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US "Good News" & Draghi Disappointment Sends Stocks Reeling

Tyler Durden's picture





 

The better-than-expected data in the US had the requisiste good-news-is-bad-news reaction as stocks dumped (giving back all the EURJPY-driven gains), Treasury yields jumped, and gold and silver tumbled (in a deja vu of the last time Bitcoin and gold reached parity). At the same time, Draghi cut inflation forecasts, raised downside risks, hinted at less likelihood of another LTRO and noted negative rate discussions but did nothing and that sent EUR higher and implicitly USD broke lower. European stocks are also in trouble once again (even as European sovereign bond spreads are holding steady in their illiquid way). With EURJPY pausing (on Draghi's comments), we look to USDJPY to provide the requisite lift at the cash open in the US...

 

 

and here is what happened last time Bitcoin and Gold reached parity...

 


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Thu, 12/05/2013 - 10:41 | Link to Comment LawsofPhysics
LawsofPhysics's picture

perception is everything as TPTB try to maintain power and control (which is really what this is all about).  I am seeing many leave equity trading (take profits) and go into physical assets cash and FX trading as there is no "market", only coordinated central banker chaos.  God speed you guys, best of luck.  As long as the trees/plants keep growing/producing we should be okay.  Can't imagine trying to make a living based on what a bunch of ivy-league cunts decide to do.

Thu, 12/05/2013 - 10:44 | Link to Comment WayBehind
WayBehind's picture

"and gold and silver tumbled" ... that's a good news for my wallet! Time to load up again and again and again ....

Thu, 12/05/2013 - 10:53 | Link to Comment LawsofPhysics
LawsofPhysics's picture

If CBs really are "the market" now, I really do not see how they would "lose control" unless they 1) commit suicide or 2) there are enough holders of sovereign debt holding to maturity (only then would interest rates really matter at all) or 3) we get a genuine revolution circa 1789.  Personally, I see plenty of bread a circuses before the ignorant masses get that motivated.

Thu, 12/05/2013 - 11:05 | Link to Comment Headbanger
Headbanger's picture

Man, you cheerleaders are getting really creative with your theories in denial of the total collapse starting right before you eyes now!

But thanks for the levity!

And BTW:

http://www.marketwatch.com/investing/bond/10_year

OUCH, huh!?

Thu, 12/05/2013 - 11:08 | Link to Comment LawsofPhysics
LawsofPhysics's picture

If The Fed (and world central banks) is the entire market, do interest rates on sovereign debt really matter?

Guess we get to find out...

Thu, 12/05/2013 - 11:12 | Link to Comment Headbanger
Headbanger's picture

Does F = MA (and you can't push a string?) ??

And does the Pope shit in the woods!!??

 

No, forget that last one..

Thu, 12/05/2013 - 11:25 | Link to Comment Quinvarius
Quinvarius's picture

I don't think he is talking about actual economic recovery.  Just pricing.

Thu, 12/05/2013 - 11:22 | Link to Comment Quinvarius
Quinvarius's picture

I think he is right.  As long as the Government/Fed is willing to continue accepting higher prices, they can buy whatever numbers they want with printed money.  There has never been any chance of this ending any other way than hyper inflation.  I don't care what they paint on the gold ticker in the short term to try and scare people away.  It won't work on me.  The Zim-Weimar stock market is just evidence they don't suppress.  It is going to get worse.

Thu, 12/05/2013 - 10:42 | Link to Comment max2205
max2205's picture

Realing...really....

Thu, 12/05/2013 - 10:43 | Link to Comment NoDebt
NoDebt's picture

And the 10 year at 2.86.  (I'm not as smart as the Tylers and can't think in 7-year terms, so I default to the 10).  

Anyway.... Here kitty, kitty.

Thu, 12/05/2013 - 11:04 | Link to Comment ChaosEquilibrium
ChaosEquilibrium's picture

Me thinks the belly of the curve(5's-7's)will be the area to watch and more volatile as the FED soaks up more and more...then all 10 yr equivalents!

I believe this is where PIMCO/Gross and all the FED friends have been slowly and silently acquiring!!!

 

Forcing the money flows into shorter durations without a matching long?????  What did the FED say about borrowing short and lending long?.......Oh Lehman....Oh Lehman!!

 

I could be wrong......GDP is booming at 3.8%.......The market failure is that Bernanke removed the discounting function from the market....WHY?......ZERO is a VERY HARD LANDING!

Thu, 12/05/2013 - 10:48 | Link to Comment SheepDog-One
SheepDog-One's picture

Must....Save....S&P...

Thu, 12/05/2013 - 10:50 | Link to Comment 101 years and c...
101 years and counting's picture

why?  the game is the same as it always has been.  suck in retail/sheep.  when they're all finally in, pull the plug.  401ks and pensions get killed.  the wealthy get wealthier (since they have already sold and gone short) and the poorest get even poorester.

Thu, 12/05/2013 - 10:54 | Link to Comment DeadFred
DeadFred's picture

The 10y is in more danger now. This is the last line of defence before the dread 3% level. It could be an interesting day. :)

Thu, 12/05/2013 - 11:07 | Link to Comment LawsofPhysics
LawsofPhysics's picture

If the central banks of the world are the "market" when it comes to sovereign debt, do interest rates on sovereign debt really matter?

Thu, 12/05/2013 - 10:58 | Link to Comment SAT 800
SAT 800's picture

You can be in the front lines with the bayonets fixed; I'll stay back here and shout encouragement.

Thu, 12/05/2013 - 10:56 | Link to Comment put_peter
put_peter's picture

Dump dump dump... i'm waiting for a real panic to load a chunk of gold miners. I'm already drooling.

My advise is to try to take an advantage of this manipulation to tax loss selling. Probably this originates from London and they will be buying your Christmas presents this year.

Also what is on my buy list is the mining industry equipment makers. Once people realise what these bitcoin scams and money printing are good old metals will return to their glory.

Thu, 12/05/2013 - 10:51 | Link to Comment firstdivision
firstdivision's picture

Remember when the economy recovered?  It was when the S&P broke 1800, right?

Thu, 12/05/2013 - 10:55 | Link to Comment PaperBear
PaperBear's picture

The 10Y T getting dangerously close to 3%, again.

Thu, 12/05/2013 - 11:12 | Link to Comment Al Huxley
Al Huxley's picture

Yeah, but I think everybody's so enthralled with the equity markets that they've forgotten about bonds, except probably those leveraged long bond portfolio managers, they might be a little edgy right now.

Thu, 12/05/2013 - 11:22 | Link to Comment SAT 800
SAT 800's picture

March 10Y note contract is down 50pips with 652,000 volume; which is substantial; don't look too brilliant. also a hefty negative basis from Dec. to Mar.

Thu, 12/05/2013 - 10:56 | Link to Comment SAT 800
SAT 800's picture

The first time I don't short the fucking thing and it dumps; perfect. Thank God for the Futures Market, I'd go insane if I had to trade the Stock Market.

Thu, 12/05/2013 - 10:59 | Link to Comment Tabarnaque
Tabarnaque's picture

Interest rate on the 10 years is jumping and the US Dollar (DXY index) is falling. Sounds to me like a big crack in the ice is  just happening. The goons at the Fed and at the White House better be careful what they say tomorrow with the job report...

Thu, 12/05/2013 - 11:05 | Link to Comment put_peter
put_peter's picture

Hyperinflation!!! Bond holders will loose everything. Nice job...

Thu, 12/05/2013 - 11:00 | Link to Comment SAT 800
SAT 800's picture

Nice S&P500 Chart; looks like it went 'No Bid' there for awhile. Fell down the stairs.

Thu, 12/05/2013 - 11:10 | Link to Comment Headbanger
Headbanger's picture

Here ya go, this chart from Daneric's blog shows what's going on with the S&P:

http://4.bp.blogspot.com/--I7_Tjeu6NM/Up-o10YmEAI/AAAAAAAAXTU/F3RGAwIh1y...

So the drop this morning is either the "B" wave of the wave 2 upward correction of the drop so far.

Or.. This drop is the start of a nasty third wave down.

In either case GTFONASTFB!!!

Thu, 12/05/2013 - 11:14 | Link to Comment Al Huxley
Al Huxley's picture

I don't think it's ever going to be the start of a nasty third wave down.  This is increasely  becoming the 'no consequences, no bubbles, permanent controlled rise' market.  In any case, who wants to be the one who sells and fucks up the Santa Claus rally?

Thu, 12/05/2013 - 11:21 | Link to Comment Headbanger
Headbanger's picture

What's with all the cheerleading here lately?  And why must there always  be a Santa Clause rally??

There sure wasn't one in 2008!

Thu, 12/05/2013 - 11:35 | Link to Comment Al Huxley
Al Huxley's picture

I don't believe there's anything backing this market, but its like a fucking train running out of control - it has its own momentum and standing on the tracks because you're sure you know where it will crash is a good way to get killed.

Thu, 12/05/2013 - 11:28 | Link to Comment SAT 800
SAT 800's picture

There's always a wave down. I want to be the one who fuckup the Santa Claus Rally; but I can't. But I want to. While we're at it let's fuck Santa Claus too.

Thu, 12/05/2013 - 11:26 | Link to Comment SAT 800
SAT 800's picture

Looks like a mood swing chart for a Schizophrenic; the hospitalized kind. Now it's back up again; the only thing the muppets are really sure of is that Gold is definitely completely useless; meanwhile Silver is selling for the same price it was yesterday. Well at least it's not boring.

Thu, 12/05/2013 - 11:12 | Link to Comment Iam Yue2
Iam Yue2's picture

Draghi talks the € up; just what the export led recovery needed.

Thu, 12/05/2013 - 11:19 | Link to Comment MFLTucson
MFLTucson's picture

The European clown molded by the unethical Goldman Scahs and we are to believe this trash?  

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