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Stocks Fade To Red As Oil Dumps And Gold Jumps

Tyler Durden's picture





 

As Europe closes, the 'recovery' in US equities has faded to red for the majors (though Trannies and all the high-beta momos are still in the green thanks to JPY just not wanting the party to stop - for now) seeimngly led by AAPL's plunge to its 50DMA. This morning's jerk higher appears as much about BTFD catch up for Trannies than anything else. Bonds sold off modestly but the USD continues to surge (led by EUR weakness after ugly loan creation data). WTI crude (and Brent) is tumbling further - back at $94.50 - but gold is surging back to yesterday's highs at around $1236. VIX is stable for now around 14% as stocks rotate back to play catch-down.

 

VIX is stable as stocks catch back down to it...

 

S&P 500 futures rallied to previous support and faded back quickly....

 

But gold keeps pushing higher as Oil tumbles...

 

It appears the high-beta BTFD-ers were in early but are fading now...

 


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Fri, 01/03/2014 - 12:52 | Link to Comment SheepDog-One
SheepDog-One's picture

So no DOW 17,000 by close today? Aw shucks that's such a travesty and whatnot...must have all those BTFD'ers all in a tizzy.

Fri, 01/03/2014 - 13:21 | Link to Comment knukles
knukles's picture

Lemme see here...
JPM is long gold for their very own little account and calling for a decline in stocks.

Hmmmmm....

Fri, 01/03/2014 - 14:38 | Link to Comment Soul Glow
Soul Glow's picture

Stocks will drop 10% - 20% over the next few months, gold will break 1300 by the end of January and keep moving higher in the following months.

Fri, 01/03/2014 - 12:48 | Link to Comment emsolý
emsolý's picture

If you like your Dow 17k hat, you can keep your Dow 17k hat.

Fri, 01/03/2014 - 12:51 | Link to Comment W74
W74's picture

The Hang Seng close excited me.

Fri, 01/03/2014 - 12:54 | Link to Comment Pairadimes
Pairadimes's picture

Like Adam said to Eve, "Stand back. I don't know how big it gets."

Fri, 01/03/2014 - 12:57 | Link to Comment Mad Mohel
Mad Mohel's picture

FUCK the paper, let it all burn!!!!!!!

Au BITCHEZ!!!!!

Fri, 01/03/2014 - 13:01 | Link to Comment Sofa King Confused
Sofa King Confused's picture

Dow 17000

Dow 7000

which comes first

Fri, 01/03/2014 - 13:01 | Link to Comment papaswamp
papaswamp's picture

Got to love the pressure on interest rates. Even Plosser just admitted the fed might be fucked and have to chase the bond yields. Interesting that gold is rising with the USD and Oil is falling against it. So much messing around by the fed and govt that the machine is out of control.

Fri, 01/03/2014 - 13:04 | Link to Comment Charles Nelson ...
Charles Nelson Reilly's picture

I think it is very possible that you could see gold & the USD rise in the coming months.  Then Old Yellin drops her QE bomb to the tune of $150 bill per/mo. around May/June of 14'.  Gold +1600 & the USD aroun $75

Fri, 01/03/2014 - 13:17 | Link to Comment Winston Churchill
Winston Churchill's picture

The FX action looks like it as well.

The Bearded One must be wondering if he bailed too late about now ,and Mr Yellen

prolly needs to change Depends.

Fri, 01/03/2014 - 14:40 | Link to Comment Soul Glow
Soul Glow's picture

Bernanke just wanted to wipe his hands clean before he left.

Fri, 01/03/2014 - 13:17 | Link to Comment papaswamp
papaswamp's picture

Could be... The fed has seriously screwed themselves. They could go full Japan if things start to look bad. Probably take another month or 2 of reports coming out (nfp plus weekly claims). 4 week moving average of NOT seasonally adjusted claims is up to ~434,000 new claims per week. Looking at the long term trend ( last 20 yrs) we have bottomed and should be moving towards the next ( government declared) recession... Not that we really got out of the last 2.
Last 20 yrs:
http://research.stlouisfed.org/fredgraph.png?g=qzP

Full series:
http://research.stlouisfed.org/fred2/series/ICNSA

Fri, 01/03/2014 - 13:31 | Link to Comment slightlyskeptical
slightlyskeptical's picture

Just like Bernanke, Yellen's first move will be a show of strength. She will taper further, and then later be forced to increase QE. There is no legacy in keeping soaring markets soaring. She will need a crash and then will apply her magic to save everything.

Fri, 01/03/2014 - 13:01 | Link to Comment squid427
squid427's picture

I was hoping for a 10 yr treasury bonus chart. Off to marketwatch I go.

Fri, 01/03/2014 - 13:04 | Link to Comment squid427
squid427's picture

10 yr @ 3.02.

Q. If the 10 yr stays above 3, will money rotate from bonds to stawks and drive them even higher?

Fri, 01/03/2014 - 13:09 | Link to Comment papaswamp
papaswamp's picture

Many might want to chase the yield depending on how long you want to hold it. Far fewer players in the bond market with the fed pumping equities. If they let loose on interest rates though, it could get very interesting.

Fri, 01/03/2014 - 13:08 | Link to Comment fuu
Fri, 01/03/2014 - 13:35 | Link to Comment knukles
knukles's picture

Ya'kno, fuu, a reverse repo is the same exact transaction as securities lending.... and what with the Fed holding all the treasuries, maybe there's a demand for collateral out there, no?
Else, makes no sense (as in motivation) to buy the stuff, injecting reserves into the system and removing them at the same time.
Well, doesn't make any sense doing both anyhow, but WTF do I know?

Fri, 01/03/2014 - 13:45 | Link to Comment fuu
fuu's picture

More than me on this subject I am sure. I'm still trying to figure out if the interest paid is sterilized or not. Where does the Fed get the interest to pay on the loan?It is a loan right? The Fed is borrowing cash from banks using treasuries as collateral? Like I said, you know more about this than I do.

Fri, 01/03/2014 - 13:08 | Link to Comment fijisailor
fijisailor's picture

I'm already starting to miss those sub $1200 gold price days.  Please bring it down.  I want to buy.

Fri, 01/03/2014 - 13:10 | Link to Comment papaswamp
papaswamp's picture

Going to have to wait for the next panic from the paper gold holders.

Fri, 01/03/2014 - 13:11 | Link to Comment squid427
squid427's picture

Thanks for the reply papaswamp

Fri, 01/03/2014 - 13:19 | Link to Comment syntaxterror
syntaxterror's picture

Time for some goddamn POMO.

Fri, 01/03/2014 - 13:29 | Link to Comment Laughing Stock
Laughing Stock's picture

 

 

Exactly!

No POMO

No GOGO

Douches!

Fri, 01/03/2014 - 13:43 | Link to Comment Sufiy
Sufiy's picture


GATA: China Gold Chief Confirms Gold Price Suppression by U.S.

GATA provides one more piece to our puzzle with Gold manipulation picture in place.

http://sufiy.blogspot.co.uk/2014/01/gata-china-gold-chief-confirms-gold....

 


Bill Murphy: JPMorgan Silver And Gold Scandal Will Be Exposed GLD, MUX, TNR.v, GDX

 "We continue our research on Gold and Silver manipulations and this year has already provided us with a lot of revelations on this topic. So far China has benefited the most buying record amount of Gold at the artificially suppressed price levels."

Fri, 01/03/2014 - 14:13 | Link to Comment DebtSlaveZombie
DebtSlaveZombie's picture

Man you guys get excited over the least little bit don't you?  This is start of year stuff... As I said yesterday, ignore these first 4 or 5 trading sessions.  Gold moving with the dollar and against oil?  LOL.  Yeah.  Short covering.  A lot of shorts are booking gains right now.  This should continue all the way to 1250 maybe 1275.  But that's it.  Back down we go in gold.  As for the S&P/DOW we are just churning and burning a little.  Some profits coming off.  Some portfolio juggling.  This is pretty routine really... But every little gyration in the market you guys are attaching some meaning to it.  Nada.  Look at 2013... That's what 2014 is gonna look like.  Just a little food for thought for you history buffs that like to compare S&P/DOW charts from 1999 and 2007/08 to now.  Look at the chart of gold in the range of 1976 to 1982 (7 years) to the chart of gold from 2002 till now.  They have very similar patterns.  500 to 600% gain from 1976 to 1980 then it fell all the way back to 320/oz by 1982.  It dropped 60% from its peak before it stabilized.  Today we have gold peaking at 1900-ish, similar break down pattern, and same time progression.  If we followed that same scenario, gold should hit 800 by end of 2014 then bounce again.  Although I think that's way too low, it's interesting that 800/oz would be a 100% retracement of gold to the time just after Lehman.

Fri, 01/03/2014 - 14:29 | Link to Comment tawse57
tawse57's picture

Isn't gold rising due to massive short covering?

Twitter is near highs again - madness IMPO.

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