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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Leonardo Fibonacci2's picture

Call me when the DJIA is down 800 pts

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.  

Atlas_shrugging's picture

Bloomberg will surely report on PMs surge today.

kralizec's picture

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

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

ebworthen's picture

I see monkey business.

Bet the trend just reverses tomorrow.

Max Damage's picture

Monkey business? You been on the Donkey meat again?

Sudden Debt's picture

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

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'...

fonestar's picture

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

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.

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.

TaperProof's picture

 You made 10 fake accounts and you up vote yourself?

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.

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.

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.

ebworthen's picture

"...engines of growth"? 

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

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. 

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.

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...

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.

fijisailor's picture

Poor guy.  So many down votes for obvious humor.

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.

zaphod42's picture

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



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.

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'...

Croesus's picture

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

Shad_ow's picture

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


Cognitive Dissonance's picture

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

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)

Dr. Engali's picture

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

jekyll island's picture

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

Keyser's picture

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

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.

orangegeek's picture

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


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)



NoWayJose's picture

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

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.


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.

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. 


ifishivote's picture

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

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...

Dr. Engali's picture

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