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Bonds Bid; Stocks Stall At 50DMA; Gold/Silver Shellacked (Again)
It seems the quarter-end rebalancing flows are showing up in bond-land - 10Y Treasuries were well bid again today (-6bps) for the best 2 days drop in yield in over 13 months. Stocks repeated the same pattern of the last 3 days - the best 3 days of the year - by ramping into the open and generally treading water for the rest of the day. Today, Dudley's comments popped the S&P 500 up to its 50DMA and that was the limit as we faded weaker from there and clung to VWAP amid dismally low volume. Credit markets underperformed notably from the open and while VIX closed down modestly, it also rose from the opening levels. The USD roundtripped from strength into the European close to end the day unchanged (up 0.6% on the week) but WTI did not care and surge higher touching $97 and up 3.3% on the week. Copper flatlined. So bonds and stocks (and oil) moving on moar QE hopes but - and (we are running out of superlatives so we will use 'shellacked') precious metals were smashed lower once again closing below $1200 and $18.50 respectively as QE hopes fade?
Bonds best 2 days in 13 months... as we assume balanced funds (among others) buy bonds to keep their 'balance'
Credit didn't get the same bid as stocks...
but the S&P did it again - ramped into the open, and faded the rest of the day with a snap lower to VWAP close - doesn't exactly sound like agressive buying to us (especially given the utter collapse in volumes)...
but stalled at the 50DMA...
Trannies played a littel catch-up but stocks are still 2% below FOMC levels...
and Homebuilders played a bit more catch-up today but remain (along with Materials) down over 5% from FOMC (QE?)...
Gold has retraced over 50% of its post-Lehman gains ($1301), looks set to test the Fib 61.8% correction at $1156...
Charts: Bloomberg
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"as QE hopes fade?"
WTF Tyler? oops, sarc tag...
Clean up in aisle five.............I'm running out of fiat on these blue light specials........DAMN they know how to get me to buy shit
Let me guess Jim, James and any other prick who has no idea.. "the bottoms in"!!
hopefully the "bottom" isn't in for another month.....I need moar fiat
Maybe this is how paper PMs die. Over the past few years, I've often wondered how those holding paper PMs were going to get their head handed to them. It could be one sucker selling to another as the price keeps falling until it gets to $0 or until there is no physical available although now I'm thinking this can go on well past the point of physical completely drying up.
Well, if you folllow the stacker sites like I do, they are all buying like madmen. And we already know whats going on in China, India, Turkey, Russia and elsewhere. Huge physical demand.
Or you can listen to these MSM shills, dolts and douchebags and the anti gold experts popping up everywhere now telling you its over.
If they want me to sell they are going in the wrong fucking direction.
http://ransquawk.com/headlines/us-fed-balance-sheet-liabilities-rise-to-...
Waiter, there's a tapir in my soup.
you know it is getting close when most are bad mouthing it. getting gosh darn close.
1156 fib retrace of 61.8 has got my interest BIGTIME! and best of all, my home closes soon!!
nice pile of fiat to play with...
Here's my theory FWIW... Maybe the Chinese - who have been buying gold like maniacs with the hope of emerging out of this chaos with a gold backed (reserve?) currency - has let these copper, gold, nickle, etc warehouse receipt re-re-re-hypothication deals get so far out on the limb before slamming the door on them to force margin call liquidation and drive the price down (and maybe they gas it on the way down, too) so they can step in and buy gold at a 30% discount to the old method of buying at the highs. That's how I'd do if it I was a central bank Chinaman.
Dude, chinaman is not the preferred nomenclature...
F*** It Dude, let's go rolling...
~ Walter
bowling*
Noted. You should also note that Walter prefers to use "rolling" in lieu of "bowling," hence......
"I told that kraut a f***ing thousand times that I don't roll on Shabbos!"
~ Walter Sobchak
Here's my theory FWIW... Maybe the Chinese - who have been buying gold like maniacs with the hope of emerging out of this chaos with a gold backed (reserve?) currency - has let these copper, gold, nickle, etc warehouse receipt re-re-re-hypothication deals get so far out on the limb before slamming the door on them to force margin call liquidation and drive the price down (and maybe they gas it on the way down, too) so they can step in and buy gold at a 30% discount to the old method of buying at the highs. That's how I'd do if it I was a central bank Chinaman.
If it hadn't a been for the stocks being propped up as a distraction from reality, Obama and the Congress would have had pitchforks and torches coming at them from 360 degrees in my opinon because people would have noticed that everything else is FUBAR.
No hope for this species...SO pathetic....I'm starting to think every historical 'heroic act' of revolution or whatever from homo sapiens loser species was just made up.
Don't need a revolution, just need a tiny bit of education - historical and scientific.
On NYT comments (supposedly smart folks) people are asking the question 'so what if the government is spying on all
communications?' On zh yesterday the herd was supporting the idea that there's not enough carbon dioxide in the air.
Folks that ignorant aren't going to be very effective at combating propaganda from much more intelligent power systems.
"On zh yesterday the herd was supporting the idea that there's not enough carbon dioxide in the air."
Don't you like plants? Are you a plant hater? My God Jim.
The herd has mooed
I assume you're joking, but there are people on here ignorant enough to mean that sincerely.
Next up the flat Earth folks are going to infiltrate zh - don't need no dang .gov tellin' me that tha Earth is a sphere!! There are scientists on both sides!!!
Actually, if there was a monetary incentive for oil&gas I'm sure 30% of Americans could easily be convinced the Earth is flat.
Hence why some basic education is important. No matter how much money is thrown at something you can't confuse people about basic facts they understand on a practical level. Somehow even a rudimentary level of scientific understanding was left behind by (apparently) many Americans.
Sometimes I forget to hit the /sarc off button. However the herd did moo, somewhere.
sheep - spot on as peoples are destined to do dumb things. democracy lets enuf dumbies steer the ship. without democracy some power hungry mofo dominates ruthlessly and fuks every one. so as the pedulum swings, here we go to moar fuked up from a great balance of power 30 years ago...
Congress would have had pitchforks and torches coming at them from 360 degrees in my opinon because people would have noticed that everything else is FUBAR.
^ that'll be the day.
Yea all it takes to placate an entire nation from totaly corrupt leaders and implosion all around them is a couple shiny trinkets and a few saltine crackers....fuckin stop this ride I want off!
Since 2007 collapse and all the trillions out of thin air since, gold has gained a paltry $400...Worst....Performer....Eva....fuckin pathetic. I'm starting to sympathize with the kamikazees.
Coukl CNBS have trotted out any more "experts" today to preach to the choir: QE ISN'T COMING TO AN END! Buy moar stawks, bonds, commodities....Gold is worthless as an investment....and on and on and on.... FUCK YOU CNBS.
So what happens as it is discovered that there's more paper issued than there is enough physical to go around?
(rhetorical question)
Does it make you a genius to "hit" the drop from 1900 to 1200, but missed the increase from 300 to 1900?
http://www.market-ticker.org/akcs-www?singlepost=3228250
But Denninger knows all! Just ask--about anything: stocks, bonds, cell phones, gay sex, Catholic priests' favorite positions, precession of Earth's axis, the origin of Twinkies...
The man will tell you, he knows everything. And everyone else knows nothing until they listen to him, after which, if they repeat what they learned, they are wrong because only Denninger knows everything.
what we have is a world of internet repeat what i read smart asses with about zero abilty to connect dots and lacking common sense. not to hard to take advantage of :)
I agree with that description.
Plus anybody who disputes his knowledge in same mocking argumentation style gets banned, no matter how good the facts. (KD: "It's good to be king!") But he will always put up some lame excuse why he needed to ban him/her, while still ignoring opposing facts.
Interesting how stocks rise because of QE hopes yet PMs get killed because of tapering whispers.
PMs are basically the Joey Ramone of investing. A big "fuck you" to the establishment.
It's true. they are a big "sit on this" to the extablishment; so it's a war; and they're not going to be polite; or forget to use all their weapons.
PM's would be a big "fuck you" to the establishment if you didn't buy them from the establishment using money earned while working for the extablishment and that was issued by the establishment to begin with.
Dow and S&P both failed to capture the 50dma. GSR resting on support @ 65.40 but looking weak. Miners outperforming gold. Dow/gold spiking but RSI and MACD not confirming.
Today's a little break for Gross, who needs to keep the frightened Pimco silverheads on the train < destination uncertain and unknown >
'Shellacked',... the neo-plutonian hopeia`n fix'd-It!
(we are running out of superlatives so we will use 'shellacked')
What was wrong with 'monkey hammered'? I like monkey hammered. It has a certain overly-intoxicated simian angle that I greatly enjoy. After all, you have to be hammered to think about trading these markets. It takes hard designer drugs to actually trade them.
Metals drop in price might mean the 100 yr bear market in the dollar is ending! http://tinyurl.com/mem7o7x
I'll assume you mean to be humorous. That's really unlikely.
local currency + local labor = freedom. keep using their money and they own you. kennedy, hussein, quadaffi, chavez all tried to clue us in. we're not listening. china, brazil, austrailia and russia are trading without dollar conversion. correct me if i'm wrong, the dollar is done.
Buy silver, buy it and buy some more of it.
I think it costs 3 cents to print a fiatsco.
And tomorrow will probably be yet another +100 DOW futures before open again....gold minus another -$50.
Fuck just pull the rug out already this is just pathetic now....sheesh talking about kicking a dead horse to bits.
SheepDog-One,
Take it easy this is nothing more than the paper system going down the sink,,,nothing has changed, this is still the insiders panic progression,,,relax BTFD and sleep like a baby.....Look all over the world ,,,everything is a vortex with accelerating hyper ventilation. I t will all come back to real MONEY we have never seen this kind of collapse so it will tend to be frustrating, but it is new to all of us and this is how it progresses. You don't think TPTB are in agreement that they are fucked and have lost control.. FUCK THEY HAVE FAILED and I love the smell of dead TBTF in the morning..
Good Evening
The kill switch
everyone can talk about this conspiracy and that conspiracy but the bottom line is that people holding gold and gold stocks are getting crushed. sinclair says to sit tight and do nothing. i hope he doesn't go bankrupt on that tanzanian gold mine that he owns. the destruction is breathtaking. thank god i only had about 5 percent of my assets in gold and gold stocks. i know someone who cashed out a couple million at 1650. gold could easily blow through 1 k, despite what hathaway and the rest say. i'm not selling but i am certainly not buying more. By the way, can you all just stop saying "backing up the truck". I mean really, are you from hills of kentucky or something
>> talk about this conspiracy and that conspiracy
So really, you don't see any suspicious price action? Just normal market actions, eh? GMAFB.
Yes. It's massive institutional distribution. Sellers are dumping. GLD volume is double the 3 month average.
Stocks do the same thing. When institutions dump a stock, this is exactly what it looks like:
http://stockcharts.com/h-sc/ui?s=GLD&p=D&b=5&g=0&id=p79291913187
CandleVolume view of a crashing market.
oh for chrissake, how dumb do you think the rest of us are? What market "crashes" with the actual commodity is on fire? I mean really. Grow up. JPM is manhandling the price, - they were still short 81K to meet their delivery demands on sold contracts.
We have no real regulator functioning.
At this point, no one is actually selling the hard metal, just paper. ......Which still leaves Jamie and Blythe out on the ledge.
I think we should send Jamie and Blythe shovels.
by the by, you do know about GLD, don't you? Custodians, JPM and HSBC?
You can redeem shares for metal if you have over 100K.
Push down the share price, buy, take metal.
How much do you think is still actually in that "fund" ? Anything? Think the "custodians" might have taken it all to meet their delivery demands?
Harvey Organ, who tracks the inventory of both daily, thinks they both have been looted......
so using GLD as your guide to anything shows you don't have much of a clue as to what is going on.....other than swallowing the propaganda about what's happening wholesale.
+1 Lots of gold "experts" showing up at ZH now. After 12-13 years, I've learned to ignore these types, and listen to those who actually know something about gold and mining.
“The industry is not sustainable at $1,230 an ounce, which is where the gold price is at the moment,” Holland said today in a telephone interview. “We’re going to need at least $1,500 an ounce to sustain this industry in any reasonable form.”
Nick Holland CEO, Gold Fields Ltd. (GFI)
http://www.bloomberg.com/news/2013-06-27/miners-can-t-operate-with-gold-below-1-500-gold-fields-says.html
The stock to flow ratio is so high for gold that it doesn't matter to the big banks and the FED if all the gold miners go out of business. They can buy the mines for pennies on the dollar. All that matters is who is willing to sell their hoard at these prices or any ridiculous lower price.
just last year i was reading how miners hedge their production at $1300-$1400
so stop that crap talk about "we need at least 1500"
Well, he said it, not me. Many other miners have said it too. Their costs are going UP dramatically. It's called inflation.
like the Hoffmans!
http://starcasm.net/archives/221114
We definitely have no functioning regulator.
The dollar volume on GLD today was 3.4 billion dollars. could JPM manipulate that sized market? Yes, i suspect it could.
i'm not sure how GLD can avoid the selling the hard metal, to someone. With 30 billion in redemptions on the ETF, they have to sell physical to cover that. Maybe it's a side deal with one of the big banks.Maybe there isn't really any physical, after all. Nevertheless, I can buy physical gold cheaper today. The shortage issue is being exaggerated and misrepresented.
To an old timer, this crash looks like any other crash. High volume distributions. From a pure price/volume perspective, there is nothing strange about the move. On stock message boards, when share prices fall, manipulation is also widely mentioned. Maybe it's true. It could be true.
>> When institutions dump a stock, this is exactly what it looks like:
Bull low knee. I've watched the big boys move out of stocks. Clue, they don't do it with massive dumps after hours.
You're right. I missed that. That chart is full of massive gaps down at open... Not just one or two, but almost every down day. flamethrower stock charts don't look like that. It could be explained by overnight action in asia and europe, but that's sort of tail wagging dog. We move their markets, not visa versa.
tao400- Actually, the term was popularized by Peter Lynch of Boston, Mass. He worked for a little mutual fund company called, "Fidelity". Since Fidelity has some back office operations in Kentucky, maybe he was out here and let the term slip out... If it's not too much trouble, could you use proper punctuation? Yours makes it look like you are from New York or some other educational backwater.
i heard a trucker say once, "if we dont drive, you dont eat".
backing the truck up is the national passtime. before you clamp down on the BTTU, maybe you should STFU.
http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/ch3c1en.html
If you look at the Kitco 24 spot charts you'll see that whereas Gold is down 3% day over day; silver is not. the silver chart is flat for all practial purposes. I would say this is highly significant. I'm issuing an offical Buy Call for Silver. Please don't forget I may be compltely wrong.
Why because surely they can't beat silver down any more and it's about to springboard up again? I don't believe it, at all....I bet S&P will be cracking 2,000 while gold and silver are below 2007 levels....these maniacs are relentless and will never be happy until you're all dead. That's how it looks anyway.
and they are very good at what they do
Even maniacs need to be coordinated, and backed by something other than bullshit. The US just got a taste of Euro style "pay no attention to the man behind the curtain" gobbledygoop. I believe this is the same pattern, too. Get the sheep dependent of foodstamps and unemployment and shovel them the bullshit curds. It will end, but the end won't be obvious to the masses.
I'm holding, buying when I can.
>> .these maniacs are relentless
How long were they able to hold the miners heads underwater, against all logical evidence of their folly? No, these fucks can keep this up for years and years. I may be aboard, but it's my opinion gold and silver are dead money at best. The petro dollar will be defended to the death. When, and if, gold gets up off the carpet, the old US of (used to be)A won't be a place you want to be hanging around.
How does anyone not on margin get killed?
45 Acp, right between the eyes will do it
Jumping off a tall building
playing on the Interstate
pointing a fake gun at a bunch of cops
pulling a lion's tail
Space Shuttle
Tornado Chasing
Fooling around with another guys wife
Long term smoking
Heavy drinking
Infected Broads
McDonalds
Mad Cow Diesease
Rattlesnack bite
Grizzly Bear attack
....
You left out "Messin' around with Slim" - coz everyone knows... you can pull the mask off that ol' Lone Ranger, but you don't mess around with Slim.
huh?
"I'm issuing an offical Buy Call for Silver"
Can I get a second?
Shorted the stawks today @ 1607 basis Sept. The ES contract on the CME. I have a hard time believing what I'm supposed to believe; and I've never been very good at doing as I was told.
Ballsy move for sure....the machines are stoked to pry out a bigger 2 and 20 for Friday quarter end.
Holy heck, our friend the Russell did a classic, unstoppable, amphetamine drip hamster-wheel ramp-a-looza, careening past the 50 DMA like an autobahn mile marker, easily filling half of the June 20 gap. I suspect this may be the last hurrah for a while, punishing naive shorts like middle school milk-spillers, but you gotta give credit where credit's due, and the Russell ninjas spanked the moose something fierce today.
I got out of just in time....
It will be ready for another kicking down, just wait....
.... and it will feel SO good when it does, like sneaking up on the class bully from behind with a large grave-digger's shovel: THWACK !
Is "shellacked" better or worse than "monkey-hammered"?
Better obviously
it was only a few days ago where i was told by cnbc that the reason the market was going down was because hedge funds are selling there positions to book profits.
now when the market goes up, its because the economy is producing good data.
so never is the market down because the economy sucks. its either profit taking, or people buying because things are great.
please crash tomm, id pay so much to watch it happen.
Deflation it is.
I hope we will have a long protractex collapse - like Japan - and not a hyper-deflationary "sudden stop" like Weimar
Hold on to your US Dollars !! Eventually, a single crisp $20 will buy all the real estate in California.
Right ??
During Weimar there was wage inflation. The German government paid workers in freshly printed fiat because it could not collect enough taxes to finance post WW1 deficits and reparation payments.
collapsing gold and silver prices are bullish for equities. PERIOD. i don't care how many charts you put up there that says "equities can't do this"...if the precious is rolling over equities are getting a bid. i do agree the STRONG DOLLAR is a problem...but this gets into issues of competitiveness and debt sustainability. clearly "the debt got less sustainable"...apparently for those "50 state thingy's" (which is probably how these folks on Wall Street look at things. sure they how they've always look at things.) is this bearish? i do struggle with it being bullish. "we're all dead" and that's bullish? hmmm. Germany has recovered since World War II. quite well actually. still...they had fewer "legacy issues." i do agree this particular equity never blinked an eye during this swoon: http://seekingalpha.com/symbol/tsla?source=search_general&s=tsla hmmmm. "ain't no lack of whales in that space." i regard that as VERY bullish actually. we'll see how debt markets do here. junk bonds could be good here http://seekingalpha.com/symbol/jnk?source=search_general&s=jnk. i'm still in "suspension of disbelief mode" though. lot of numbers that still say "ho hum" and not "Jazz Age."
Sure felt like distribution to me--the last three days that is...
And what a fucking battle to keep S&P +10--which was lost.
Never thought I could back up the truck for the shiny shiny at this cost!
Thank you... er... fuck you Bernanke!
Well, the gold paper got shellacked. Funny thing is that now the miners don't seem to be buying that story anymore either. So there is a second decoupling happening. Maybe traders are beginning to get that the miners are able to sell their product at the physical gold price and not the paper gold price
12.85 BTC gets you a 1oz gold Eagle
http://coinabul.com/index.php/best-value/american-eagle-gold-bullion.html
bitches
and just like that.. it's 14.2 gotta be quick
Posted over at Jesse's: [Not sure what the implications are, but it doesn't sound good for JPM with all that gold they have to store.] /sarc off
http://www.bloomberg.com/news/2013-06-27/jpmorgan-s-henry-bath-delists-2...
JPMorgan’s Henry Bath Delists 21 LME Storage Units Worldwide By Agnieszka Troszkiewicz - Jun 27, 2013 9:25 AM PTHenry Bath & Son Ltd., owned by JPMorgan Chase & Co., requested the London Metal Exchange to delist 21 of its warehouses and storage facilities.
"Five warehouses in Baltimore, three in Liverpool and two in Bilbao, Spain, were delisted with immediate effect, the bourse said in notices to members today. Henry Bath also had two Singapore warehouses, and one warehouse in Chicago, New Orleans and Busan, South Korea removed, according to the LME. Six of Henry Bath’s Rotterdam facilities were also removed from the network of LME warehouses with immediate effect, the LME said."
Tyler, there you go. Get on it like a bloodhound. Sounds like these vaults were emptied for some reason (sarc).
emptied, or just had the listings removed?
Now when Asia opens lets see if all those physical holders panic and sell. /s
I'm having a few beers on here tonight and hopefully watching gold break below $1,000
Let's do this already. If it is only down a few bucks I am taking a few weeks off from this place, because it's just going to go on forever.
wussy
I gotta stay grounded and make money and stay afloat. I can't get caught up on here waiting for the asteroid to hit everyday.
True. This stuff can drain lifeforce. Which is prob why big media wont publish it. People would tune out instantly and there go profits.
Tylers are super human to do what they do.
Are they human even???
hmm
Same here. I just want to become self supporting and self employed before the SHTF. I should be thankful said asteriod hasn't hit yet.
Everything paper trades. The problem with money such as gold and silver is that anyone can store it forever. It isn't a farm commodity that goes bad or is hard to store. You can't shake out fully paid for gold by moving paper prices around. If prices drop in an environment like this, gold will always be bought and stored. But, this paper is paper.
The greatest trick the devil ever played was getting people to believe paper was backed by something real.
it is not a problem but a reason to buy gold - namely that it is not perishable
Jeckyl Island Redux at President Run's House earlier this year took place mere days before the first great 'Gold-The Barbarous Relic Liquidation Extravaganza. Also, same time as the minor "goof" about releasing Fed minutes early to all criminals near and far.
It's all goooood tho....
I'll start it up....
"Who's House!!!!!!...."
LOL@ Gold breaking 1190 on a 2%-in-20-minutes re-shellacking just now. BOT 10 oz. Today's a short term low.
EDIT: BOT 10 @ 1188.50 - forgot to put the price in.