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"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 | Link to Comment Xibalba
Xibalba's picture

it's all bullshit

Thu, 06/20/2013 - 10:30 | Link to Comment Pladizow
Pladizow's picture

and look at the juniors - GDXJ

Thu, 06/20/2013 - 10:31 | Link to Comment flacon
flacon's picture

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

Thu, 06/20/2013 - 10:32 | Link to Comment 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 | Link to Comment 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 | Link to Comment flacon
flacon's picture

Buy puts on BTFD, or calls on STFS.

Thu, 06/20/2013 - 10:40 | Link to Comment 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 | Link to Comment 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 | Link to Comment Spitzer
Spitzer's picture

Not for another hour.

Misscomunication at Schiff HQ

Thu, 06/20/2013 - 11:08 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment I Am Not a Copp...
I Am Not a Copper Top's picture

I thought it was me

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

Dippity Do Daaaaaaaaaah

Thu, 06/20/2013 - 11:54 | Link to Comment soopy
soopy's picture

I prefer to look at DUST $$$

Thu, 06/20/2013 - 14:35 | Link to Comment 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 | Link to Comment THX 1178
THX 1178's picture

Brace for the Demise (BFTD)

Thu, 06/20/2013 - 10:33 | Link to Comment Element
Element's picture

Fall Below The Dollar (FBTD)

Thu, 06/20/2013 - 10:29 | Link to Comment fuu
fuu's picture

Carefully orchestrated chaos bitchez!

Thu, 06/20/2013 - 10:34 | Link to Comment TideFighter
TideFighter's picture

Orchestra on the Titanic. Just hit a Bernankeberg.

Thu, 06/20/2013 - 10:30 | Link to Comment fonzannoon
fonzannoon's picture

it certainly is.

Thu, 06/20/2013 - 10:33 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Debugas
Debugas's picture

mining costs are much lower than you think

Thu, 06/20/2013 - 10:57 | Link to Comment swissaustrian
Thu, 06/20/2013 - 14:19 | Link to Comment 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 | Link to Comment House-of-Cards
House-of-Cards's picture

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

Thu, 06/20/2013 - 10:33 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment HardAssets
HardAssets's picture

It doesn't match 2008 yet at this point.

Thu, 06/20/2013 - 11:20 | Link to Comment 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 | Link to Comment 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 | Link to Comment BeetleBailey
BeetleBailey's picture

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

Thu, 06/20/2013 - 10:46 | Link to Comment Headbanger
Headbanger's picture

What price did you get for phyz 7.62x54R (LPS would be nice)?  Or any 357 mag?

Thu, 06/20/2013 - 10:49 | Link to Comment Ignorance is bliss
Ignorance is bliss's picture

$589 for 1000 rounds

http://www.bulkammo.com/

Thu, 06/20/2013 - 10:52 | Link to Comment Boston
Boston's picture

Just bought 10oz bars from my dealer, the most I've ever purchased in any single order, and a few hours later, the same dealer is now CLEANED OUT.

 

Thu, 06/20/2013 - 10:32 | Link to Comment Dr. Engali
Dr. Engali's picture

All is going as planned. If we lose a couple thousand points off the dow then I'll be convinced there is some bad shit happenning. With the S&P at 1602 it's just a shake out.

Thu, 06/20/2013 - 10:54 | Link to Comment RSloane
RSloane's picture

There were some epic battles raging at 1613 last week. Today it feels more a like a weak retreat.

Thu, 06/20/2013 - 10:55 | Link to Comment fonzannoon
fonzannoon's picture

It sure seems like a controlled demolition.

Thu, 06/20/2013 - 11:06 | Link to Comment teolawki
teolawki's picture

Just think of it as Bernanke's building 7.

Thu, 06/20/2013 - 11:07 | Link to Comment BeetleBailey
BeetleBailey's picture

Indeed Fonz...going after one thing, then another....the Aussie  getting crushed.....silver.....gold....

I can see Gold ....but silver? It is asinine....

Thu, 06/20/2013 - 11:29 | Link to Comment RSloane
RSloane's picture

I see a Monty Python fish slapping dance on the S&P so far this morning but no outright demolition. If technicals are threatened further its going to fight like a roller derby queen to stay above or at 1600. You have a better grasp of the market in its entirety than I do but I just don't see the guiding hand that the word " controlled" implies. I may be too jaded to see what I should be seeing.

Thu, 06/20/2013 - 11:36 | Link to Comment fonzannoon
fonzannoon's picture

I am more jaded than you. The only time I will believe the market is not controlled is when it goes bidless.

Thu, 06/20/2013 - 11:21 | Link to Comment Dr. Engali
Dr. Engali's picture

200 points off of the DOW is just enough to scare the sheep. If this was something big we would see the bids dry up completely.

Thu, 06/20/2013 - 10:56 | Link to Comment Boston
Boston's picture

How about silver, now down about 60% from peak?

If folks liked it at 30 and 25, then they'd better LOVE it at 19.90 right now.

I do.

 

Thu, 06/20/2013 - 11:08 | Link to Comment BeetleBailey
BeetleBailey's picture

bizzzzzarre the spread between actual vs phyz....the outright motherfucking manipulation.....

 

Thu, 06/20/2013 - 11:00 | Link to Comment DeadFred
DeadFred's picture

The S&P tested the 50 day from the bottom and is trying out 1600 from the top side. My prognostication is that it spends the next few days stuck between the two. <never trade on my guesses> Things are a bit oversold short term for it to continue dropping fast without any end-of-world type news

Thu, 06/20/2013 - 11:34 | Link to Comment Hongcha
Hongcha's picture

DeadFred the yield on the 10-year, plus China's liquidity situation, are both quite ominous imvho.  When the Chinks go to cash they do so with a vengeance; and the Party does not give a damn whom they steamroller.  If the Party wants inflation dropped dead in its tracks, so it shall be.

Thu, 06/20/2013 - 13:23 | Link to Comment HardlyZero
HardlyZero's picture

Seems like China has a "Matrix" creative destruction switch they flip ON special occasions.  Clears out the weeds for a few years.  Maybe in a few years it will be go-go-gung-ho again.

Thu, 06/20/2013 - 10:35 | Link to Comment FieldingMellish
FieldingMellish's picture

Good to see central bank stability... meanwhile, CONgress must decide whether to lift the debt ceiling. I am sure this time prudence will prevail... (ha!)

Thu, 06/20/2013 - 10:37 | Link to Comment 1C3-N1N3
1C3-N1N3's picture

Kevin, it's not too late to pull a Snowden.

(Or at the very least, he may ruin his workstation with projectile coffee.)

Thu, 06/20/2013 - 10:37 | Link to Comment Bosch
Bosch's picture

I like to be an optimistic guy so I'm open to discovering some coherent & sound logic on some possible way the market could be higher 3 months from now because I damn sure can't see any reason why it would be. 

Thu, 06/20/2013 - 11:10 | Link to Comment BeetleBailey
BeetleBailey's picture

sound logic?

Of course not.

About...oh.....243 billion dollars still being fucked into the system, a la Benny and the Fuckin JetPrinters?

......and road paving equipment....

 

...and THAT is not changing....and the balloon money must go somewhere....

Thu, 06/20/2013 - 10:37 | Link to Comment ejmoosa
ejmoosa's picture

Damn....

 

So many of us said Bernanke ws painting himself into a corner.  Gonna be a painful period as we watch that paint dry.

Thu, 06/20/2013 - 10:40 | Link to Comment Headbanger
Headbanger's picture

But of course CNBS will blame China for today's implosion...

Thu, 06/20/2013 - 10:41 | Link to Comment A82EBA
A82EBA's picture

APMEX 1oz $29.99 over spot

Thu, 06/20/2013 - 10:45 | Link to Comment sandiegoman
sandiegoman's picture

Gold and miners looking really ugly.

Thu, 06/20/2013 - 10:49 | Link to Comment Vooter
Vooter's picture

Beauty is certainly in the eyes of the beholder...

Thu, 06/20/2013 - 10:46 | Link to Comment dolph9
dolph9's picture

I'm going to buy more but I'm running out of fiat.

The problem is these takedowns don't coincide with my paycheck!

Thu, 06/20/2013 - 11:21 | Link to Comment Creepy Lurker
Creepy Lurker's picture

If you're cutting it that close, you may want to consider saving yourself the stress of trying to buy under these circumstances. I'm convinced there will be a short period of deflation before the currency collapses. Stand ready to pay your bills in cash for 3 months (give or take) without a job.

Thu, 06/20/2013 - 10:46 | Link to Comment css1971
css1971's picture

S&P 1200 here we come.

Thu, 06/20/2013 - 10:49 | Link to Comment ChaosEquilibrium
ChaosEquilibrium's picture

Looks like 10:35 a.m. is the "Official World Bailout Buy Time"......I wonder what the time will be tomorrow?

 

Anyone have a copy of the schedule sitting around?":)

Thu, 06/20/2013 - 10:49 | Link to Comment Inthemix96
Inthemix96's picture

If anyone doesnt think this shit show could get any worse, remember this, and even I struggle to get my head round it,

The 'O' has increased your collective debt load more than every other president you lot have ever had combined.

Try getting your fucking head round that 'cos I am positively struggling to do so.

We are beyond fucked kids, and when the worm turns?  Who knows, but people will want vengance for being ruined by the rentier class, mark my fucking words.  These people are not just insane, they are maniacs at the wheels of power with no fucking idea what they are going to do to the rest of us.

Thu, 06/20/2013 - 10:51 | Link to Comment trader1
trader1's picture

so now we know what was discussed at bilderberg/g8...

or

was bernanke simply testing the market reaction...

or

are we all fcuked b/c no one can really keep this house of cards balanced...

Thu, 06/20/2013 - 10:52 | Link to Comment Monkeyfister
Monkeyfister's picture

I've been long on US Treasuries, and am laughing, laughing, laughing at the equities angst right now. I "Bought The Fucking Dip" on UST's since 2007, and already seeing reward for the patience. I can't feel sorry for anyone who bought into the Rube's Rally in Equities. Imma git rich slow, with no loss!

 

 

Thu, 06/20/2013 - 10:54 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Is 3% GDP a real prospect for later this year?  That is the core of Bernanke's position -- that it is.

The Sequester kicks in next month with DoD furloughs.  And 1 October begins the 2nd year of the Sequester for another $120B off the spending baseline (only $56B this year cuz of the January deal that delayed it to March 31).  This is not the stuff of fiscal stimulus.

Unless . . . unless Bernanke has been told the GOP will cave in August and undo all of that, permit the debt ceiling raise unconditionally and maybe even goose the numbers with more spending.

But without any of that, 3% late 2013 seems . . . bizarre to expect.  Bernanke has said there will be no taper if the data isn't good, and it's hard to see how it will be good.

Thu, 06/20/2013 - 10:55 | Link to Comment Freebird
Freebird's picture

Appropriately, lean hogs are also in the green this morning.

Thu, 06/20/2013 - 11:00 | Link to Comment Monkeyfister
Monkeyfister's picture

Bankster-flavored Long-Pig is going to free for the taking, pretty soon. They'll be littering Wall Street, and easy to find-- just look for the open top-floor windows of the Banks. Be sure to bring a shovel. Hamburger on the sidewalk side, roasts on other-- just like road-kill venison!

 

 

Thu, 06/20/2013 - 10:56 | Link to Comment Caveman93
Caveman93's picture

Ashes...ashes we all fall down!

Thu, 06/20/2013 - 11:00 | Link to Comment thismarketisrigged
thismarketisrigged's picture

how many times does maria ask the guests on cnbc today if they are buying this dip?

 

that is by far my favorite part of the day, it is so fucking funny. 

 

well today it seems like no one is buying this fucking dip, so fuck u wall st

Thu, 06/20/2013 - 11:00 | Link to Comment stant
stant's picture

squadron stength hidenburgs in missing man formation. more scandals coming soon

Thu, 06/20/2013 - 11:07 | Link to Comment the grateful un...
the grateful unemployed's picture

how important is the Fed? if Obama thinks its important he'll put a white male in charge, if he thinks (as Bush did) that the Fed is a subagency of the UST, undercabinet position, head of monetization, then he'll appoint a black or a woman, (or both) and he will do it pretty soon because the position isn't as important as most of us think it is.

otherwise he waits, vettes the new WM thoroughly, and gets the markets approval through a few trial balloons. (my personal thinking is that Fed has lost all independence, and Obama will toss out his decision casually after a few beers with Boehner.)

so who is really running monetary policy?  not Bernanke that's for sure...

 

 

 

Thu, 06/20/2013 - 11:51 | Link to Comment Dr. Engali
Dr. Engali's picture

Yellen will be the next fed chair person and she will make the Bernank look like a piker when it comes to printing.

Thu, 06/20/2013 - 11:08 | Link to Comment adr
adr's picture

Wake me up when we erase the full retard rally from November on.

We aren't even back to the levels at the beginning of May. OH MY GOD OIL HIT $95!!!!!! dropping like a rock.

Fuck, oil was $85 a few weeks ago.

Even going back to November levels means we haven't even scraped the first layer of shit off the pile of steaming crap Bernanke has built.

When Amazon and Netflix drop to a "reasonable" P/E of 17, maybe then we'll have some semblance of price discovery.

EVERY STOCK IS AT LEAST 50% OVERVALUED.

1000 as a reasonable value of the S&P is being generous. AT least that level can kind of be met with a, meh OK I guess you can  kind make a case for it, not really but it is plausible.

1600 is just absolute insanity. Especially with the fact that most of what makes up corporate earnings is full mark to fantasy bullshit.

Thu, 06/20/2013 - 11:08 | Link to Comment CheapBastard
CheapBastard's picture

Lots of anst in Australia and China's demand plunges for their iron and coal. Gonna get ugly Down Under. We see the riots in Rio where China's demand for Brazilian steel has tumbled.

Thu, 06/20/2013 - 11:07 | Link to Comment yogibear
yogibear's picture

Time for the S&P to fall and close well below 1600. Cascading drops.

Thu, 06/20/2013 - 11:15 | Link to Comment ChaosEquilibrium
ChaosEquilibrium's picture

FED has a FORTRESS at the 1600 level....10 year rolling over to only be BAILED( by someone....I wonder WHO) at the 1600 level....seems like this game will be played ALL DAY.....but in the end:

 

Markets MUST NATURALLY CLEAR!

Thu, 06/20/2013 - 11:39 | Link to Comment cloudybrain
cloudybrain's picture

im buying the dip, except for gold and silver im out of that game

Thu, 06/20/2013 - 12:29 | Link to Comment Kreditanstalt
Kreditanstalt's picture

Gold & silver ARE in the "dip".....!!!!

Thu, 06/20/2013 - 12:32 | Link to Comment cloudybrain
cloudybrain's picture

but i dont see the bottom yet. im not comfortable in trading gold and silver

Thu, 06/20/2013 - 12:39 | Link to Comment Kreditanstalt
Kreditanstalt's picture

You don't "trade" gold and silver...you SAVE in them

 

Thu, 06/20/2013 - 11:39 | Link to Comment ChaosEquilibrium
ChaosEquilibrium's picture

FED just 'capped' 10 yr at 2.40 yield today.....EVERYONE can go home and go about your daily business:)

Thu, 06/20/2013 - 12:15 | Link to Comment Kreditanstalt
Kreditanstalt's picture

Don't look now, but the POMO money is "BTFD" again.

Thu, 06/20/2013 - 12:19 | Link to Comment devo
devo's picture

Guys, this is what is going on: tapering will now be done behind the scenes and forever. They don't want the public circus--too much bad press and notoriety for the FED. They're willing to give up 5 or 10% in stocks to move the circus backstage.

Thu, 06/20/2013 - 13:28 | Link to Comment HardlyZero
HardlyZero's picture

But we will miss the POMO.   They will flip the tarp over his cage.

The POMO fed the market and did tricks on our investments.

Poor poor tapered POMO.

Thu, 06/20/2013 - 12:47 | Link to Comment rejected
rejected's picture

IMHO...... Fake sell off.... to suck in fresh meat. Real sell offs don't dip a couple of hundred then meanders around!

 

BTFD for those that think freshly created fake money is wealth.

 

 

Thu, 06/20/2013 - 12:55 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

Agreed.

Thu, 06/20/2013 - 12:59 | Link to Comment devo
devo's picture

Plus "taper" means massive expansion, just at a slower rate.

Even if that does happen, which it won't, it's not contraction.

Thu, 06/20/2013 - 13:41 | Link to Comment Kreditanstalt
Kreditanstalt's picture

Now VERY straaaange...market keeps approaching S&P 1,600 and then up a little, approaching again, up a little....almost like there is PPT support at exactly 1,600...!

Thu, 06/20/2013 - 12:54 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

FLASH!  A statement from Ben Bernanke made today at 3:30PM EST, "Taper?  Who said anything about taper?  I said "paper."  We will begin papering in September.  I mean, we will begin to admit to papering in September."

Thu, 06/20/2013 - 13:34 | Link to Comment Bully
Bully's picture

So beautiful watching everyone buy gold and silver all the way down. Brings a tear to my eye. Going to be even better when the rates increase more rapidly. "Why my gold no valuable? Where is World War Z?"

Step 1) short metals

Step 2) profit

Thu, 06/20/2013 - 13:34 | Link to Comment Kreditanstalt
Kreditanstalt's picture

YOU can only defy fundamentals so long...

Thu, 06/20/2013 - 13:42 | Link to Comment Bully
Bully's picture

Not complicated to see the fundementals from where I'm standing. Interest rates rising while inflation stays under control, the conclusions draw themselves. We're days from $1200 Gold. Buying at $1400 made absolutely no sense, buying at $1350 made even less sense. It's literally throwing away your hard earned money. You buy when a clear recovery is already underway. This savaging is going to continue, at least get your money in good. 

 

I get that most people put this in a prepper-type bunker where their guns and beans are, and hold it 20 years. But after 20 years when you go to sell it (if you don't die first), you'll find you could have made considerably more being a bit smarter. There were ample opportunities to sell some of your physical and retain your profits. But that goes against the programming of a brainwashed gold bug.

Thu, 06/20/2013 - 14:17 | Link to Comment devo
devo's picture

This is stupid. Nobody knows the correct price of any financial asset. If you own a house or stocks, you will get crushed, too. If you're shorting PMs you'll get crushed one day, too. Buying SPY made no sense at 1600 or 1500 or 1200. Stock bugs and paper bugs blah blah blah. 

Most people who buy gold do so as insurance and don't have 100% in it, so the price doesn't really matter since they're not flipping it.

Thu, 06/20/2013 - 14:29 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

So Ben's gets a D- in his first semester of the "managing the exit" curriculum; I wonder how things will go when he graduates to actually pulling the punchbowl as opposed to talking about it.  (Oh yeah, he'll never pull the punch bowl...)

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