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Gold's Best Day In 7 Weeks As Stocks Start Month Worst In Over 2 Years

Tyler Durden's picture


This is the first 3-day losing streak at the start of a month since September 2011. Despite the best efforts of the machines to lift stocks into the green (which NASDAQ managed very marginally),  Bonds closed near their high yields of the day, the USD roundtripped with weakness in the US session leaving it unch for the week. S&P futures closed the day-session perfectly at VWAP as many noted the inversion of the VIX term structure once again (short-term 'fear' above medium-term 'fear'). The day's action was punctuated by 4 things - ADP beat (sell), ISM miss (rally-hard), Obama "inequality" (sell hard), BTFD (levered carry ramp 'blamed' on budget deal rumors) - which left the S&P entirely adrift from its relationship with FX carry and Treasuries by the close (amid the heaviest volume in a month). Precious metals had their best day in 7 weeks.


The day in the S&P... VWAP was king (note the lack of volume in the levitation)...


Gold's best day in almost 7 weeks...


Disconnected...FX carry


Disconnected... bonds


and VIX term structure inverted...


And for those hoping for a squeeze of the shorts... they really didn't lay too much out here...


Charts: Bloomberg


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Wed, 12/04/2013 - 17:44 | Link to Comment Occident Mortal
Occident Mortal's picture

Sell -

Buy -


Wow a whole thread dedicated to the trade I have been emploring everyone to take all week long.

Wed, 12/04/2013 - 18:27 | Link to Comment lakecity55
lakecity55's picture

We've drilled too deep!

Run men, she's gonna Blow!!!

Wed, 12/04/2013 - 19:48 | Link to Comment Exponere Mendaces
Exponere Mendaces's picture

Golds "best day" is an up bar in a larger downward trending channel?

Er... you do see the overall trend, right?


Wed, 12/04/2013 - 22:47 | Link to Comment Rock On Roger
Rock On Roger's picture

Yup, cup and handle, you're looking at a small part of the handle.


Stack On

Wed, 12/04/2013 - 17:22 | Link to Comment Occident Mortal
Wed, 12/04/2013 - 17:24 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Is the Treasure balance sheet trending up or down when valued in BitCoins?

Wed, 12/04/2013 - 17:28 | Link to Comment TwoCats
TwoCats's picture

10Y getting awfully close to 3% again...  Didn't we try to start a war (Syria) last time that happened?

Wed, 12/04/2013 - 17:31 | Link to Comment Al Huxley
Al Huxley's picture

If the yen is actually rallying, and not just pausing on its next leg down to the basement, that should be good for gold and bad for stocks.  Would need to see a couple more days of squeezing the yen shorts to firm up the possible trend.   The gold miners were tepid at best today, and given the need to discourage December longs from taking delivery, I'm guessing todays rally in gold is a fake-out.

Wed, 12/04/2013 - 17:43 | Link to Comment Ham-bone
Ham-bone's picture

todays rally in silver looks like the 11th failure since Nov 1st @ the 10 day moving average...also could be a big failure @ the monthly highs seen in Jan '08 and lows of May, June, July of '13...if this fails silver inexplicably, unbelievably could be looking @ $ saying it makes sense but does look likely if the monthly close is here or much lower.

I only say this because the manipulation has been comically predictable from a technical pattern...regardless it making no sense from a fundamental or supply / demand side

Wed, 12/04/2013 - 18:17 | Link to Comment Al Huxley
Al Huxley's picture

If 'silver' drops to 10 and somebody will sell me real Silver for that price, or even for 13 - 15, I'd be pretty happy.  Gold market might function for a while with no new mining supply, but the silver market won't.


That said, I think its too early to call, although the lame performance by the miners is usually a good early tell.

Wed, 12/04/2013 - 18:18 | Link to Comment Ham-bone
Ham-bone's picture

I'm not saying it makes sense...but hard to pretend I don't see what my lying eyes see.

Wed, 12/04/2013 - 18:19 | Link to Comment quasimodo
quasimodo's picture

I was thinking the same thing Al, however at 10$ silver we only get fucked even worse on the premuim spread.


Wed, 12/04/2013 - 18:43 | Link to Comment tawse57
tawse57's picture

Silver at 10 bucks???? That would be a huge plunge and where would it leave gold? 

Slow drift down to 10 or waterfall? 

Wed, 12/04/2013 - 19:31 | Link to Comment Being Free
Being Free's picture

todays rally in silver looks like the 11th failure since Nov 1st @ the 10 day moving average

12th time is a charm?  I mean it has to go above that trailing average sometime, or does it just go to zero?

Don't know much about those chicken bones.

Wed, 12/04/2013 - 17:42 | Link to Comment El Hosel
El Hosel's picture

Show us the Gold..... NOT

Wed, 12/04/2013 - 18:17 | Link to Comment XAU XAG
XAU XAG's picture

Yes Al


We have all been nauty boys and girls so no Christmas presants for us this year................theres always next year

Wed, 12/04/2013 - 18:17 | Link to Comment Al Huxley
Al Huxley's picture

...unless you're long the market, or can force yourself to appreciate the opportunity to accumulate insurance.  Silver linings...

Wed, 12/04/2013 - 18:22 | Link to Comment XAU XAG
XAU XAG's picture

Insurance will increase when GSR hits 70-75-80

or 70-75-70

Will swawp all G FOR S

Wed, 12/04/2013 - 17:41 | Link to Comment Sufiy
Sufiy's picture

Gold Catalyst: Dollar survival behind US-China tensions

  There are no bears left in the equity markets and no bulls are left in GoldBitcoin is rising to the sky and FED has found the youth portion secret: the more you print the better it gets.  Only question is left why China, India, Turkey and Thailand are buying record amount of Gold this year? Now we have the answer and it is spelled out by Press TV this time.  Please keep in mind that it is Iran network, but it is exactly the most important part of this message - who is now talking about it.


Gold Manipulation - Kissinger: "Why is it against our interest to have gold in the system?"

Wed, 12/04/2013 - 17:45 | Link to Comment HUGE_Gamma
HUGE_Gamma's picture

We damand more BONUS CHARTS!!!

Wed, 12/04/2013 - 18:21 | Link to Comment IridiumRebel
IridiumRebel's picture

I sold my gold to the magical EURJPY ferries at the bottom and bought NSACoins! What could go wrong!?!?

Wed, 12/04/2013 - 19:22 | Link to Comment Yardfarmer
Yardfarmer's picture

++IR. NSACoins indeed!.

Wed, 12/04/2013 - 18:25 | Link to Comment lakecity55
lakecity55's picture

Fuck equities (now that I am out except for some miners).

I have been stocking up on alternative stuff. I am even going to re-certify in welding.

I suspect most of ZH is doing guerilla investing.

ZH is great for thinking outside the Box!


Wed, 12/04/2013 - 23:20 | Link to Comment ejhickey
ejhickey's picture

god is guaraneed to go up since increased my short position yesterday and today

Wed, 12/04/2013 - 23:47 | Link to Comment Obese-Redneck
Obese-Redneck's picture

The dip in gold was nothing more than the pit guys in ny getting their chopping money so thei kids could have present this year, if they need more shopping money they will bring it down to 1200 again

Thu, 12/05/2013 - 06:28 | Link to Comment grekko
grekko's picture

It may happen in the pit, but the direction is coming from the ESF and the Central Banksters.  The manipilation /punishment will continue until attitudes improve.  We sheep are supposed to all "Hail" the Almighty Dollar as they attempt to inflate away the mountain of debt.  Unfortunately, the rest of the world is not buying this crapola (ZH'ers never did either).  Buckle up bitchez, the ride will get worse, and the manipulation, until it just doesn't anymore.  Then, on that day, take cover because S will HTF.

Thu, 12/05/2013 - 01:54 | Link to Comment Seal
Seal's picture

Zero-bama would never let the market go down this December

Do NOT follow this link or you will be banned from the site!