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2nd Hindenburg Omen In 3 Days Stumbles Stocks; Bonds And Bullion Bid

Tyler Durden's picture




 

Between new lows, new highs, advancers, decliners, lagging volumes, and stalling momentum, technicals have signaled another Hindenburg Omen (following Friday's) as the cluster builds once again. While it may not have lived up to its ominous name in the last year of liquidity, it highlights market anxiety and internals are growing more concerned... still believe the taper is priced in? Strength in Treasuries and gold (and silver) suggest safe-havens are being sought after. VIX is on the rise once again (and its most inverted in over 2 months); and even JPY carry traders (which dragged stock lower tick fgor tick with EURJPY once again) reduced exposure.

 

2nd Hindenburg in 3 days...

 

as carry traders sent stocks lower.... fun-durr-mentals...

 

Gold and silver surged...

 

As did bonds amid a seeming safety bid...

 

And VIX is its most inverted in 2 months...

 

and some context over the last 3 days...

 

Charts: Bloomberg

 

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Tue, 12/10/2013 - 17:06 | 4233722 SheepDog-One
SheepDog-One's picture

The answer seems obvious....just inject more hot FED cashola.

Tue, 12/10/2013 - 18:21 | 4233981 lakecity55
lakecity55's picture

Look on the bright side. The Premier's plane may malfunction and crash-land in a cold place like, say Iceland, on the way back from the party Mandela died to give him, and he gets chopped in half by a wing.

Such a shame, and Mandela invited all those people to his funeral just so they could meet our Premier!

Gosh, what a terrible tragedy.....

Tue, 12/10/2013 - 17:13 | 4233752 slotmouth
slotmouth's picture

When life gives you hindenburg, make hindenburger.

Tue, 12/10/2013 - 19:51 | 4234210 Solon the Destroyer
Solon the Destroyer's picture

According to the Stuka Dive bomber, Ben Hunt, of Epsilon Theory:

 

So if you’re reading Epsilon Theory for specific trade ideas, here’s one:

 short VXX every time it pops its head up on a big down day as investors rush to buy "volatility protection".  

Hedge it out with some sort of long straddle on the S&P 500 or short positions on underlying stocks if you want to be cautious, but you really don’t need to. So long as most investors mistake instability for volatility (and unless Epsilon Theory gets a LOT more distribution I think it’s safe to say that will persist for a looooong time) this is an archetypal behavioral trade. I’ll let you know if the informational structure shifts so that volatility really does raise its ugly head.

Tue, 12/10/2013 - 17:28 | 4233807 Lost My Shorts
Lost My Shorts's picture

Ya but -- why is the dollar down on taper talk?  And Gold up?  (Gold up probably because so many shorted anticipating taper that the trade became too crowded.)  And Bonds up?  Seems like the markets are tightly wound up preparing for taper, and anything could happen.

Tue, 12/10/2013 - 17:05 | 4233724 Obchelli
Obchelli's picture

Bullish,

 

We had 5 Hindenburg omens 4 Months ago and market is much higher now... That makes total of 7 hindeburg omens in last 5 months...

With Fed printing Hinderburg Omen lost it's credibility...

 

 

to FED 

Tue, 12/10/2013 - 17:09 | 4233738 Al Huxley
Al Huxley's picture

I don't think the Hindenburg Omen's a very useful indicator...

Tue, 12/10/2013 - 17:06 | 4233726 Al Huxley
Al Huxley's picture

I can't believe these fucking douchebag 'masters of the universe' let all the major indices close red today.  What the fuck is wrong with them?!?  Don't they understand how close it is to Christmas? Dammit, people are counting on the Santa Claus rally to pay the bills!  Fuck, swap these fucking losers out and get somebody in there who knows how to run a 'market'.

Tue, 12/10/2013 - 18:15 | 4233966 lakecity55
lakecity55's picture

Oh, My God, I just figured it out!

Bath House Barry is going to steal Christmas!!!

Tue, 12/10/2013 - 17:06 | 4233727 HUGE_Gamma
HUGE_Gamma's picture

what about a BONUS CHART!?!?

Tue, 12/10/2013 - 17:06 | 4233728 BadDog
BadDog's picture

Is this anything like the hemlich maneuver?

Tue, 12/10/2013 - 17:56 | 4233776 frankTHE COIN
frankTHE COIN's picture

..... You're gett'n close.

Tue, 12/10/2013 - 18:43 | 4234027 new game
new game's picture

bend the fuck over and i'll get you that bone-ass chart.

Tue, 12/10/2013 - 17:09 | 4233734 SheepleLOVEched...
SheepleLOVEcheddarbaybiscuits's picture

ZH still publishing Hindeburg Omen? LOL This has provided great opportunity to buy the dips.

Tue, 12/10/2013 - 17:16 | 4233765 MichiganMilitiaMan
MichiganMilitiaMan's picture

BTFATH on the dips?  No thanks.

I am too concerned about buying a dropping knive and then having nearly nothing left.  Although buying the dips in Au and Ag feels a lot less awkward to me.

Tue, 12/10/2013 - 18:18 | 4233980 SheepleLOVEched...
SheepleLOVEcheddarbaybiscuits's picture

umm no, buying the dip after a hindenburg omen

Tue, 12/10/2013 - 17:23 | 4233784 frankTHE COIN
frankTHE COIN's picture

I bought it earlier today for a day trade to scalp around my main position, which is short and I got roasted.

Tue, 12/10/2013 - 17:09 | 4233736 Al Huxley
Al Huxley's picture

At least TWTRs up.  If it can just run 5%/day until Christmas that should make up for the gigantic fuckup that TPTB are allowing in the broader market.

Tue, 12/10/2013 - 17:12 | 4233746 undercover brother
undercover brother's picture

Over the past 5 years the market has seen about 15 hindenberg omens, each failing to deliver, so its level of usefulness as a predictive mechasim has been greatly minimized.    Eventually one will work again, but as long as QE continues...whatever.

Tue, 12/10/2013 - 18:15 | 4233964 lakecity55
lakecity55's picture

Yes, but The Premier needs to have an emergency to declare Martial Law before he is kicked out for O'LeechCare (TM).

"Hey, my leg is broken. I need help."

"Sorry, sir, this facility is reserved for High Party Officials and their guests. There is a pharmacy down the street. Get moving, prole!"

Tue, 12/10/2013 - 17:15 | 4233760 TheInfoman
TheInfoman's picture

The Fed's Hindenberg Put solves all.

Tue, 12/10/2013 - 17:17 | 4233770 frankTHE COIN
frankTHE COIN's picture

The Hindinburg AirRaid Siren just went off. Be alert.

Tue, 12/10/2013 - 17:23 | 4233781 Big Ben
Big Ben's picture

There seems to be a pattern where gold goes up a week or so before the Fed meeting, and then gets smashed shortly after no taper is announced. Someone thinks taper might be good for gold?

Tue, 12/10/2013 - 17:26 | 4233800 LawsofPhysics
LawsofPhysics's picture

don't make it more complicated than it is.  Ask yourself one simple question; "What will the price of anything be when all fiat is no longer accepted by anyone?"

 

Then, hedge accordingly.

Tue, 12/10/2013 - 17:38 | 4233805 bdub2
bdub2's picture

For years, a name synonomous with an inflated balloon -  taking the lives of so many, and now, decades later, finally vindicated, The proud Hindenburg name associated with the greatest inflated bubble of all time, about to engulf the fortunes of so many. Knighted and linked together forever with its own contemporary abbreviation:  BTFD.

Ahhh, a wonderful family story. All's well that ends well. 

And in the spirit of the holiday season, I'd like to wish everyone a Fuck you BernankeYellen! and a Rot in Hell Obarry to all!

Tue, 12/10/2013 - 17:32 | 4233814 RSDallas
RSDallas's picture

Hindenburg, death cross's, this is worthless bankster speak.  

Tue, 12/10/2013 - 17:34 | 4233820 Q-Q-Q
Q-Q-Q's picture

Ahhhhhh, remember the good old days of price discovery. Now it's just Fed BS speak with the Emperor giving the thumbs up or thumbs down.....whatever happened to the Roman Empire, it was all going so well!

 

NOT for distribution in US, €U or UK hTTp://therebel.org/index.php?option=com_content&view=article&id=721143:icelanders-overthrow-government-and-rewrite-constitution-after-banking-fraud-no-word-from-us-media&catid=135:news&Itemid=1229

The 0.01% won't be happy when they get back from Soweto http://www.youtube.com/watch?v=_jqzUX8fkMk

Tue, 12/10/2013 - 18:01 | 4233926 Bryan
Bryan's picture

Yeah, and you wouldn't want to come home from Soweto to a dead cat bounce, would you?

 

http://www.youtube.com/watch?v=cNSedcIKXWI

Tue, 12/10/2013 - 18:10 | 4233956 lakecity55
lakecity55's picture

Man, the no-class faggot was laughing and taking pictures of himself- at the funeral!

This guy lives in a bubble like Adolf Hitler did in the Last Days: no awareness of the outside world other than in his imagination.

Tue, 12/10/2013 - 18:09 | 4233944 lakecity55
lakecity55's picture

Thankfully, Bath House Barry has a Soviet Media Organization in operation.

No word from the new Official State Media will ever escape about this turn of events in Iceland. I imagine Backdoor is busy having Iceland erased from all US maps.

"If you like your Soviet, you can keep your Soviet-or else."

Tue, 12/10/2013 - 18:20 | 4233983 yofish
yofish's picture

Oh, another Hindenburg. On a long enough timeline, Durden will get the timing right.....

Tue, 12/10/2013 - 18:39 | 4234020 chump666
chump666's picture

Possibly, USD is getting smashed which could indicate Asian liquidation, imo the FED knows a USD crisis is imminent (free fall to 2011 lows) so they are trying to jawbone on the 80.  VIX hulk smash is the leveraged greed engine attempting a Santa rally.

This market could blow any-day

 

Tue, 12/10/2013 - 18:46 | 4234032 yogibear
yogibear's picture

The Fed is eating Hindenbugers all the time now.

Their also eating bear burgers as well.

Expect a Christmas rally to lift the middle finger to any bears left.

Tue, 12/10/2013 - 18:56 | 4234074 new game
new game's picture

well, anyways the stack got 6 higher today. nice break above 1250 with solid bid and close.

should bring in the easy riders...

Tue, 12/10/2013 - 19:50 | 4234203 BringOnTheAsteroid
BringOnTheAsteroid's picture

The Hindenburg Omen is actually a positive indicator in these markets because it implicitely infers the fed will be there to backstop the market. Zero Hedge has to start looking at the world while standing on their heads and looking through a mirror. Everything is upside side, left to right and back to front . . . . . OK, OK, your reflection in a mirror isn't back to front otherwise you'd be looking at the back of your head . . . . . but you know what I mean.

Wed, 12/11/2013 - 13:24 | 4236533 el Gallinazo
el Gallinazo's picture

Naomi Prins has a very interesting 20 minute interview with Greg Hunter this week.  Basic points:

If one studies the founding of the Fed in 1913, there was never discussions of one of its functions to effect the economy and unemployment.  Its purpose was to protect its member banks and control the dollar exchange rate.

The current discussion of the tapir is a load of MSM BS (and also, unfortunately, the alternative media) to distract the unwashed.  QEinf has only one real purpose - to keep the big six TBTF banks on life support by a continually transferring (100 cents on the dollar) the toxic MBS garbage they created to the public (under the Matrix mindfuck that the Fed is somehow a governmental institution).  Bond buying on the part of the Fed is to keep the interest rates low, also to keep insolvent TBTF banks from going belly up.  If the Fed stopped their support, the TBTF would be almost instantly bankrupt.  The stock asset bubble is just a collateral artifact of keeping the banks on life support.  One amazing thing about this is that despite the trillions taken off their books, the TBTF are still insolvent and give little sign of leaving that condition in the forseeable future.  As the prime directive of the Fed is to keep the big six banks alive, the tapir is, like the unicorn, a mythical beast.  She also suggests that one look at the rise in stock prices of the TBTF versus the S&P500 since QEinf started.

She feels that the Fed can keep this game going for quite some time and regards a crash in 2014 as possible but improbable.

https://www.youtube.com/watch?v=njDQiPoVAng

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