"Taper On" Triggers Hindenburg Omen And "Risk Off"

Tyler Durden's picture




 

Where's the buy-the-dip mentality? Yesterday's collapse triggered yet another Hindenburg Omen - the 7th in the last month) and it appears it is the equity market's turn for some pain as Treasuries (which initially weak) have stabilized 2-3bps higher in yield. The Dow has lost 15,000 and is down over 200 points today; the S&P 500 is testing back to its 1,600 level; but homebuilders are being battered (as clearly good is now officially bad). The S&P 500 is now the furthest below its 50DMA in 2013 - this is key as it has been critical support all the way up. Gold and Silver have been crushed (and copper and oil are following) this week so far and the USD is up 1.75% so far. Credit markets are being destroyed - investment grade spreads are 10bps wider to 90bps from FOMC.

 

Yesterday triggered the 7th Hindenburg Omen in a month...

 

The S&P 500 is now the most below its 50DMA for the year...

 

S&P Sectors...

 

The major indices...

 

Commodities collapsing...

 

as the USD surges..

 

and credit is being destroyed...

 

Charts: Bloomberg

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Thu, 06/20/2013 - 10:28 | 3675123 Xibalba
Xibalba's picture

it's all bullshit

Thu, 06/20/2013 - 10:30 | 3675130 Pladizow
Pladizow's picture

and look at the juniors - GDXJ

Thu, 06/20/2013 - 10:31 | 3675135 flacon
flacon's picture

There's only one way to play this market: SELL THE FUCKING SPIKES

Thu, 06/20/2013 - 10:32 | 3675140 AllThatGlitters
AllThatGlitters's picture

 The Dow has lost 15,000

 

I first read that as the Dow dropped 15,000 points, LOL.  Sounds about right.

 


Thu, 06/20/2013 - 10:35 | 3675154 Pladizow
Pladizow's picture

What is this ticker symbol - BTFD - that zero hedge keeps on talking about and why should I always only buy it?

Thu, 06/20/2013 - 10:36 | 3675166 flacon
flacon's picture

Buy puts on BTFD, or calls on STFS.

Thu, 06/20/2013 - 10:40 | 3675181 fonzannoon
fonzannoon's picture

Rick Santelli coming on the Schiff radio show in a few mins I think.

I believe you can listen to the audio live. schiffradio.com

Sincerely - Schiff pumper.

Thu, 06/20/2013 - 10:48 | 3675205 Manthong
Manthong's picture

C’mon now.. this is engineered..

Maestro Jr. needs a little new normal rational (not irrational) exuberance trimmed before he can be “go for throttle up” (that’s a little rocket lingo from before we needed Russia to put our men, er.. LGBTQIA  in space).

Thu, 06/20/2013 - 10:50 | 3675215 Spitzer
Spitzer's picture

Not for another hour.

Misscomunication at Schiff HQ

Thu, 06/20/2013 - 11:08 | 3675323 merizobeach
merizobeach's picture

I guess Bennie & Co felt they had to remind everyone that, "QE is a gift, and if you don't act exuberantly enough, we'll threaten to take it away.  (Of course, we won't, really, but we'll threaten!)"

Thu, 06/20/2013 - 13:14 | 3675719 Manthong
Manthong's picture

Everybody will be screaming for moar.

Some kind of hyperlink problem with LGBTQIA in my post above .. the acronym just keeps on growing.

http://tahoesafealliance.org/for-lgbqtia/what-does-lgbtqia-mean/

Over time they will likely get some letters for inanimate objects, bestiality and authorized pedophilia added on.

Thu, 06/20/2013 - 12:59 | 3675653 Lore
Lore's picture

@ Schiffradio

Holy cow, that page is a KLUDGE. Somebody confiscate Schiff's copy of DreamWeaver.

Thu, 06/20/2013 - 11:03 | 3675287 CheapBastard
CheapBastard's picture

They're dusting Hank Paulson's TARP mushroom cloud speech off (and maybe dusting him off too) backstage.

Thu, 06/20/2013 - 12:56 | 3675649 TruthInSunshine
TruthInSunshine's picture

+1

All (whatever and however many remain) 401(k)s have a gun to their head with the Too-Big-To-Fails-and-Too-Close-To-Placeholder-To-Jail threatening to pull the trigger.

Straight from the Hank 'Tanks In The Streets & Martial Law' Paulson "give Timmmay & I a fukkin' blank check and give it to us now, bitchez" playbook, circa-2008.

These entities that own our "elected & representative" government lack any imagination whatsoever.

Thu, 06/20/2013 - 13:14 | 3675731 HardlyZero
HardlyZero's picture

Maybe they can resurrect Hank and he could be the new FED HEAD.

That would make more sense than a newbee...he already started to write this fiasco...but never the final Act.  Might be nice to see him dealing with the outcome of QE and messing with the markets.   It would be nice to know he was feeling the results of his 'genius'.

Thu, 06/20/2013 - 10:47 | 3675203 davinci7_gis
davinci7_gis's picture

I am going to buy some more SHTF (gold and silver) tomorrow when the dust clears!

Thu, 06/20/2013 - 10:53 | 3675231 CrimsonAvenger
CrimsonAvenger's picture

I was going to go all in on TEOTWAWKI, but it turns out it's just a composite of food, water, and lead.

Thu, 06/20/2013 - 11:01 | 3675280 franzpick
franzpick's picture

BTFD does not include buy-the-F-GAP; the island-gap-reversal has occurred and the next downside target is the early May gap, and later the Dec 31 '12 gap. See VTI for one example.

Thu, 06/20/2013 - 10:35 | 3675161 AllThatGlitters
AllThatGlitters's picture

Gold has held its low for 5 hours now and it looks like it wants to turn higher.

Does that mean if I buy this dip, it drops another hundred?

Live Spot Gold: http://www.pmbull.com/gold-price/

Thu, 06/20/2013 - 10:54 | 3675239 Debugas
Debugas's picture

if you plan to buy more at 1200 then go and buy at 1300 some amount.

if you do not plan buying more at 1200 then do not buy at 1300 either

Thu, 06/20/2013 - 11:20 | 3675372 merizobeach
merizobeach's picture

That's how it is for me, bro.  Like clockwork, everytime I buy, it takes another dive.  Trying to smarten, I now make plans to buy on consecutive days, to take advantage of the smackdown(s) that I apparently cause.

Thu, 06/20/2013 - 11:34 | 3675417 I Am Not a Copp...
I Am Not a Copper Top's picture

I thought it was me

Thu, 06/20/2013 - 10:32 | 3675141 El Viejo
El Viejo's picture

Dippity Do Daaaaaaaaaah

Thu, 06/20/2013 - 11:54 | 3675490 soopy
soopy's picture

I prefer to look at DUST $$$

Thu, 06/20/2013 - 14:35 | 3676021 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 - 10:28 | 3675125 THX 1178
THX 1178's picture

Brace for the Demise (BFTD)

Thu, 06/20/2013 - 10:33 | 3675149 Element
Element's picture

Fall Below The Dollar (FBTD)

Thu, 06/20/2013 - 10:29 | 3675126 fuu
fuu's picture

Carefully orchestrated chaos bitchez!

Thu, 06/20/2013 - 10:34 | 3675155 TideFighter
TideFighter's picture

Orchestra on the Titanic. Just hit a Bernankeberg.

Thu, 06/20/2013 - 10:30 | 3675131 fonzannoon
fonzannoon's picture

it certainly is.

Thu, 06/20/2013 - 10:33 | 3675133 swissaustrian
swissaustrian's picture

How long can pms trade below mining costs? I say 18-24 months at worst. Even that would mean we would get several bankruptcies in the mining sector.

Thu, 06/20/2013 - 10:34 | 3675156 smlbizman
smlbizman's picture

i think it already has as some mines are closing due to cost...its been in the news

Thu, 06/20/2013 - 10:36 | 3675163 fonzannoon
fonzannoon's picture

swissaustrian the miners will probably be pushed to the point of bankruptcy. At which point they will be thrown lifelines in the form of loans from the banks. So shareholders will probably be wiped out and the banks will end up as the onwers of the miners.

Thu, 06/20/2013 - 10:43 | 3675187 swissaustrian
swissaustrian's picture

I hope that the streamers and royalty companies (FNV, RGLD, SAND, SLW) will "save" the miners from the loan sharks...

Thu, 06/20/2013 - 11:08 | 3675324 Creepy Lurker
Creepy Lurker's picture

Fonz, either loans from the banks or nationalization a la General Motors. But it amounts to the same thing, really.

Thu, 06/20/2013 - 11:21 | 3675375 Bobportlandor
Bobportlandor's picture

banks will end up the Owners.

 

More like the elitist will be the owners. The banks are just the cover story / fall guy for the collapse.

 

Thu, 06/20/2013 - 14:17 | 3675958 James_Cole
James_Cole's picture

The banks already own the miners, c'mon guys do ten seconds of research.

Thu, 06/20/2013 - 10:55 | 3675244 Debugas
Debugas's picture

mining costs are much lower than you think

Thu, 06/20/2013 - 10:57 | 3675252 swissaustrian
Thu, 06/20/2013 - 14:19 | 3675964 James_Cole
James_Cole's picture

After the 80s production was scaled back big time until the 2000s. The idea that miners can't produce for under a certain $ therefore price must support certain levels is completely backward.

Thu, 06/20/2013 - 10:31 | 3675138 House-of-Cards
House-of-Cards's picture

didn't you mean bullish....not bullshit? 

Thu, 06/20/2013 - 10:33 | 3675143 BeetleBailey
BeetleBailey's picture

just wrote my metals broker, asking about his sales, and the spot vs. phyz spread......

is it the largest in history?

 

26.75 for phyz silver was the last quote I got....but that was weeks ago.....on phyz coins.....best quote.....

Thu, 06/20/2013 - 10:41 | 3675184 Ignorance is bliss
Ignorance is bliss's picture

I just bought some canadian maple tubes for 23.08 per coin. There are 25 coins in a tube. (not including shipping) Not sure when I will get them, but I was pretty happy with the price. I've ordered from Gainesvillecoins before. It can take a while for the coins to arrive, but I always get the coins and they are better priced then Apmex. I don't like the spread, but I'm happy someone still has silver to sell at any price. 

Thu, 06/20/2013 - 10:44 | 3675194 Bay of Pigs
Bay of Pigs's picture

And I thought 2008 was pretty bad. This is mindbendingly stupid...

Thu, 06/20/2013 - 10:52 | 3675222 Ignorance is bliss
Ignorance is bliss's picture

I am very thankful for the affordable assets. One day your kids will ask in Mandarin why you didn't buy moar during this once in a lifetime opportunity. 

Thu, 06/20/2013 - 11:00 | 3675266 Bay of Pigs
Bay of Pigs's picture

When silver hit $9 in 2008 but you couldn't find any to buy. Dealers were cleaned out. Best price I heard back then was $13-14 an ounce.

We need a better phrase than "Full Retard" to describe what is happening now in gold and silver.

Thu, 06/20/2013 - 11:05 | 3675307 HardAssets
HardAssets's picture

It doesn't match 2008 yet at this point.

Thu, 06/20/2013 - 11:20 | 3675368 Bay of Pigs
Bay of Pigs's picture

Huh? Gold from $1900 to a 1200 handle and silver $49 to 19? (as opposed to $1000 to 692, and $21 to 9)

Looks just as bad and no bottom is in place. Inventories aren't cleaned out either.

Bullish sentiment for miners is at 0% now too. Gold/XAU ratio at 14...near another all time high.

Thu, 06/20/2013 - 13:19 | 3675750 HardlyZero
HardlyZero's picture

Yes, it looks just like losing 60% in value from $22 to roughly $9.  So 40% of $49 is $20....BINGO !!!

We have a reasonable bottom now....its like Silver Fibonacci logic.   After a 60% drop then buy SILVER !

Cool.

Thanks for the comparison.

Thu, 06/20/2013 - 11:05 | 3675302 BeetleBailey
BeetleBailey's picture

Many thanks Ig....my broker just shipped my clients....ordered right after the plunge....backlogged 4 weeks he says....

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