"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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Xibalba's picture

it's all bullshit

Pladizow's picture

and look at the juniors - GDXJ

flacon's picture

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

AllThatGlitters's picture

 The Dow has lost 15,000


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


Pladizow's picture

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

flacon's picture

Buy puts on BTFD, or calls on STFS.

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.

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).

Spitzer's picture

Not for another hour.

Misscomunication at Schiff HQ

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!)"

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.


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

Lore's picture

@ Schiffradio

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

CheapBastard's picture

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

TruthInSunshine's picture


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.

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'.

davinci7_gis's picture

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

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.

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.

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/

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

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.

El Viejo's picture

Dippity Do Daaaaaaaaaah

soopy's picture

I prefer to look at DUST $$$

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

THX 1178's picture

Brace for the Demise (BFTD)

Element's picture

Fall Below The Dollar (FBTD)

fuu's picture

Carefully orchestrated chaos bitchez!

TideFighter's picture

Orchestra on the Titanic. Just hit a Bernankeberg.

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.

smlbizman's picture

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

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.

swissaustrian's picture

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

Creepy Lurker's picture

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

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.


James_Cole's picture

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

Debugas's picture

mining costs are much lower than you think

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.

House-of-Cards's picture

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

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.....

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. 

Bay of Pigs's picture

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

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. 

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.

HardAssets's picture

It doesn't match 2008 yet at this point.

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.

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 !


Thanks for the comparison.

BeetleBailey's picture

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