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Late-Day Let-Down Spoils NASDAQ Party As Bonds & Bullion Bid

Tyler Durden's picture


Energized by a lower crude oil price - and collapsing JPY - equity markets hit their highs shortly after 8pmET on Sunday night, trod water thorugh the Asian and European markets and started more aggressive selling once US cash markets opened. Coincidentally (or not) when Obama started speaking around 1445ET, US equities took a dramatic dive - catching down to an already weaker signaling VIX rally. EURJPY stayed in sync through all of this priming ignition pumps right into the close as NASDAQ 4,000 close was desperately needed (but the dot-com darlings were all hit). Gold and Silver's early monkey-hammering was met with buyers which lifted then up 0.5% and 0.8% respectively on the day (and 2% off their lows). WTI crude recovered more than half of its losses (-0.6% on the day) but Brent not so much as the spread broke to new 8 month highs. VIX closed higher and Treasury yields trended lower all day from the overnight open to close practically unchanged as the USD lost half its early gains to end +0.25%.


Unclear what the catalyst for the mid-afternoon dump in stocks was - pre-emptive month-end rebalancing? Obama? something in precious metals?



Commodities early smackdown saw a number of bid surges up during the day around the US open, EU close, and before the equit market began to roll over...


Don't get too excited about the Iran peace premium...


Stocks tracked EURJPY once again...


but VIX diverged...



Today's move in context...


Charts: Bloomberg

Bonus Chart: Don't tell anyone but the last 3 weeks have seen gas prices in the US rise at the fastest pace in 5 months...


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Mon, 11/25/2013 - 17:14 | Link to Comment NotApplicable
Mon, 11/25/2013 - 17:31 | Link to Comment Say What Again
Say What Again's picture

When the afternoon selloff started, I went looking through my ES - Pairs charts, trying to find something interesting.  The only thing I found was the RB (Gasoline futures) started rallying in a big way about 30 to 45 minutes prior to the ES move. (I plot the RB inverse to the ES).

Maybe that's the new trigger to watch, as all the rich amerikans head into the holiday season and do all that driving to the mall and grandma's house.  By the time they get to where they're going, they won't have any more money left.  But don't be alarmed; they still have credit cards.

Mon, 11/25/2013 - 17:34 | Link to Comment JPM Hater001
JPM Hater001's picture

It was probably something you ate that moved the gas.

Mon, 11/25/2013 - 17:37 | Link to Comment Rainman
Rainman's picture

efficient markets don't like the Judge who nixed Cali's $8B High Speed Choo-Choo bond sale

Mon, 11/25/2013 - 17:18 | Link to Comment Sufiy
Sufiy's picture

Gold was in dramatic vertical reversal today from low of $1225.80 to $1254 after option expiration and o/night smashdown

The Coordinated Effort To Suppress The Gold Price

We have another view - from Europe this time - on the ongoing Gold manipulation, its mechanics and the motivations behind it. UK financial authorities have launched the investigations in the Gold market manipulations now. We do not hold our breath here, but hope that they will get at least this information for consideration.    Manipulation is conducted on everyday basis with the aim to drive the Gold fixing price in London down and get access to physical Gold, which could be sold at a premium at the next trading day in Asia. "This arbitrage" was a normal source of profit for LBMA banks, but now starting from April of this year we have the additional waterfall smashing of Gold in order to manipulate the QE inflation expectations in the market.

Mon, 11/25/2013 - 17:22 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

I was pleased to see the strong reversal as well, sadly though, don't take your jock off yet, because the cowboy boot has been dipped in water and is in the freezer waiting for us. The banksters will retrieve it at some point and make use of it.

Mon, 11/25/2013 - 17:24 | Link to Comment Mitch Comestein
Mitch Comestein's picture

The Gld and SLV had outside reversal days today.  The gold stock indexes did not.  I have to say this morning was a tough day to be long gold/silver.

Mon, 11/25/2013 - 17:28 | Link to Comment lailapa
lailapa's picture


...the barbarians, who forced beautiful Europe to get down Zeus’ “back” and made her a prostitute.

Mon, 11/25/2013 - 17:29 | Link to Comment Obchelli
Obchelli's picture

What a dip today

2 points down on S&P 7.77 up on dow qualifies as CRASH in New Normal

Mon, 11/25/2013 - 17:37 | Link to Comment Sudden Debt
Sudden Debt's picture

I'm counting on a more severe drop in silver... what the hell is going on here?


Mon, 11/25/2013 - 18:33 | Link to Comment negative rates
negative rates's picture

Checking prices on ebay.

Mon, 11/25/2013 - 17:43 | Link to Comment disabledvet
disabledvet's picture

I think China is about to collapse. Tesla's, Solar Cities...a real deflation not this namby pamby stuff of the past five years. long gasoline? price in pounds i guess. cng is coming next year with Ford...that's a buck a "gasoline equivalent gallon" right now...Tesla will complete the roll out of its battery network next year. that price is "free" if you can afford the car (hundred grand.) the Winklevoss Twins have applied to create an ETF for bitcoins...that could cause a flood of fiat conversions as "normal people" discovery the value of not having to use government mandated "price controls" for their means of exchange. we'll see how gold does but its an awful form of exchange...not the least reason being no one wants to ever part with it...let alone cart it around. in short the collapse of velocity of M2 is met with bit coin exhcanges and "dollar convertability."

Mon, 11/25/2013 - 18:31 | Link to Comment jubber
jubber's picture

was there a large take up for delivery in the DEC Gold and Silver  futures settlement? thats the only thing I can think of for that dramatic reversal, any commentators got the figures out there?

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