This page has been archived and commenting is disabled.
Stocks Soar Most In 2013 As Bullion And Boehner Beaten Down
For the second time in 2013, Congress folded and stocks erupted higher. The early exuberance went dead during the middle of the day as stocks scambled back to pre-shutdown levels and stayed there but as 3pm hit (and rumors of a CR-amendment to the House DL proposal), volume exploded and broad equity indices filled all gaps and pressed up through technical levels and month- and week-to-date green levels. Much was made of the close-to-close gains in the MoMo names, but closer inspection shows they actually closed below their opening squeeze levels - on a day when the NASDAQ saw its best day of the year. Precious metals were lower on the day but dumped as the 3pm move occurred. Bonds were less impressed with the 30Y (solid auction) unchanged and T-Bills selling off ignoring equity exuberance. The USD closed unchanged.
This is the best day in 2013 aside from the January 2nd year-opening excuberance whose catalyst was theoretically in 2012 anyway.
Quite a day for stocks...
As every index ramped at exactly the same time...
But T-Bills didn't seem to be buying the exuberance in stocks...
FX markets were surprisingly quiet - though under the surface EURJPY was in charge of 'carrying' stocks higher
Gold (and silver) were smacked early on as normal around 830ET then as the equity ramp hit late on were crushed once again...
Silver was slammed back down to shutdown levels...
But Treasuries rallied as stocks did...
The cross-asset-class story since the Shutdown...
Charts: Bloomberg
»
- 10734 reads
- Printer-friendly version
- Send to friend
- advertisements -
Futures selling off nicely after the bell. Looks like some congressional staffers are selling before the big meeting.
Manipulated (marked-up) back to 1685 ESZ3 by flashing large blocks on the bid side within the last 20 seconds before the critical mark-to-market pause.
It's easy to think the market is dysfunctional until you realize it's doing exactly what the people in charge want it to do. It's like a well-oiled machine, at least for now, and they can make it do whatever they want.
A day may come when it will all blow up in their faces, but it is not this day. </Aragorn>
They cannot allow a weekly mark down of their astronomically leveled up portfolios (mark down = insolvency).
Yeeeeeeah, all the corporate sheeple's 401K's are up today!!! Quick log onto your account you don't control and enjoy the moment!!
To succeed in life, you need two things: ignorance and confidence.
-- Mark Twain
I swear I'm gonna dump my IRA into phyzzz when that CR comes out.
Why don't you do it right now? Bullion Vault in London is IRA certified as a holder; and they vault real Silver Bullion in real vaults. 100%. no joke. You'll be glad you did.
Bullionvault.com/ google it and read all about it. it's a real thing.
It's war... of a kind.
Support the truckers headin' to DC this w/end for the Constitution and the Bill of Rights.
SMOAR! FUCK YOU BOENER
Boner....ObaMao's little buttboy.
I think people are jumping the gun on this news. The Republicans called for a temporary raising of the ceiling until late November, and no end to the shutdown, and the White House has yet to agree. It's another fake deal by team globalist to boost the markets. All talk at this point, nothing concrete, and nothing accomplished. The "can" hasn't even been kicked by this yet.
Obama rejects GOP proposal. No surprise here.
http://www.zerohedge.com/news/2013-10-10/stocks-collapse-after-obama-rej...
The December ES contract refuses to follow the cash S&P; less mindless enthusiasm. I put in a sell order at 1700 just in case there's some follow on to this particular looney rally. I don't think it's likely; but it's like asking Santa Claus for someting; sometimes you get it and it doesn't cost anything to run the order.
now wouldn't it be amusing if these talks fall apart...
I bet by morning we get the 'deal off' headline to shake and bake the markets again.
I bet we don't
LOLMFAO
If they do, you'll know Boner and the Boys were long today and went short at the close, and if you knew what was going to happen, why wouldn't you be buying with every liquid penny you had to your name??
insanity!
OPEN THE POD BAY DOORS HAL, I'VE GOT SOME TESLA SHARES TO SELL!!!
Sorry Dave, you must hold those shares for heavy losses.
Any more proof needed that these people feast off .gov largess?
Accidental justice : Kwame gets 28 years
http://www.cnn.com/2013/10/10/justice/detroit-kilpatrick-sentencing/
A Presidential pardon is forthcoming. A lot of that money went to you know who.
Just more training for anyone with any sanity left to beat you into retardation....this is the future of humanity all downhill from here!
Optimist.
So the moral of this story is that temporary shutdowns have no negative consequences whatsoever and in fact have accretive value to the economy. Got it.
Nothings more bullish than totaly fucking over the serfs again.
accretive value to congressional insiders
big time
The moral is hyperinflation creates volatility. A lot of money and credit was given to people to make huge short term bets up and down.
Stocks are just what people know and they have a normalcy bias there. It is the favored casino. Rarely hedged by the big private money, and plenty of action.
I think people believe the correct way for big private money to hold gold, if they think a financial meltdown is coming, is to own the metal and be short the paper. That way there is little to no net exposure if you are wrong, but if it all blows you up, you have the gold. Of course you have to own it outside the system, because the CME/dealers/bankers will steal it. I think the recent activity of disappearing physical and paper price drops indicates that to be the case. This is especially true for the TBTFs who will be allowed to just walk away from their contracts.
Dollar up and yields down. Lulz.
And now to pull the rug again for another trade. Political action or antagonism mysteriously follows big stock swings. At least this keeps that cunt Feinstein and her money manager husband too busy trading to try and ruin some sector of the economy for profit.
as i said before------ long SPY/short GLD -----easy peasy lemon squeezy.......
I don't know why you're getting junked on that, unless it's two pissed off people that missed the boat. If they don't have this theater of the absurd figured out by now they're fucking retarded.
Right as it may be, my first inclination is to junk out of disgust at anyone seeking to profit by playing along with the criminals. It's hard to make moral choices in an immoral world (edit - but I didn't junk, trying to control those impulses ...)
oh please get off your high horse. im not talking about investing for the long term based on the sound health of this country or its financial system. why are you on zh? tyler has provided plenty of good short term anti goldman trades over the years.
I think ZH is not just about trading, or at least some of the community is. Playing along with the game comes at someone else's expense and does the bidding of our evil masters. Make of that what you will.
zh is certainly more than trading. but do you vociferously object every time zh puts up a gimme trade? you are making more of this than it is. my only point was that the markets would shoot up and gold prices down as soon as the markets felt the two sides would come together.
are you living off grid, utiliziling no dollars, no bank account, bartering for everything? if not, then please dont preach about doing the bidding of the evil masters. if you are in the matrix, you support it. period.
That may be true, but I believe you are better served taking the "free money" the fed is giving us and exchanging it for real tangible stuff on the beat downs. The immorality is the fact that the fed is stealing your buying power. There is nothing wrong with looking out for your loved one's best interest.
im gellen with yellen, im buying what goldman is sellin!!!
thanks doc. im no genius, but i did tell people it was the most ridiculously obvious short term (i emphasize short term) trade to make once the two parties agreed to end the farce. im not espousing any ideology here. just a quick buck.
It will be interesting to see if GS gets more than day out of their "slam dunk sell" gold call. That was all they got out of their "buy gold now for the short term risk is higher" at 1370 the day after their failed "no taper" call. They are inscrutable in their motives. You never can tell what they are trying to do, even when it is made public for muppets. We shall see how this plays out.
So, you think the farce is over? I think this deal is an obvious red herring, since it only raises the debt ceiling until November, and it doesn't end the shutdown. The talks could just as easily fall apart (fall apart theatrically, that is). If you want to ride the Boehner rollercoaster, that's your business, but these "deals" are only tabled to manipulate the public and squeeze what little wealth is left out of the country.
but these "deals" are only tabled to manipulate the public and squeeze what little wealth is left out of the country.
agreed!
buy low sell high
where have you been fonz? anything exciting happening on cnbc?
Wrong. Long everythig, short the dollar.
'As I said....' hey how's that treatin you guys now?
Fuck you incumbents. You're all fired. Just wait.
that was Barry's plan, and it worked
let's see if any the so called Tea Party leave the safety of the Republican caucus and stand as independents or better still as a part of a 3rd party
clearly trying to change things from within does not work
If they're thinking people like them for this shit acting, they must all have gotten lobotomies.
Saw this coming days ago. Presumably AU will find a floor above $1250, but I would not be at all suprised if they try an April-style raid on it to get more downward momentum going.
TPTB really wants some room to navigate for Yellen, and that means pushing AU as low as it goes before QE4EVAH/anti-taper 2.0 happens since we're clearly sliding into an even deeper recession right now.
What I'm really looking forward to is seeing Yellin upping QE to 110 Billion a month and gold prices falling $50 immediately.
"Its because the markets anticipate improvement in the economy from this bold initiative" the TV will say.
Gold down yet again! Yellen, debt, Obama, etc and Gold is down, what a fucking joke!
Looks to me like they'll have to stoke up the Syria war effort again now since this diversion is apparently over and they now need constant chaotic events daily.
I'm sure that was on the menu
Psychology is powerful.
People must be selling their Gold for Bitcoins.... converging charts
Yellen + a Republican cave
a blue ribbon week for Barry, Harry and Botox
Hard to have much sympathy for the republicans (not that I had any to begin with) when they repeatedly hold up the entire process screaming about how its time to "stand and fight" principled battles, only to fold completely, again.
I have read that when one owns two dogs and they are fighting over the alpha position, and you can see one of them is losing but not yet giving up, the correct thing to do is punish the losing dog whenever it puts up a fight with the winning dog in order to speed along the process.
The republicans have earned the utter comtempt the public will now have for them and I hope they are electorally beaten into submission so we can just get on with this already.
Why so serious?
Yeah, that's kind of the position I'm coming into. Good analogy...where is the line for the ones who get to punish the losers? What form does it take? Because I think the Repubs could probably make a mint selling places in line to physically kick their asses. Like gold, physical is far superior.
When two dogs are fighting and one dog is losing – and you say it’s the Republcan dog that’s losing - and he is the dog that is punished, then the dog that is winning - and you say it’s the Democrat dog - gets all of the fruits of the victory, then in this case the winning dog – the Democrat - gets to destroy the American system.
And if you are right and favor this approach, and the Democrat dog is the winner, then you favor the loss of the American system; IOW, based on the principles upon which this country was founded, as an American, you are a loser along with all of the rest of us.
Its going to happen no matter what. The only choice is whether the red team or the blue team deliver us to the consquences of our current path more quickly. Lets pick a winner already.
As George Carlin said, we are circling the drain. Each time we go around one more time, we say, "see? we are still above the rim, its not too late to change". But each time around is a little faster than the last time right back to the same place we just were only a little lower. Last debt ceiling fight was 6 months ago. Time before that was 18 months ago. This time will be 6 weeks if they get a deal... Next time, probably 1 month. Same thing every time.
Lets get on with it.
“Right back to the same place?
You’re not paying attention: this is not the same place; this is the last place; this is the last ditch. The specifics are easy to understand: Obamacare is government health care leading to single-payer, leading to state control of property… Don’t you understand? That’s the end of your ambitions, your life’s work, the chance for giving any of the fruits of your labor to your descendants. Of your liberty.
Surely you have noticed the arrogance of this voter-mob elected president and the vulgarity of his radical, rigid superior attitude as if celebrating victory as a dictator.
Dear TollBuilds: You give this guy what he wants and I will guarantee you, he will take every single thing you have. And if that’s your purpose, please do not drag me with you.
I agree Obamacare is a terrifying godawful mess which will make people pray for a Canadian or Scandinavian style single payer system as an alternative (and that may be the point of the exercise).
Obama is not only guilty of doubling down on nearly all of Bush's terrible policies but he seems to have an ideological hatred for what typical Americans like to think their country stands for.
I had some hope when a bunch of Ron Paul supporters threw tea bags into a fountain to protest the TARP bailout regognizing that it was the first of many to come. But the Republican party was stupid enough to insist they be brought into the party and they were dumb enough to allow it to happen. Their inability together to provide any kind of coherent opposition to Obama is making things much worse much faster than they would have been.
I don't know why you think the Republicans wont ultimately take everything from you just as surely as the democrats will. Neither of us is in control of much of anything outside our personal lives, so we can only watch as events unfold.
I dont happen to think even President Ron Paul could have done much to stem the tide at this point. I gather you disagree but I honestly wish you luck.
Now I guarantee all the political fluffers, Limbaugh, Hannity etc, will circle the wagons and advise their listeners that although you just got kicked in the nuts again, keep supporting the sellouts. It's their job.
As much as I disagree with much of what Limbaugh and Hannity say, the American people have awakened to the danger of socialized health care and the slippery slope leading to state control of property, rights of assembly, and most all aspects of serfdom. These gentlemen, to keep their ratings up, have stood with the conservative base of the Republican Party in its most important hour.
And if they now put out a call that we should fight even harder, then I, for one, will respond.
'Fight harder'? What do you mean?
First order of business: Stop repeating the talking points of the Democrats (like calling Cruz, Mike Lee, Limbaugh and Hannity right-wing nut jobs who do not speak for most sensible Republicans). Second: Start recognizing the people who are fighting to stop Obamacare and support them by repeating their positions - backed with the truth of what they say. Third: Get ready to go to the streets when Americans begin to realize that if they don’t go to Washington and pull these people out they will be facing the only alternative they have left: Revolution!
We are fighting lies and tricks. Trick:
Obama invited Establishment self-styled conservative commentators who oppose the shutdown to a closed meeting in a Democrat strategy ploy on Oct 8 to use these journalists to divide Republicans on the issue of Obamacare and to persuade them to go softer on Obama.
Ben Shapiro, editor-at-large of Breitbart News said of the meeting, “In a clear attempt to woo largely establishment conservative commentators who have loudly opposed the GOP’s current government shutdown strategy, President Obama held an off-the-record meeting with the Washington Post’s (Mondale Speech Writer) Charles Krauthammer, the Wall Street Journal editorial page editor Paul Gigot, National Review’s Washington editor Robert Costa, syndicated columnist and former CNN co-host Kathleen Parker, and Byron York of the Washington Examiner.”
Which one of the above wrote the following statement:
…”the House Republicans are once again in disarray and this is the perfect time to demand even more concessions. However, with their political credibility, and capital, already at record lows, will the republicans agree to not only fold on the debt ceiling, albeit temporarily, but also passing a Continuing Resolution - which as a reminder was the source of contention all along”?
The answer is none of the above. It was a Zero Hedge summary.
http://www.zerohedge.com/news/2013-10-10/senate-democrats-warn-debt-ceiling-extension-may-not-pass-unless-republicans-also-ag
Never mind, of course, that John Nolte reports on Breitbart News that “between September 29 and October 6, Democrats have lost a four point lead in Rasmussen's generic ballot that asks voters if they would vote for a Democrat or Republican in the upcoming midterm elections.That poll is now tied at 40% - 40%. At the end of last month, Democrats led 42% - 38%.”
http://www.breitbart.com/Big-Government/2013/10/09/poll-dems-lose-lead-in-congressional-generic-ballot
Well yea some of that would appear to be productive no doubt.
In the meantime, an index of German share prices (1913 = 100) rose from 126 in January 1918 to 531,300,000 in September 1923, and to 23,680,000 million in November 1923 amidst extremely high volatility. (In dollar terms, because of the currency depreciation, the same index (1913 = 100) fell from 101.55 in January 1918 to 2.72 in October 1922, before recovering to 39.36 in November 1923.) The extremely high volatility of the stock market is a typical feature of hyperinflating economies. Marc Faber - Reflation
In the meantime, an index of German share prices (1913 = 100) rose from 126 in January 1918 to 531,300,000 in September 1923, and to 23,680,000 million in November 1923 amidst extremely high volatility. (In dollar terms, because of the currency depreciation, the same index (1913 = 100) fell from 101.55 in January 1918 to 2.72 in October 1922, before recovering to 39.36 in November 1923.) The extremely high volatility of the stock market is a typical feature of hyperinflating economies. Marc Faber - Reflation
Boehner has been saying since the beginning of the shutdown that he wants negotiations so that the government can be funded and people can get back to work, so government spending can be reined in and so Obamacare can be delayed because it is not ready for the American people and the American people aren't ready for it.
So now, Obama is going to talk and Zero Hedge says Boehner is “beaten down.” Looks to me as if Obama is beaten down and the HFT people just may have acted a little hastily. Or is Bernanke just trying to show Americans that the economy, as he views it, wants more debt and more socialism. And it’s always important to remember that the Dow Jones Industrial Average is not the United States of America; it’s even not the equity market. It’s Ben Bernanke.
To say Boehner is “beaten down” is to say that the Republicans caused the shutdown. One wonders why “our side” would say such a thing.
Sophistry -1
Sophistry is intentional deception. and to state before the discussions have ended that you know the outcome is in, my mind, deception. if Boehner ends the meeting by giving up, then your premise that he is "beaten down" would be correct. If Boehner was “beaten down” this morning, explain it to me.
Gold is going to $1000! That'll be the bottom!
soar moar
"Shut Down" = Boner Stimulus
Mark your calendars Girls, OCT 21 is the day the Shit Hits The Fan.
What's on the 21st besides a Monday?
So MOAR debt and MOAR printing mean cheaper bullion. Got it.
My longs are very happy, as am I. :D
Allow me to explain.
End of shutdown/raising of debt ceiling = back to business as usual.
Business as usual = continued deficits and Treasury issuance
Treasury issuance = continued QE to monetize debt through primary dealer, large profits to TBTFs
QE cash to primary dealers + Yellen = higher S&P
1% satisfied momentary threat to continued rape of Republic averted.
What's on TV?
Front running.
Daddy says sell more silver so he can buy more bullions with fiat money he earned from equities.