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Gold Retraces "Stop Logic" Selling Fury As Equity Hopes Fade
With the cash bond market closed, the indicator of choice (short-term T-Bills) remains absent from view but it is clear from the equity market's reaction (plunging back to T-Bill reality from Friday) that hope is starting to fade. Gold and silver are in demand (+1.2% this morning) and appear the preferred safety trade as Treasury futures imply only a 2-3bps compression in yield at the long-end (and only -1bps for 5Y). The Gold rally has recovered all the losses from the "stop-logic" idiocy from Friday's open - though we are sure there are plenty more G-20 members lined up ready to support the status quo (after this weekend's commentary). Equities have eradicated all Friday's gains and are testing below Thursday's close (S&P -14 points from Friday's close).
Gold retraces entire crash from Friday...
as stocks lose all Friday's gains...
and bonds appear very quiet - no "panic" bid and the short-end is notably underperforming...
The USD is under pressure (-0.25%) led by strength in JPY and a bid for CHF too...
Charts: Bloomberg
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Deal or no Deal? Irrelevant, as the calories available for consumption by humanity are what they are. Get your tribes in order and instead of focusing on the return on capital be concerned about the return of captial...
return of captial...
What a quaint notion in this era of being Corzined!
DaddyO
After thousands of years the value of gold still plagues us.
Something needs to be done about China. They've stopped buying our treasuries and are buying the barbaric metals...clearly they've gone insane.
There is a cerain irony that China is using the US dollar to buy back the gold we stole from them prior to WWII. Or maybe that was the plan all along.
During the epic, Apollo 13, one of the Engineers attempting to save the crippled Spacecraft nailed it down to the basic problem.
It is about Energy. It is all about Energy when any problem is reduced to basics.
If you are flying then the heights that you can soar is dependent on the Energy consumed. If you run out of Energy then all of that potential energy stored, as with an aircraft with altitude, will turn and work against you. (Energy and work are synonyms)
If you can maintain a level trajectory you can, perhaps, glide in for a landing. However if the trajectory is too steep then you are headed for a crash.
Think of the Exponential Curve as a Trajectory. When an aircraft attemps to climb too steeply it STALLS. The Trajectory just goes into a uncontrolled Exponential Descent.
Our economy is much like that airplane which has stalled. The angle of Trajectory is taking us to a Crash.
It is about the Energy. And if we do not level this out it will be an INFERNO after the impact happens.
"BRACE FOR IMPACT". Those are words you hope are never uttered in the Passenger Cabin. Many times they will be the last words you will ever hear spoken. Unfortunately you are in the Cabin of a rapidly deteriorating Flight. We have run out of Cheap Energy to keep this Economy elevated and aloft. And the Heights that we have attained...are just going to work against you...
BRACE FOR IMPACT.
Good Morning. Are you ready for another adventure kiddies? Think about it.
Start putting up the "Going Out of Business" signs on the gubmint buildings
the janitor who normally does that for a small paycheck of a few 100K a year is on vacation...
so... no signs...
for more questions visit: www.obamareallyblewit.org or www.obamashouldrunforathirdterm.org
lol.
100k + benefits
Are we there yet?
No, I think we are looking for exit 666.
we never left...
Just goes to show that if you are making non-economic trades, you will make non-economic returns. Those circuit breakers really ended that masterplan and turned it into a masterflop.
Stop watching "market action" for clues on when the collapse is coming. It does not work anymore, it is like that Kurt Vonnegut story of the "humans" trading to get back to earth turns out they are in a zoo.
Look for signs like the Obamacare roll out was a debacle, was the system hacked?
Earth creature in his native habitat. He has found The Twilight Zone.
http://www.youtube.com/watch?v=nIZ04AGTjHc
The US dollar has a multitude of headwinds , not least of which is it's massive over supply ( read Fed printing ) It also now faces a downgrade as the world's reserve currency. PM's have but one headwind - the US $ . And the Fed will soon discover that these metal prices cannot be manipulated forever all in the hope of sustaining the dollars status.
GS predicted it, somebody caused it, GS quietly buying the dip. Now who do you suppose caused it it the first place? Wink, wink?
Hal 9000 must have the holiday off.
It's Columbus day....an event to give government workers the day off. The good news is a lot of them are going to get tomorrow off as well.
I'm glad schools are closed too. Gives kids a chance to catch up on their Tweating, Twerking and friending people and check on Jason Bieber and Kardashian updates.
Only ignorant vacuum tubes would target something as silly as a Dow:Loaf of bread ratio of 1:1
When you look at the big picture, these are micro moves are meaningless.
Any major dips are buying opps. That's it.
I saw a Chimpanzee dragging a Giant Pipewrench headed towards wallstreet. Wonder what he is going to do with it.....
Hint they often dont advertise opportunity like this......
I'M STARTING MY OWN RESERVE CURRENCY!!!!
all I need is a printing press... and a few million guys willing to fight my wars to kill those who doubt my superiority...
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1. Beard
2. PhD in economics
3. Teleprompter
Gold is just a trade at this point. Physical leaving comex and LBMA is creating a loss of confidence in paper. Paper/physical ratio rising with every delivery to the east. At some point paper will drop to near zero.
'Markets' now just gambling dens for degenerate guessing addicts.
This gold move is doomed before it gets ALLOWED! Quit thinking there is hope for metals. As long as the Fed is on planet earth - Metals are a SHORT...Period!
Metals are a BUY, as long as there are any to be found. That's the LONG and the SHORT of it.
I agree we needn't be chasing any prices though, but short it? Heck no.
this is a fucking joke.
how the fuck are futures down basically nothing?
futures should fucking be down 40 s&p points, it went up on bulllshit and now that it turns out to be total bullshit, give back the phony gains.
instead, we will rally another 50 pts without losing anything when they ppd the debt ceiling for 6 weeks.
fucking pathetic,
Fucking insane to expect or bet on a crash in a market which just goes north.
Get used to SnP 18xx pretty soon.
And gold and silver a lot lower.
Get that - or pay the price of ignorance.
I remember the exact same sentiment over the NASDAQ....and gold....not that long ago.
Still waiting for sub $250 gold with the Goldbuggerer are we?
Your comment is the ignorance. It takes a long time to buy a decent amount of gold. In 2 years time gold will easily be 2500 or 3500 / oz and people who followed your "advice" will lose out completely.
Get 1/10th oz gold now, get agq calls to 2015 now, get silver now and get gold ounces from some of the paper profits from those agq calls in a year.
Avoiding gold now at the lows is insane. Literally dumber than a hammer to the skull.
.
"how the fuck are futures down basically nothing?"
hey buddy,say ur name and uve got ur answer...
My mantra into 2014 summer around July / August:
Stay away from whipsawing PMs.
Protect yourself against being sucked into PM bullish sentiment.
Protect yourself against being sucked into "Indices and stocks are overvalued".
As in coming months main markets will be much higher and PMs much lower.
Very much to the opposite of what ZH thinks where the real value should be, will be.
From summer 2014 on though it will be time again to get into PM markets.
Do your own decisions as of course I could be dead wrong.
Unlikely though.
SnP 18xx in coming weeks and months.
i can't keep up with the casino markets. i will keep putting my wages into something that i know has value. guess what that is?
Toyota mid-size sedans?
What brings you to the axis in summer 2014? What happens then that introduces change?
His crystal ball told him so.
Maybe it was Mentalo man?
Ben and Yellen will force the dollar lower to boost exports given the dismal earnings this quarter. Expect gold to react.
Gold and silver can't go a lot lower; we are within what, 10% max of cost of extraction + refinement as to both precious metals.
Professionals buy at this level ... 10% downside and that is temporary; 200% upside in the next three years.
Keep an eye on M2 velocity
Zero Hedge endlessly pumps gold and it can't stay above 1300
Zero Hedge endlessly takes shots at bitcoin and it flys over 130
What gold did the U.S. steal from them? Or are you writing from Japan.
To attempt to infer anything ( other, perhaps, then a bad ending) from a market whose only fundamental is CB manipulation is a fools game. If the fix is in on your particular horse, atm, God bless you... It will end up on the dinner platter sooner or later.
As to those of you who like to bash PMs while holding paper in one of it's derivative forms, aside the fact that you are someone elses whore, someone who sees your value as ranging somewhere between an ant and a cockroach, you miss the point.
An ounce of gold or silver is worth an ounce of gold or silver the value is intrinsic, and not determined by the capricious nature of a class of psychopaths and sociopaths that appear to have convinced some of you that even the metals are nothing more than fiat... All I can figure is this thinking is the result of what passes for a modern education...
We shall see how this plays out... those of us either fortunate or not so fortunate as to be around. Let's reserve the bragging rights until such time as we get some real clarity.