Meremortal
Meremortal's picture

See 3676570, didn't see this comment first.

"...does he really feel the economy is better and can stand on its own??????"

No, but he has to act like he's not having his strings pulled by the bond market, which is what is happening. 

Thu, 06/20/2013 - 16:41 | 3676716 DosZap
DosZap's picture

was this ben "testing" the market????? was it his way of slowing down irrational exuberance????? does he really feel the economy is better and can stand on its own??????

 

This was a test, Benny can read the real stats, and he knows how screwed we really are.There is NO recovery.

Thu, 06/20/2013 - 16:26 | 3676558 Al Huxley
Al Huxley's picture

A solid close as the S&P is well off it's lows, rallying .25% (off a drop of 44), and bonds got a solid bid with the 10 year yield down .1% (from the high of the day).  Meanwhile, speculative assets like GLD and SLV were sold as speculators came to their senses and abandoned the 'fast money' trade, and assets fit only for old jews to sew into their clothes (edit - h/t Charlie Munger).

Thu, 06/20/2013 - 16:15 | 3676560 ebworthen
ebworthen's picture

I'm seeing 1 billion shares traded on the DOW, 2 billion on the NASDAQ - sounds like a lot (?).

Thu, 06/20/2013 - 16:14 | 3676561 Sabibaby
Sabibaby's picture

Beef, it's what's for dinner.

Thu, 06/20/2013 - 16:15 | 3676570 Meremortal
Meremortal's picture

Bernanke getting what he wants here. Everyone has been saying the market is too high for conditions, and he's taking out some froth while doing nothing but talking about tapering in the future.

Now he can backtrack on the taper talk whenever he likes and the market will have room to run again...he hopes.

I was thinking $1250 looked like a good entry point to start adding to my very small gold position.

Thu, 06/20/2013 - 16:16 | 3676574 skank
skank's picture

Signs  (Five Man Electrical Band)
http://www.youtube.com/watch?v=Z1Q7cP3ij5g

Thu, 06/20/2013 - 16:17 | 3676575 Tsar Pointless
Tsar Pointless's picture

That was fun! Can we do it again tomorrow? And the next day? And the next day? And...

Thu, 06/20/2013 - 16:19 | 3676576 ArrestBobRubin
ArrestBobRubin's picture

I'd say there's about a 75% chance the market will be ramped back up at least 300 or 400 pts by next Weds. Back over 15K. The past 2 days will be Down the Memory Hole like they never happened and it will be Happy Days Are Here Again on CNBS, Faux Biz and Bloomboig...

Gold and silver will be held down at these new lower levels to allow shorts to continue to cover. BTFD bitches.

Thu, 06/20/2013 - 16:16 | 3676577 ebworthen
ebworthen's picture

omfg...stock analysts on CNBC using "vastly oversold" and "dry powder" and "buying opportunity" jingoisms.

Thu, 06/20/2013 - 16:18 | 3676590 Al Huxley
Al Huxley's picture

WELL OFF THE LOWS, WELL OFF THE LOWS! SQUAWK!  WELL OFF THE LOWS!  POLLY WANT A CRACKER! SQUAWK!

Thu, 06/20/2013 - 16:27 | 3676654 SheepDog-One
SheepDog-One's picture

Who do they think they're convincing to buy at this point....the E-Trade baby?

E-Trade Baby Loses Everything - YouTube

Thu, 06/20/2013 - 16:31 | 3676681 Tinky
Tinky's picture

Be careful – Squawk Box™ is trademarked. Keep it up, and a Cease and Desist order will be delivered shortly.

Thu, 06/20/2013 - 16:29 | 3676671 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

About gold right?

Thu, 06/20/2013 - 16:32 | 3676683 SheepDog-One
SheepDog-One's picture

CNBS stock anal cysts.

Thu, 06/20/2013 - 16:16 | 3676578 SmittyinLA
SmittyinLA's picture

if copper drops below $2 I'm buying me a big roll of roofing sheet copper 

Thu, 06/20/2013 - 16:17 | 3676579 pods
pods's picture

On the bright side, at least we aren't talking about how the government has bugged every single electronic device in existence?

pods

Thu, 06/20/2013 - 16:18 | 3676593 Dr. Engali
Dr. Engali's picture

Really? When did they start doing that?

Thu, 06/20/2013 - 16:17 | 3676581 Jugdish
Jugdish's picture

I"m heading to the survival bunker as soon as the delivery boy shows up with my two liter, wings, and x-large supreme.

Thu, 06/20/2013 - 16:17 | 3676582 Agent P
Agent P's picture

Holy shit!  Is that a dancing polar bear?

Thu, 06/20/2013 - 16:17 | 3676584 Dr. Engali
Dr. Engali's picture

Five years worth of "wealth effect" getting wiped out in days. Good job Ben! Mission fucking accomplished.

Thu, 06/20/2013 - 16:24 | 3676639 pods
pods's picture

Yeah, we were a little puzzled by that.

:D

pods

Thu, 06/20/2013 - 16:19 | 3676598 Aurora Ex Machina
Aurora Ex Machina's picture

China's supercomputer online? - Check

Big B Meeting done? - Check

Taper is panicking the wolves? - Check

Big B disinfo released to the tinfoilers? - Check

Russia launched massive Propaganda Campaign? - Check

Bankers quit who were on the hook? - Check

List of Markets rigged by co-operative Game theorems all released? - Almost Check

ME shock? - Almost Check

Mass Population Unrest? - Almost Check

HFT percentage from 70% -> 100%? - Almost Check

 

Skynet Aware? - Almost Check

 

It's Happening!

 

(p.s. This post is purely for humor and bears no relation, living or dead, to the current state of the markets, reality, the price of fish or your spiderman towel warranty. Trading on this basis will produce the same results as any major Financial Adviser group given current market conditions)

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