• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

ADP Reaction - Bonds & Bullion Surge As Dead-Cat-Bounce Stock Bulls Purge

Tyler Durden's picture


Precious metals had begun to jump higher before the ADP data hit but once it did - and disappointed - gold and silver spiked (over $1,270 and $20 respectively). Equity markets kneejerk reaction was a spike higher which immediately faded into a crash to recent lows. Dow futures are testing 2014 lows - as are S&P 500 futures. 10Y Treasury yields touched 2.60%; Nikkei futures are once again testing 14,000 as USDJPY breaks below 101.

JPY is in charge as usual - and USDJPY broke 101 again...

But the reaction is clear...


Dow futures are testing 2014 lows...


Once again - as a gentle reminder - here is a chart showing how crucial this surprise in ADP is to Friday's NFP surprise...




Charts: Bloomberg and @Not_Jim_Cramer

Your rating: None

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Wed, 02/05/2014 - 09:35 | 4403470 Temporalist
Temporalist's picture

$20  and $1270 breached!  Call in the monkeys!  Hand out the hammers!

Wed, 02/05/2014 - 09:38 | 4403482 cossack55
cossack55's picture

Can you buy hammers at CVS?

Wed, 02/05/2014 - 09:42 | 4403490 Levadiakos
Levadiakos's picture

Give me liberty propped up by centralized force, the IRS, and an enormous bureaucracy or give me death

Wed, 02/05/2014 - 09:44 | 4403505 knukles
knukles's picture

This is watchu get when the Morgue and Goldilocks are net long shiny and the world realizes its bad out there

Long live the Ministry of Propaganda

Long live Central Planning

Wed, 02/05/2014 - 09:52 | 4403546 kliguy38
kliguy38's picture

Vive la Bernanke Vive la Yellen..........long live free money......down with gold

Wed, 02/05/2014 - 09:56 | 4403549 GetZeeGold
GetZeeGold's picture



Clearly we need tax credits to institute global warming!


This cold crap is killing the economy.

Wed, 02/05/2014 - 10:00 | 4403577 Panem et Circus
Panem et Circus's picture

Hory Chit! Gold up 1% and Silver up 3%!!!

Wait, nevermind. Sorry false alarm. My ounces still haven't changed.

Wed, 02/05/2014 - 10:06 | 4403603 Stackers
Stackers's picture

Problem is if you drop it too far it just goes SPLAT

Wed, 02/05/2014 - 10:33 | 4403725 Occident Mortal
Occident Mortal's picture


My short DJIA, long gold trade of December 2013 is doing OK today.



Wed, 02/05/2014 - 10:53 | 4403805 butchee
butchee's picture

100% retrace courtesy of a bunch of disengenous traders at JPM

Wed, 02/05/2014 - 09:44 | 4403512 fonestar
fonestar's picture

...meanwhile Bitcoin looks very stable and uneventful over at btc-e.com.  Probably because nobody there gives a shit about what your government does or does not do.

Wed, 02/05/2014 - 09:56 | 4403556 Mad Mohel
Mad Mohel's picture

You're being lulled into complacency boy. The war machine never sleeps.

Wed, 02/05/2014 - 09:55 | 4403557 fonestar
fonestar's picture

I know... I know... sad isn't it?  The brave new world, one where you and your very, very important slave masters aren't really newsworthy?

Wed, 02/05/2014 - 10:00 | 4403582 Oh regional Indian
Oh regional Indian's picture

Very disingenuous fonestar. By earlier action (as in last year) all this should have been pushing BTC well above it's $1,200 high.

It's stability as you are calling it may be a sign of some irrelevance except as a medium of exchange and not profit?



Wed, 02/05/2014 - 10:22 | 4403661 fonestar
fonestar's picture

Bitcoin rallied hard during the first senate hearings, by the second senate hearings the markets figured out that these people need not have any attention given to them.  If Bitcoin would like to take some time off, even for a few months that is fine by me.  It is well deserving of the rest and relaxation.

Wed, 02/05/2014 - 10:26 | 4403681 Oh regional Indian
Oh regional Indian's picture

By the way, I do appreciate your intelligent pro-BTC trolling here. It is trolling, you agree?

But well done, if sometimes technically unsound on your end. 


Wed, 02/05/2014 - 10:29 | 4403698 fonestar
fonestar's picture

What part of fonestar's trolling has been "technically unsound"?

Wed, 02/05/2014 - 10:22 | 4403665 lordylord
lordylord's picture

Everyone is holding and sitting on their 1's and 0's waiting for the next unexplainable surge in price.  I can't imagine anyone would want to buy a bitcoin for $1000 when so many "mined"/bought them for practically free.  Nobody wants to buy goods/services with them and merchants don't want to hold them for more than a microsecond.  I'm not surprised it's stable...for now.   

Wed, 02/05/2014 - 10:25 | 4403678 fonestar
fonestar's picture

Uh, hate to break it to you guy but most of the people buying BTC are not doing it using "dollars".  In a lot of these local currencies BTC is already five figures.

It's not about the Benjamins it's about the Vlad.  Get with the times.

Wed, 02/05/2014 - 10:26 | 4403680 lordylord
lordylord's picture

Five figures in Yen?

Wed, 02/05/2014 - 10:29 | 4403690 fonestar
fonestar's picture

Five figures in Yen and in Roubles.

Wed, 02/05/2014 - 10:33 | 4403726 lordylord
lordylord's picture

And it's 10 figures when converting to bits of string.   Obviously fonestar doesn't understand currency convertion ratios.

Wed, 02/05/2014 - 10:37 | 4403743 fonestar
fonestar's picture

Who doesn't understand dipshit?  Because Bitcoin is vastly superior to all of these national currencies and can be played off each other, its ascension and hyperdeflation are assured.  Nobody cares if you or Zeroheads "get it" or not, but it is pretty funny to watch since you guys spent years mindlessly yammering about Gresham's Law, sound money, etc...

Your practicum?  You failed.

Wed, 02/05/2014 - 10:49 | 4403795 lordylord
lordylord's picture

IF it's adopted by a MUCH larger population than it is now.  That is a BIG "if" considering that governments are not going to sit around while they lose power and control.   The guys converting bitcoin on silkroad aren't sitting pretty right now, are they?  The difference between gold and bitcoin?  The long hand of gov definitely reaches the internet, but can it reach around the 28" barrel of the man who won't take it in the ass anymore?

Wed, 02/05/2014 - 11:19 | 4403926 fonestar
fonestar's picture

Governments around the world can't even define Bitcoin or most of the other technologies available, much less control them.  Your "government" and their currencies are just the latest victims of progress that drives back the foot that's slow.

Wed, 02/05/2014 - 11:27 | 4403954 Double.Eagle.Gold
Double.Eagle.Gold's picture

<-- fu@k fonestar

<-- worship fonstar

Wed, 02/05/2014 - 11:30 | 4403976 fonestar
fonestar's picture

Do not worship fonestar.  Worship Satoshi. 

fonestar came in his name.

Wed, 02/05/2014 - 11:36 | 4403997 Ghordius
Ghordius's picture

fonestar, please stop spamming. the universe does not consist of you, Satoshi and Bitcoin. It's costing so much effort just ignoring your endless multiple replies

Wed, 02/05/2014 - 11:37 | 4404011 fonestar
fonestar's picture

Just as soon as some people here stop spamming their anachronistic dollar-gold paradigm.

Wed, 02/05/2014 - 10:29 | 4403687 BandGap
BandGap's picture

Is that asshole satoshammy your twin brother on the other line?

Wed, 02/05/2014 - 10:21 | 4403666 fonestar
fonestar's picture

Give fonestar Bitcoin and he will buy all those things.

Wed, 02/05/2014 - 09:40 | 4403491 BandGap
BandGap's picture

No, but you can buy stuff that gets you hammered at CVS.

Monkeys shouldn't drink, BTW. It ruins their aim.

Wed, 02/05/2014 - 09:48 | 4403527 Pool Shark
Pool Shark's picture



"Monkeys shouldn't drink, BTW. It ruins their aim."

Which explains the ADP "Surprise" scatterplot...


Wed, 02/05/2014 - 09:42 | 4403498 Levadiakos
Levadiakos's picture

Give me liberty propped up by centralized force, the IRS, and an enormous bureaucracy or give me death

Wed, 02/05/2014 - 09:54 | 4403553 gwar5
gwar5's picture

No hammer, no soda, no candy bars for you!  Drugs and marijuana only!   


Wed, 02/05/2014 - 10:16 | 4403636 Levadiakos
Levadiakos's picture

The black helocopters have collected 2 of the only 3 ppl in USA that can make LSD. People, we are soooooooo fucQed

Wed, 02/05/2014 - 09:43 | 4403496 Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

And the US session hammerdown in 3..  2..

Wed, 02/05/2014 - 09:42 | 4403499 Sudden Debt
Sudden Debt's picture

you do know I'm blaming you if they do right?

Wed, 02/05/2014 - 09:43 | 4403500 Mad Mohel
Mad Mohel's picture

One day all the monkies and all the hammers won't make a difference. Can you picture it? That glorious day when it will get away from them and they won't be able to stop it! Reminds me of something.

The world is full of giants. 
They have always been here, lumbering in the schoolyards, limping through the alleys.
We had to learn how to deal with them, how to overcome them.
We were small but fast, remember?
We were like a wind appearing out of nowhere.
We knew that being clever was more important than being the biggest kid in the neighborhood.
As long as we keep our heads down, as long as we work hard, 
trust what we feel in our guts, our hearts,
Then we're ready.
We wait until they get sleepy,
wait until they get so big they can barely move,
and then walk out of the shadows,
quietly walk out of the dark—and strike.

Wed, 02/05/2014 - 09:45 | 4403518 Ulterior
Ulterior's picture

anybody else stoped reading this BS after second line?

Wed, 02/05/2014 - 09:58 | 4403533 Mad Mohel
Mad Mohel's picture

Whatsamatta you don't like pomes in the mroning?

I didn't down ya, it's just someone else thought you were a fagget.

Wed, 02/05/2014 - 10:00 | 4403578 knukles
knukles's picture

Sumbuddy go breaka hizzn fonestars kneez fur Chrizzagez

Wed, 02/05/2014 - 11:11 | 4403895 Ace Ventura
Ace Ventura's picture

Wait......wasn't that the Maserati commercial during the super bowl?  If so, it does seem like a universally applicable theme for the current times, eh?

Wed, 02/05/2014 - 10:10 | 4403614 fooshorter
fooshorter's picture

I'vve havd an unfvortunate smvellting acccident!!


Wed, 02/05/2014 - 10:24 | 4403679 The Dunce
The Dunce's picture

Gold smold.  I'm long on cat food and bullets.  Now that's living.  Bitches.

Wed, 02/05/2014 - 10:32 | 4403718 Kaiser Sousa
Kaiser Sousa's picture

New York wasnt havin any of that....

any more obvious....



Wed, 02/05/2014 - 09:38 | 4403483 Richard Chesler
Richard Chesler's picture

The Obozo recovery is here to stay. Forever.


Wed, 02/05/2014 - 09:41 | 4403487 BandGap
BandGap's picture

When I think about it I touch myself.

Wed, 02/05/2014 - 09:57 | 4403563 kralizec
kralizec's picture

Hello, Bronco's fan!

Wed, 02/05/2014 - 09:41 | 4403488 eurogold
eurogold's picture

And this is news ?

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