Bonds & Bullion Battered As Russell Retraces Half FOMC Ramp

Tyler Durden's picture


While stocks were the headline-makers yesterday, they mostly range-traded today taking a breather to think (even with a double-POMO) as the rest of the world's asset classes did their thing. The Dow closed at a new recxord highs but the Russell 2000, however, lost over half its gains from yesterday! Markets everywhere saw major moves... in no particular order, JPY carry trades disconnected from stocks (EURJPY fading) - until the last few minutes of failed ramp-levitation; 5Y Treasuries underperformed back to 3-month highs (up 11bps - the most in over 5 months) and the Treasury complex saw its biggest bear-flattening (5s30s) in over 2 years; WTI crude rose notably on the day , back above $99; and gold (and silver) was monkey-hammered to 40-month lows - with the biggest 2-day drop in 6 months. Following yesterday's smackdown, VIX initially followed through but as the day wore on, demand for protection grew and VIX closed higher... oh, and it's not all glee in stocks as internals today triggered another Hindenburg Omen.


Stocks were very mixed... (only the Dow green - new record high)


But for gold (and silver) - it was a very ugly day... (gold closed at its 'average' price of the last 7 years and lowest since July 2010)


Stocks got no support from JPY crosses once Europe closed...but were in great demand as algos tried to lift stocks to their highs into the close...


And the afternoon saw VIX decouple as protection was bid...


As it seems the high-beta honeys were not in vogue today as Russell 2000 gave back more than half yesterday's gains...


Treasuries were clubbed...


As the term structure flattened dramatically...


The 5th closing Hindenburg Omen in the last 2 weeks...


Charts: Bloomberg

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Thu, 12/19/2013 - 17:07 | 4261748 BKbroiler
BKbroiler's picture

damn.  gold's almost a buy

Thu, 12/19/2013 - 17:09 | 4261758 FieldingMellish
FieldingMellish's picture

Wait until it reenters double digits, then consider it.

Thu, 12/19/2013 - 17:23 | 4261803 Dr. Engali
Dr. Engali's picture

Gold going to double digits? WTF are you smoking?

Thu, 12/19/2013 - 17:35 | 4261847 FieldingMellish
FieldingMellish's picture

How is that more far-fetched then the calls of $50,000 gold? Its actually far more reasonable.

Thu, 12/19/2013 - 17:47 | 4261898 Bay of Pigs
Bay of Pigs's picture

I wouldn't use the word "reasonable" in any of your posts.

And "far moar resonable" is just crazy talk troll.

Thu, 12/19/2013 - 17:51 | 4261910 ParkAveFlasher
ParkAveFlasher's picture

1) Price controls work.

2) Gold rusts, floats, and gets moldy.

3) Fiat currencies last forever.

4) Governments limit themselves.


Thu, 12/19/2013 - 18:04 | 4261961 kk1532003
kk1532003's picture

5. I love you


6. The check is in the mail


7. I promise I won't come in your mouth

Thu, 12/19/2013 - 17:55 | 4261917 He_Who Carried ...
He_Who Carried The Sun's picture

>>Wait until it reenters double digits, then consider it.<<


Nice joke! I'd say 980$ to 1040$ is the

appropriate range to get big and physical again... ;-0

Thu, 12/19/2013 - 17:55 | 4261931 FieldingMellish
FieldingMellish's picture

...and when it hits $700 again? Load up the truck at $500? Its got to be a winner at $250, right?

Thu, 12/19/2013 - 17:59 | 4261941 fonzannoon
fonzannoon's picture

The reason anyone with a brain owns gold is for the day it is not measured in dollars. Anyone else is just speculating.

Thu, 12/19/2013 - 18:04 | 4261955 He_Who Carried ...
He_Who Carried The Sun's picture

>>...and when it hits $700 again? Load up the truck at $500? Its got to be a winner at $250, right?<<


Troll away, silly git!

Thu, 12/19/2013 - 20:46 | 4262370 PLira
PLira's picture

new FieldingMellish

It is quite the Gold troll. On every Gold related thread for the last few days.

Best case in this poster is to ignore him. He likely gets paid for each post, so deprive it of the money, imho.

Thu, 12/19/2013 - 17:10 | 4261755 FieldingMellish
FieldingMellish's picture

New low in PMs before month end, maybe tonight. Sub $1000 by end 2014.

Thu, 12/19/2013 - 17:18 | 4261775 FieldingMellish
FieldingMellish's picture

Only 1% to go now... any minute...


Once $1180 is taken out, the floor will be a good $50-$60 below that. I doubt $1200 will be seen again this year and not likely for a few after that.

Thu, 12/19/2013 - 17:20 | 4261785 mayhem_korner
mayhem_korner's picture



If you can deliver it in < 48 hours, I'll buy all of your physical gold today for $1,200/oz. 

What say you, troll?

Thu, 12/19/2013 - 17:33 | 4261848 fonzannoon
fonzannoon's picture

People will break one by one on here until there are very few left. This guy apparently is mentally broken.

Thu, 12/19/2013 - 17:47 | 4261897 BKbroiler
BKbroiler's picture

Well I'd rather be called broken than be broke.  Damn glad I got out in January.  I love me some gold, but rule 1 is don't fall in love with your investment.  When gold plus premium is 1K and silver plus premium is $20, back in I go.

Thu, 12/19/2013 - 17:46 | 4261899 FieldingMellish
FieldingMellish's picture

and the constant hatred for anyone not pro-gold is proof that more pain is still to come. Far too many in love with what they believe is "insurance". Its just a yellow metal.

Thu, 12/19/2013 - 17:52 | 4261922 fonzannoon
fonzannoon's picture

do my posts prove that I don't hate anybody?

Thu, 12/19/2013 - 18:02 | 4261960 BringOnTheAsteroid
BringOnTheAsteroid's picture

You've got to think long term son. Trying to bottom pick the gold price is dumb. Your statement reflects a very shallow understanding of history, an arrogance that only, generally, a Gen Y can muster. Thousands of years of civilisation have gone before you where integrity was a far more common attribute of man and you think the dog and pony show of modern finance will last. It's going to be a tough lesson for you when thousands of years of history removes it's glove and slaps modern investing banking across the face.

Thu, 12/19/2013 - 17:50 | 4261903 fonzannoon
fonzannoon's picture

whatever works for you. I did not buy it to sell it. Ever. What I have will be passed down. I disagree with most on here that this has to end anytime soon. But it will end, probably in a very bad way. When it does gold may be hard to come by. Or maybe not. Who gives shit right? We are all just passing through.

Thu, 12/19/2013 - 17:59 | 4261939 Billy Sol Estes
Billy Sol Estes's picture

Bury that shit and never sell it or tell the IRS you ever possessed it.

Thu, 12/19/2013 - 18:10 | 4261981 BKbroiler
BKbroiler's picture

Who gives shit right? We are all just passing through.

farts in the wind.  I don't have the luxury of losing that much money, had to sell and sell big when I thought it was going down.  If all the other bases were covered, I'd probably sit on it also.  Short attention span, I guess.

Thu, 12/19/2013 - 17:35 | 4261853 FieldingMellish
FieldingMellish's picture

Why would I own any gold now that the price is in freefall?

Thu, 12/19/2013 - 17:42 | 4261882 fonzannoon
fonzannoon's picture

Just out of curiousity, because sometimes I forget who I am talking to on here, are you the 22 year old kid who trades a whole bunch? The one who was shorting the S&P the last 100 points up? 

If not, then my apologies to you. I don't agree with what you are saying, but I am thinking of someone else.

Thu, 12/19/2013 - 17:46 | 4261896 FieldingMellish
FieldingMellish's picture

You are thinking of someone else. I was investing in PMs and miners for 12 years now. Not anymore.

Thu, 12/19/2013 - 17:48 | 4261904 Bay of Pigs
Bay of Pigs's picture

12 years and you packed it in now?

LOL, you really are a stooge then.

Thu, 12/19/2013 - 17:51 | 4261912 fonzannoon
fonzannoon's picture

The only thing I would be doing with the miners right now is shorting them. The other thing I would be doing is using gains in stocks to buy real assets. But that is just me. 

Thu, 12/19/2013 - 20:24 | 4262291 Al Huxley
Al Huxley's picture

I'm heavily short miners now, as of early this week.  Whole portfolio's solidly green, but what's far better is I suddenly don't give a fuck about conspiracies to sell gold, or pending LBMA or Comex failures

Thu, 12/19/2013 - 20:29 | 4262322 fonzannoon
fonzannoon's picture

Good stuff. Most people on here would attempt to short them but then have this moment

and then go back to going long them and losing their ass because it's the moral thing to do.

Thu, 12/19/2013 - 21:06 | 4262422 Al Huxley
Al Huxley's picture


Thu, 12/19/2013 - 17:58 | 4261945 kk1532003
kk1532003's picture

no, if you are selling then you may have been trading in PM's and miners for 12 years, but you damn sure weren't investing.  That would be like a riflr company stockpiling ammo prior to engagment, then surrendering it all after the first shot was fired.

Thu, 12/19/2013 - 22:26 | 4262596 SilverRhino
SilverRhino's picture

PM's are not an investment play for the short term at this point.   Any PM's I have are for retirement in oh .... 25-30 years or so. 


Thu, 12/19/2013 - 17:17 | 4261777 Charles Nelson ...
Charles Nelson Reilly's picture

yeah... cause I'm sure the appetite for physical gold will magically go away at sub $1000 gold.  Would love to see how the Comex & LBMA are doing when gold gets to $975 an ounce.

Even the manipulators aren't that arrogant and stupid.

Thu, 12/19/2013 - 17:17 | 4261782 BKbroiler
BKbroiler's picture

miners getting rocked.

Thu, 12/19/2013 - 17:21 | 4261789 Charles Nelson ...
Charles Nelson Reilly's picture

this is where you either got the balls to stick to your convictions or sellout because you believe what cocksuckers like Barry Ritholz & Ambrose Pritchard are telling us.

Thu, 12/19/2013 - 17:31 | 4261827 Al Huxley
Al Huxley's picture

I don't believe anything the mainstream establishment says about gold, I'm 100% convinced in about 2 years or less inventories will be gone, the reset will happen and things will go nuts.  So what I say doesn't apply to physical metal, which is a safe way to save long term, and have some kind of tangible asset when the big dollar reset finally happens - a lot fucking better for the average guy than 'balloon dog orange'.


But these mainstream guys are talking about paper gold, so when they say 'gold will go to 1000 by the end of 2014', taking it as 'paper gold' then yeah, they could be right, which would be great because those fucking balloon dogs aren't getting any cheaper, but at least gold is, as long as you get the real stuff, and take it home and hide it for later.

Thu, 12/19/2013 - 17:39 | 4261866 ParkAveFlasher
ParkAveFlasher's picture

+1000 for "balloon dogs aren't getting any cheaper", and any additional clown references this spawns.

Thu, 12/19/2013 - 17:35 | 4261849 nobodyimportant
nobodyimportant's picture

When Jim Sinclair says to dump gold I might listen.  All else is just noise.

Thu, 12/19/2013 - 17:39 | 4261868 FieldingMellish
FieldingMellish's picture

Jim Sinclair... CEO of a mining company and chairman of a metals exchange... yeah... no conflict of interest there. Beware the gurus you pick, they can lead you to ruin.

Thu, 12/19/2013 - 17:42 | 4261877 Charles Nelson ...
Charles Nelson Reilly's picture

pfffttt... guys like Sinclair could have retired long ago if they wanted.  There is little incentive for him to pick a war with the elites if he wasn't looking out for his fellow man.  

Thu, 12/19/2013 - 17:43 | 4261884 nobodyimportant
nobodyimportant's picture

Well I sure as hell am not picking you for a guru!  But if you are as smart as you think you are then your portfolio must make Jamie Dimon look like a pauper.

Thu, 12/19/2013 - 17:18 | 4261787 FieldingMellish
FieldingMellish's picture

There is no demand now, that is why the price is falling. All these "you can't get phyzz" stories have been circulating for years. Looking online, I can get coins for $50 over spot with a few days delivery.

Thu, 12/19/2013 - 17:29 | 4261817 Charles Nelson ...
Charles Nelson Reilly's picture

yeah, in the US there is little demand because the retards in this country wouldn't know the value of a 1 oz coin if it smacked them in the head.  Go over to CHina an tell us how their appetite is low.

Thu, 12/19/2013 - 17:32 | 4261841 FieldingMellish
FieldingMellish's picture

You believe any story out of China?

Thu, 12/19/2013 - 17:35 | 4261858 Charles Nelson ...
Charles Nelson Reilly's picture

No... none!  I believe those pictures of people lined up outside coin shops/jewerly stores have been faked by the chinese gov't so they can covertly keep buying US Treasuries?!?

Thu, 12/19/2013 - 17:58 | 4261938 ParkAveFlasher
ParkAveFlasher's picture

I believe the plurality of humankind stores surplus labor value in gold, in fact.  A bunch of inbred clowns however differ with this view, and concoct schemes of ever-expanding complexity to deny this.

Thu, 12/19/2013 - 17:22 | 4261793 Al Huxley
Al Huxley's picture

They still have 812 tons in GLD to sell.  When THAT's gone, whatever the price is at that time will be the bottom, is what I'm betting. In the meantime they're living the good life - short GLD, force the price down, extract the gold from customer redemptions and sell it to Asia at a mark-up - profit on the short leg and the premium, and keep the governments happy as it provides cover for the ponzi...  And then short the dumbass miners for good measure, since they're stupid enough to compete with a paper version of the product they mine.

Thu, 12/19/2013 - 17:35 | 4261860 FieldingMellish
FieldingMellish's picture

and to think for years all the bugs have been saying that GLD has no gold in it... well there seems to be enough to sell.

Thu, 12/19/2013 - 18:01 | 4261947 fonzannoon
fonzannoon's picture

Now that is a point I would agree with. I would have thought if there was an actual run on phyz this would have been over in 2 minutes.

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