This page has been archived and commenting is disabled.
Liquidation - Stocks, Bonds, Commodities Collapse
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?
»
- 30912 reads
- Printer-friendly version
- Send to friend
- advertisements -
I wonder how many bankster emails, phone calls, and chats the NSA records.
"Ummm, what is all of them."
pods
*poof* no more NSA story.
Never thought about that angle. Leaker works as a messenger.
Yeah, we collect it all. <wink>
Everyone who would ask a question then slinks away.
pods
Compare the GS hostility to Bloomberg reading the wires to the total lack of flack from Wall St. over this NSA issue (at least, in public).
That alone should tell you where the submarines lie. As for emails etc...
http://www.forbes.com/sites/tomgroenfeldt/2013/06/18/nsa-style-intellige...
Last week: http://www.bloomberg.com/news/2013-06-14/u-s-agencies-said-to-swap-data-...
Being part of the Trusted Circle means you don't complain about or acknowledge the Trusted Circle, until it no longer matters if you do.
QE(D).
Another worldwide coordinated central bank intervention in 3, 2, 1...
Meh....whatever. I don't think anyone gives a shit anymore for the 'Great Bearded Ones Illusion Show'
Remember the leverage too....just 20% avg leverage and everything is much higher than that with a 5% drop you're completely wiped out.
Stupid, but serious, question: what is equation for that?
Say you own 10 that you got on 2. You are leveraged 5 to 1. Say your 10 goes to 5. You just lost five and only had 2 in. I think that is roughly how it works.
change 20% to 20x and it makes sense
Sideways market for a while...
Watch tomorrows shitstorm it will make today look calm.
You usually remark how they can keep the whole thing up and running with yet another deciet of some kind (unless I remember wrong Dog), why are you on board for the shitstorm now?
Giving in to The End of the World meme.
Jawboning to save the market. Watch.
Darn it, should have sold that found 90 pounds of copper wire I've got in the shed. Oh well, it'll keep...
2.5% after a 5-yr, 100%+ run-up is a pull-back, correction, or consolidation, not a collapse.
Yes, without QE we never would have made it back to this level, but given the printing effort, they will print and
risk the dollar itself before letting the market fall too much. How far is too much? Only the top-5 banks know for sure.
The real question is when does China flood the markets with us toilet paper? Comming soon to a theater near you.
ben bernanke does not control interest rates, and 3.5-4% is just the beginning.
cash is king as everything is accounted for in benny bucks. lots of margin calls more selling then repeat. money markets are indanger of breaking the buck again I bet, if so the quantitaive easing we have seen will be a sprinkle before the flood but it is only liquidity and we have a solvency problem, unless you have some mythical asset with NO counterparty risk. like a garden and a lead collection
ORCL missed again. That's a bellwether stock. Not good for tech.
http://finance.yahoo.com/q;_ylt=ArX.i4_qfct1rqbLFpYTBWQLv7gF;_ylu=X3oDMT...
America Under Siege
The banana skins..... watch out for banana skins. And could someone ask Ben to put some swimming trunks on....... Oh my eyes
Bad things always happen on Fridays.
So this is what happens when I begin attending "Art Appreciation" in summer school.
Gold under $1,300, Silver under $20, you can count me in.
for what? BTFD?
best day i've had in years ....
all those big kids, in the playground, in the 4th grade, making fun of me just because I'm short ....
I'm so sorry. I'm so very, very sorry ..... really .....
totally agree. Today was my best day in a few years. Markets like this print money.
You know, we should be careful what we are all hoping for. it might come to pass. if this time is worse than last time, food won't make it to market. i know I emotionally want it to crash but rationally i hope it does not.
mittleider gardening method
Gold is down 7 percent today. that's no picnic, i can tell you that. i feel sorry for the people who went like 50% in. Turk and the others keep saying that this is the bottom until another bottom happens like 80 dollars lower than the previous bottom. the only question i have it, how low will gold go. it's like in a elevator in freefall. i have only 5 percent of my assets in at 1600. now it is probably 3 percent
GLL, baby,,,for another day or two....
if anyone's that worried with moves like this then get a GLD put for 30 days out. if it moves down hard you get cash. if it doesn't you lose a little but with so little time not much cash. Some of those went up 280/contract or 300% today alone. I know the blog is called zerohedge but that doesn't mean zero hedging is actually your personal mandate. At a cost I think then of 0.95 for GLD P 12JUL13 124.00 before the move, your only concern is fees & if it went the other way that fee+95$. Big whoop. if you can afford gold maples or eagles you shouldn't be crying over that.
Just a WAG: at 9am tomorrow the corporate press will surprise apprehensive investor/$manager/viewers with news of a 10am appearance before congress of some unscheduled, unannounced financial-or-other talking head, or maybe even some last minute speech by 'yes-we-scan' himself, and the impending equity collapse will be moved down the road once again.
S&P 1550 first
Gravity talks.
Liquidation like a 4 a.m. juicer commercial.
I will buy PMs big time tomorrow as they move further down. YUMMY!
I believe that's William Devane's baby picture.
Its all good QE 5 to the moon Alice
I'll take "blame bush" for $1000 Alex
Where is MDB when everybody needs him?
apparently occupied over here
I switched from AU to AG back in 2009 (and I am now close to 80% into PM). That said - Yes, maybe PM prices will go down a bit more before we see the inevitable economic colapse. But with accelerating currency wars and all the money printing going on (QE that CANNOT stop without directly triggering the colapse) - WE KNOW that the coming currency crisis is just a matter of time, it could be anyday, it could be tommorow or yes it could still be 2-3 years away... But are you willing to take a chance that that eventful final day (when it will be too late to get in) finds you waiting for that lowpoint in the price of PM´s? To each his own, but I for one sleep alot easier knowning that when that day finally arrives - I´ll be ready. I dont worry about the price going down, in fact I´m much happier when it does so that I can buy more - everytime it goes up hard I worry that ¨this is it!¨. I appreciate and am even thankful for TPTB´s obvious manipulation to control the upside, it gives me more time to aquire more silver - today I bought 1000oz (a monster box of philharmonics and a monster box of Surinam 1oz coins) all for around $21k delivered. People need to stop rooting for PM´s to go through the roof, because the day that happens will mean that the world as we know it will be no more. Enjoy what life has to offer now (while you stock up on physical PM´s) - one day many of the comforts we have available may be hard to come by even for those of us that invested wisely. Stop worrying so much and enjoy the show.
200 for me today, catch up with you tomorrow.
I could see silver touch 15 tomorrow easy, or maybe modest cross asset stabilization into the weekend.
Possibly even stocks modest up and commodities reamed again until Monday when stocks catch down.
Of course it could easily be the exact opposite, or just a mash up with absolutely no recognizable qualities to what I've written above, i have no fucking clue, but assume honestly that both tomorrow and Monday are going to be heavily red, might be a good time to stock up for a camping trip in the near future type of thing(which obviously means absolutely nothing profitable or exciting will happen tomorrow(which means it will))..
"Print Fucking Money" Come on Bernanke, print money and dump liqudity. 82 billion a month isn't enough! Buy S&P futures Bernanke! You said you would if need be. Bernanke, this fucking tool has funneled money to the elites for nealry 4 years, now the little people will be crushed. If you haven't landed that dream job a google yet, forget about it! Flip Burgers at McDonalds, you'll get paid with a fee ridden Debit card from fucking JPM! The Bankers are skimming the wages off of McDonalds workers. For Fuck's Sake this Banker greed never ends!
Don't fight the FED!
I haven't watched CNBC in about a year but was religious about it the last decade. You know when they get worried about the market the first move they make is one guy coming on and telling you that he expects a "rip your face off rally" and you better get in before you get left behind. When that doesn't work they and the market gets in bear market territory they will dust off and trot out Abbey Joseph Cohen in order to tell the viewers why the market is now safe to get back in and all is well. I assume the typical wash, rinse, repeat from the battered "financial information" circus barker's.
Today and yesterday were rich in technical events:
a) Yesterday the primary bear market in paper gold was confirmed
http://www.dowtheoryinvestment.com/2013/06/dow-theory-update-for-june-19...
b) Today the primary bear market has been reconfirmed for the gold and silver miners ETFs, GDX and SIL, and the stock market is flirting with a primary bear market signal. If the Transports close down tomorrow a primary bear market for stocks will be signaled, as explained here:
http://www.dowtheoryinvestment.com/2013/06/dow-theory-update-for-june-20...
Translation: YOU ARE FUCKED.
No it wasn't. A primary bear market in gold requires interest rates over 5% and gold hitting something like 500 / oz.
It isn't happening. It isn't going to happen.
http://www.habigerelderlaw.com/upload/Deer%20in%20Headlights.jpg
Reality has the Bernank in a Stranglehold....
http://www.youtube.com/watch?v=yQyDMLVSIWs
Remember, breathing is the ultimate value, ask Tony Soprano...
If the FOMC tanked US markets yesterday, followed by Asia last night, then Europe this morning & us again today... How long does the negative feedback loop continue?
Red ink bukkake in Japan tonight?
orale...whaassappening? am i driving ok...?
I apologize for calling the Chinese lined up to buy gold jewelry the other day "idiots". I realise that I offended many ZH stackers of PMs. I only meant I thought it would go down in price and as I am only guessing I could just have easily been wrong. I understand that you buy now because if it gets too low in price there won't be any available. So, I am sorry I called some people idiots. I was the one who wasn't thinking.
Where-ever we look today there is carnage.
You must not have looked here
http://bitcoincharts.com/charts/mtgoxUSD#rg30zig2-hourztgSzm1g10zm2g25zv
Who gives a Fuck. I'm in Gold @$378 and Silver @$4.26. I knew GLD and other ETF's were gonna cause big swings for the tangible Bullion players like me. Up & Down it goes, one day soon only up because the paper finally burns.