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Gold, Silver, And JPY Surge Sends Stocks Reeling

Tyler Durden's picture




 

The late-day exuberance from New Year's Eve has been dismissed as JPY strength has dragged stocks to one-week lows this morning (catching down to VIX's warnings from last week). Gold ($1225) and Silver ($20) are notably higher this morning as WTI crude is significantly lower (back under $97). Treasuries are modestly bid from earlier levels with 10Y holding 3.00%.

 

USDJPY's collapse has sent stocks stumbling...

 

As the S&P catches down to VIX's warning from last week...

 

with bullion surging and crude dumping...

 

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Thu, 01/02/2014 - 11:00 | 4293055 Leonardo Fibonacci2
Leonardo Fibonacci2's picture

Call me when the DJIA is down 800 pts

Thu, 01/02/2014 - 11:04 | 4293063 Stuart
Stuart's picture

All these markets are as stable and predictable as the political stability of the Congo.  Politics rules and these markets are mere ticker tapes of manipulation.  

Thu, 01/02/2014 - 11:50 | 4293204 Atlas_shrugging
Atlas_shrugging's picture

Bloomberg will surely report on PMs surge today.

Thu, 01/02/2014 - 14:15 | 4293753 kralizec
kralizec's picture

PPT not answering the phone?  Still hung over from all that New Years booze, blow and whatever?

Thu, 01/02/2014 - 13:17 | 4293516 DebtSlaveZombie
DebtSlaveZombie's picture

People have been waiting for January 2nd, 2014 to take profits on HUGE gains last year. It's no surprise to me that the market is down. Actually, if it were down 2% on the year by next Friday it would make complete sense. So really, these first 4 or 5 trading sessions of 2014 can be ignored. Rich people taking a little off to buy some stuff. As they should... some took in 35-40% in returns last year. Biggest year in 17 years. So hell, lets go buy some shit! S&P 2000 this year by July. Nikkei 20,000. DOW 19,000.

Gold and Silver up?  lol.  Shorts are covering to take profits too.  This was about as predictable as it gets.  So the fact equities are down and metals are up means profits being taken in equity longs and in PM shorts.  We'll be back to normal in mid-January.  Great buying opp here.  Let the market flush out about 2-3% of the froth and get in.  The government has to be loving this.  HUGE tax receipts rolling in this year.  That combined with Obama Care sign ups increasing is a good sign for the market.  You guys can give me negative votes all day long but its true.  We will watch this market SURGE over the next 24 months.  US equities will explode.  Japanese equities will explode.  European markets will gain more confidence.  PM's will bleed to death....slowly.  1100 gold by year end or lower.  850 gold in 2015.  Slow and agonizing.  Bonds will bleed.  US equities are the new safe haven.  Blue chips will buy stock back like never before.  2017 will be a different story....but until Barak Obama is gone... this is the new normal.  Welcome to 20% returns and Fed intervention/low interest rates.  BUY BUY BUY

Thu, 01/02/2014 - 10:57 | 4293056 ebworthen
ebworthen's picture

I see monkey business.

Bet the trend just reverses tomorrow.

Thu, 01/02/2014 - 11:01 | 4293069 Max Damage
Max Damage's picture

Monkey business? You been on the Donkey meat again?

Thu, 01/02/2014 - 11:14 | 4293115 Sudden Debt
Sudden Debt's picture

it explains all those missing people reports they've been showing these last decades...

Thu, 01/02/2014 - 11:05 | 4293079 NoWayJose
NoWayJose's picture

Any time you see gold slammed down one day, then suddenly reversed - followed by a big spurt the next trading day - you can be sure that the manipulators and algorithms spotted something that let them crush some gold traders.  Fortunately, stackers get to take advantage of the dips to increase their stack, and don't have to worry about these little $50 up and down games.  The payoff will come when 'rock' crushes 'paper'...

Thu, 01/02/2014 - 11:22 | 4293129 fonestar
fonestar's picture

Yes, I am not happy yet.  My price target for silver and BTC is infinity.

Thu, 01/02/2014 - 11:53 | 4293224 quasimodo
quasimodo's picture

As much as it pains me, I just had to up arrow you for the comment on your silver target. 

That said, not sure I want to see infinity, lest many other things would be really, really ugly.

Thu, 01/02/2014 - 11:58 | 4293241 fonestar
fonestar's picture

Well stop and think for a moment here.  Anything less than infinity means that they are still in control.  I don't want to see a higher dollar price for items I own.  I don't want to see the "good guys" get control of the dollar.  I want to see the dollar killed off for good.

Thu, 01/02/2014 - 13:34 | 4293592 TaperProof
TaperProof's picture

 You made 10 fake accounts and you up vote yourself?

Thu, 01/02/2014 - 13:02 | 4293460 fijisailor
fijisailor's picture

The algos just want to make money but the manipulators?  All they care about is the paper price and they have no interest in world physical demand?  Just askin.

Thu, 01/02/2014 - 12:05 | 4293253 Lewshine
Lewshine's picture

I have seen this movie before - Like the rest of you. You can tell it's Ben allowing a little selling of equities, so to add a little realism to the next 10 days of parabol. As well, gold is given some hope today - But never get your hopes to high...Tomorrow, PM's will be down twice the upside of today...Because the Fed's manufactured realism has its back to business boundaries.

Thu, 01/02/2014 - 11:03 | 4293064 Musashi Miyamoto
Musashi Miyamoto's picture

Stocks going down plus raising interest rates means Moar QE. This is clearly a bullish signal.

Don't get priced out. I would go long on tech stocks. If it was up to me I would place Twitter and Facebook in the DOW as they are the real engines of growth here.

Thu, 01/02/2014 - 11:10 | 4293100 ebworthen
ebworthen's picture

"...engines of growth"? 

I have a perpetual motion machine to sell you; special price - never needs winding.

Thu, 01/02/2014 - 11:42 | 4293195 Musashi Miyamoto
Musashi Miyamoto's picture

Describe it to me.

Thu, 01/02/2014 - 11:49 | 4293200 Keyser
Keyser's picture

Never mind. It's a Cold Fusion device, so therefore you will never get a patent since the US Patent Office has declared Cold Fusion as a hoax. 

Thu, 01/02/2014 - 11:59 | 4293246 Musashi Miyamoto
Musashi Miyamoto's picture

While significant progress has been made in the sophistication of calorimeters since the review of this subject in 1989, the conclusions reached by the reviewers today are similar to those found in the 1989 review.

The current reviewers identified a number of basic science research areas that could be helpful in resolving some of the controversies in the field, two of which were: 1) material science aspects of deuterated metals using modern characterization techniques, and 2) the study of particles reportedly emitted from deuterated foils using state-of-the-art apparatus and methods. The reviewers believed that this field would benefit from the peer-review processes associated with proposal submission to agencies and paper submission to archival journals.

— Report of the Review of Low Energy Nuclear Reactions, US Department of Energy, December 2004

There is still hope.

www.scitechstory.com/2010/03/23/science-in-cold-fusion/

Thu, 01/02/2014 - 13:50 | 4293660 Diet Coke and F...
Diet Coke and Floozies's picture

I made one. Works as described.

 

http://jlnlabs.online.fr/cfr/index.htm

Thu, 01/02/2014 - 11:10 | 4293102 Odin
Odin's picture

LoL

Thu, 01/02/2014 - 11:14 | 4293109 mayhem_korner
mayhem_korner's picture

 

 

I hadn't realized the leader of the Japanese naval fleet that led the overwhelming defeat at Midway back in '42 had been reincarnated as a troll...

Thu, 01/02/2014 - 11:31 | 4293159 Musashi Miyamoto
Musashi Miyamoto's picture

You should know that I'm on to you. You may not know i know. But i think you think i think you know what i think.

Thu, 01/02/2014 - 12:10 | 4293261 piceridu
piceridu's picture

It's a bot troll.

Thu, 01/02/2014 - 12:08 | 4293267 Hongcha
Hongcha's picture

Mayhem; wrong.

Thu, 01/02/2014 - 11:28 | 4293148 fijisailor
fijisailor's picture

Poor guy.  So many down votes for obvious humor.

Thu, 01/02/2014 - 12:12 | 4293281 Zero Point
Thu, 01/02/2014 - 13:15 | 4293505 Seeking Aphids
Seeking Aphids's picture

Mushashi Miyamoto San, I hope you live up to your moniker....not a name to take lightly. Excellent reading, btw, for those interested in the Samurai period of Japanese history.

Thu, 01/02/2014 - 11:04 | 4293065 zaphod42
zaphod42's picture

Last time things had this feel to them was September 2008.  Short the markets; go long cash!

Craig

 

edit:  p.s.:  Gold would be fine right now.  One of the few times I think you could do better in metals.  Be nimble, though!  If this ends with a deflationary crash, cash is still the best holding.  Of course, if the Fed goes totally nuts, what can I say.  Looks more like a real depression at this point in time, at least to me.   Y'all do what you need to.

Thu, 01/02/2014 - 11:03 | 4293066 kensdad
kensdad's picture

What happens when the algos go full-retard sell on gold & miners, and the price goes up instead of down?

Just askin'...

Thu, 01/02/2014 - 11:21 | 4293123 Croesus
Croesus's picture

"KABOOM" Happens, and a lot of very greedy, very despicable people get "hung out to dry"?

Thu, 01/02/2014 - 12:53 | 4293431 Shad_ow
Shad_ow's picture

Please don't tease me.  That's the stuff dreams are made of.

 

Thu, 01/02/2014 - 11:02 | 4293074 Cognitive Dissonance
Cognitive Dissonance's picture

But...but...but all the stories on mainstream financial news are telling me Gold is dead for 2014.

Thu, 01/02/2014 - 11:08 | 4293090 eclectic syncretist
eclectic syncretist's picture

That is but another bullish signal. 

Thu, 01/02/2014 - 11:13 | 4293107 Ignatius
Ignatius's picture

Maybe we'll get lucky and Conan will catch the news readers...

"Well, what goes up, must come down, as gold today...." (x30)

Thu, 01/02/2014 - 11:27 | 4293144 Dr. Engali
Dr. Engali's picture

I think my gold is dead. I kept poking it, and all it does is lie there. 

Thu, 01/02/2014 - 11:33 | 4293163 jekyll island
jekyll island's picture

Hold it up to the mirror and see if it leaves a vapor cloud on the glass.  

Thu, 01/02/2014 - 11:51 | 4293209 Keyser
Keyser's picture

Sounds like my ex-wife. The only time she showed any signs of life was in divorce court. 

Thu, 01/02/2014 - 12:41 | 4293380 Meat Hammer
Meat Hammer's picture

CD, on Yahoo finance, in the span of 3 days I've seen an article slamming gold and another one predicting an all-time comeback in 2014.  On the day that the negative article about gold was published, Au was slammed down about 20 bucks, today the positive article came out and gold is "soaring".  I'm sure it's just coincidence and the financial MSM isn't owned by TPTB.

Happy New Year, bitchez.

Thu, 01/02/2014 - 11:05 | 4293078 orangegeek
orangegeek's picture

And the USD has moved sharply higher as mention two weeks ago

 

http://bullandbearmash.com/chart/dollar-daily-falls-marginally-euro-stal...

 

The USD is the linch pin to making US indexes fall - PMs are the wildcard - they fell as the USD fell (PMs and USD typically move in opposing trends)

 

 

Thu, 01/02/2014 - 11:07 | 4293085 NoWayJose
NoWayJose's picture

A higher dollar might be a sign that the Fed is losing control - their intent is to drive the dollar lower...

Thu, 01/02/2014 - 11:17 | 4293084 gwar5
gwar5's picture

I see 2014 as the year one of the exchanges will publicly fail to make a delivery of physical. 

 

Also, is it not now about time for the 5 year Chinese report on how much physical gold they possess? It should be very big amount, despite the lies, and we know they will have more than they say. 5 years ago they said they had only 1050 tons. This year alone we know they acquired twice that amount.

Point is, it may come as a huge shock to investors who have not been paying attention.

 

Thu, 01/02/2014 - 11:07 | 4293091 ebworthen
ebworthen's picture

That mushroom headed douche-bag Steve LIESman is quoting Joe LaBologna of Deutsche Bank about how great the economy is.

Good Lord, it's like Matt Damon saying how great Oprah is.

Thu, 01/02/2014 - 11:50 | 4293216 Keyser
Keyser's picture

All of the idiots on CNBC are parroting the same story. The economy is improving, unemployment is down, S&P at record levels, etc... It makes me want to puke the way they obfuscate the truth over and over and over on a daily basis. 

 

Thu, 01/02/2014 - 11:09 | 4293093 ifishivote
ifishivote's picture

It wont be long until the Fed steps in and starts buying S&P contracts.

Thu, 01/02/2014 - 11:15 | 4293111 philosophers bone
philosophers bone's picture

Today, you mean.

Thu, 01/02/2014 - 11:10 | 4293101 BullyBearish
BullyBearish's picture

How it's been working: market allowed to go down just enough to load up enough shorts for the coming short squeeze higher...

Thu, 01/02/2014 - 11:12 | 4293106 Dr. Engali
Dr. Engali's picture

Until the market vaporizes in overnight trading we are still in BTFD mode.

Thu, 01/02/2014 - 11:16 | 4293118 mayhem_korner
mayhem_korner's picture

 

 

<deleteed>

Thu, 01/02/2014 - 11:15 | 4293112 Seasmoke
Seasmoke's picture

Bring Back Bernanke !!!!!!!!!

Thu, 01/02/2014 - 11:23 | 4293131 Croesus
Croesus's picture

@ Seasmoke: 

Man, you must have had a hell of a New Year's...you're still under the influence... 

Happy New Year's, good sir! 

Thu, 01/02/2014 - 11:57 | 4293228 Obama_4_Dictator
Obama_4_Dictator's picture

This is such a dog and pony show.....

Thu, 01/02/2014 - 12:00 | 4293236 RaceToTheBottom
RaceToTheBottom's picture

USA is reporting that some people may be left behind with the recovery from the great recession....  Who 'da thunk it?

Thu, 01/02/2014 - 12:08 | 4293257 Mesquite
Mesquite's picture

Relax everybody...

Everything's under control..!

Thar's all folks..

;-)

 

Thu, 01/02/2014 - 13:15 | 4293284 fuu
fuu's picture

Yeah but how big is today's reverse repo going to be? Can't be spending cash propping up equities if we are going to grab .03% interest overnight at the Fed!

http://i.imgur.com/itlXBv9.png

http://www.newyorkfed.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE

$83.725B for the day. 11:45 EST.

Thu, 01/02/2014 - 12:20 | 4293295 Hongcha
Hongcha's picture

The price of gold is to inflation what a thermostat is to ambient room temperature.

The gold market is small enough and held in few enough hands in the West that the 'price' can be manipulated any direction they like.

But nothing is forever; and a large swath of land and people known as Asia respects the metal in hand after what, 5,000 years of worldwide acceptance.  The hubris of the West is displayed in the effort to contain gold and try to change that history.

Buy bullion and hold it.  If you like, the Chinese and ME buyers will come knocking in a few years for your bullion at $3,000-5,000 an ounce.  But be careful, because by that time all PM transactions, all, will be illegal in the United States.

Thu, 01/02/2014 - 12:28 | 4293327 fijisailor
fijisailor's picture

I agree with everything you say except the thermostat and gold analogy.  Since when did gold regulate inflation?

Thu, 01/02/2014 - 12:29 | 4293343 Hongcha
Hongcha's picture

Corrected - it doesn't regulate; just records.  I should say, 'theromometer'. Thanks.

Thu, 01/02/2014 - 12:32 | 4293359 fijisailor
fijisailor's picture

Sure.  No problem.  Who's perfect?

Thu, 01/02/2014 - 12:27 | 4293332 fijisailor
fijisailor's picture

Gold was clearly hammered down at year end to give the MSM something to preach to the muppets.

Thu, 01/02/2014 - 12:33 | 4293345 squid427
squid427's picture

Since the creation of the FED there has been a recession every 5.7 years. How long has it been since the Global Financial Crisis? God I hope to see bulls getting crushed in 14.

Thu, 01/02/2014 - 12:35 | 4293356 squid427
squid427's picture

Not that I want to see people get hurt, it would just be nice to see the "markets" come back down to reality.

Thu, 01/02/2014 - 12:35 | 4293365 fijisailor
fijisailor's picture

Don't worry.  Either the market comes down or the value that it represents goes down.

Thu, 01/02/2014 - 12:39 | 4293383 HamRove
HamRove's picture

UBS is all doom and gloom for gold bugs.  So sayeth the great and wise CNBC ANALyst.
http://www.cnbc.com/id/101304875

Thu, 01/02/2014 - 12:56 | 4293432 A. Magnus
A. Magnus's picture

Bought the fuckin' dip on New Year's Eve, bitchez!

There is only ONE positive use for bankers...to lower the price of gold and silver so that Stackers can back up the truck on sale days...

Thu, 01/02/2014 - 13:41 | 4293602 TaperProof
TaperProof's picture

When gold falls, Asia LOLs, then they take out their check books and get rid of their junk paper money.  Americans take out their check books (which draw from their home bubble equity lines) to buy junk like iPhones and video games.

I understand why Jim Rogers moved to Asia

 

Thu, 01/02/2014 - 16:40 | 4294204 DebtSlaveZombie
DebtSlaveZombie's picture

Dude.  You might wanna do a little research on the bubbles in China.  My god they are flirting with a huge economic disaster over there.  China is the next US of 2008.  They are outta control.  They have MASSIVE bubbles popping up everywhere.  Asia will not be LOL'ing at all.

Thu, 01/02/2014 - 13:49 | 4293640 Conax
Conax's picture

They got the tape painted and even tossed a little Christmas glitter on there.  Since they feverishly sold sold sold metals and bought bought bought equities all last week they are taking a morning off.  2013's in the can, wrapped with a big red ribbon.

It's just Miller time for the button men, their fat fingers are pretty sore.

Thu, 01/02/2014 - 21:08 | 4295058 Quaderratic Probing
Quaderratic Probing's picture

A 1.45% daily change in gold "Sends Stocks Reeling"? Geeze, I only see normal range moves in both.

Thu, 01/02/2014 - 21:19 | 4295096 Wish Doctor
Wish Doctor's picture

Back in the Olden Days when people had losses in equities they would sell their losers before the end of the year to book the loss for tax purposes.  

Nowadays when everyone (of importance) has gains they can postpone paying taxes on them by waiting for the new year.

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