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Silver Surges As Bonds, Stocks, And The USD End Week Unchanged

Tyler Durden's picture




 

While The Russell 2000 briefly regained positive territory for 2014 (up 1.5% on the week), the Dow, S&P, and Trannies ended the shortened and low volume week practically unchanged (and the Dow -2.6% YTD). Treasury yields oscillated as bad-news-good-news played out but ended the week practcically unchanged (10Y -1bps, 5Y +1bps). The USD drifted lower today to end the week very modestly positive (+0.1%) as EUR strangeth dominated JPY and CAD weakness). VIX went higher all week (admittedly OPEX-impacted) as underlying stocks remained bid. Credit markets ended the week wider than they opened on Tuesday (despite equity strength). Depsite the USD, commodities rose on the week with Silver and WTI crude up almost 2% and gold up 0.5%. For an options-expiration day, today's volume was very weak. And 2014's best performing S&P 500 sectors... Healthcare and Utilities.

 

While the Nasdaq ands Russell high beta muppets got the attention, the "big" indices ended the week practically unchanged....

 

Despite the OPEX pinners desperate to ramp stocks into the open via USDJPY (which failed)...

 

Leaving the Russell and Nasdaq green in 2014 and the rest lagging notably...

 

With equities being led in 2014 by Healthcare and Utilities...!!!

 

VIX rose all week...

 

Credit ended wider than it opened...

 

 

The USD pulled back to almost unchanged on the week (with plenty of divergence on the week)...

 

And US Treasury yields also rallied back to unchanged on the week...not ethat bonds started rally almost perfectly at 830ET

 

But gold, silver, and WTI crude rallied notably on the week...

 

 

Charts: Bloomberg

Bonus Chart: Of course, equity markets are all about discounting the fun-durr-mentals... (h/t @Not_Jim_Cramer)

 

Bonus Bonus Chart: GroupOff...-33% from AH Highs...

 

 

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Fri, 02/21/2014 - 17:09 | 4463137 HyperinflatmyNutts
HyperinflatmyNutts's picture

Silver!!  Real money bitches...

Fri, 02/21/2014 - 17:11 | 4463153 StacksOnStacks
StacksOnStacks's picture

SILVER BITCHEZ!!!

FTFY

Fri, 02/21/2014 - 17:13 | 4463166 Deathrips
Deathrips's picture

Sorry guys..i bought some at 18.50 it went up. I bought some at 19..it went up again. I bought at 20.50 and it went up again.

 

Its all my fault.

 

RIPS

 

Fuck You JPM!!

Fri, 02/21/2014 - 17:14 | 4463174 kliguy38
kliguy38's picture

bot it from 14 to 35 and from 35 down to 18.50 .....still buying

Fri, 02/21/2014 - 17:29 | 4463251 DoChenRollingBearing
DoChenRollingBearing's picture

Who, who who will write a full-throated "The Case for Silver" article for my blog?  Woe is me as I am not expert enough nor a fan enough to do a really good job.

gmail me at my moniker or leave a message at my blog if interested.  Knowledge and passion, please.

The Bearing promises minimal editing and this would not be a straw-man article.

Fri, 02/21/2014 - 19:23 | 4463569 The Vineyard
The Vineyard's picture

How many grams of silver does it take to buy a cup of coffee?  Bitches.

Fri, 02/21/2014 - 20:11 | 4463725 DoChenRollingBearing
DoChenRollingBearing's picture

In the USA: 2 -3 grams Ag (depending on where you go)

In Korea: +/- 5 - 10 grams (depending on where you go)

Fri, 02/21/2014 - 20:31 | 4463774 greatbeard
greatbeard's picture

> How many grams

.5 at my house. 

Sun, 02/23/2014 - 05:38 | 4467410 MeelionDollerBogus
MeelionDollerBogus's picture

Wish I could help but I don't think it needs a full blog.

Simply put: we are in a world of fraud, theft & treason in many nations, governments conspiring against their own people in finance & in arms, all around the world, and it's flagrant. That which is honest is either an escape-hatch or a panacea. It may not be both but it will be one. Silver is among the honest for no one can fake those atoms. An atom of silver is what it is & nothing else is it, as is the case for molecules that make hydrocarbon petroleum condensates, gold atoms, morphine pills, pure copper pipes or circuits, etc.

I wouldn't argue only for silver or most for silver: the world coming is an unstable one even in how the future itself will shift for needs of weight, tools, weapons & food, so I'd suggest one LOCALLY observe & determine how to cope there, or if a need to leave is better, investigate THE NEW LOCALE for the same criteria of needs.

Then, as Larry the Cable guy says, Git 'er Done.

Fri, 02/21/2014 - 17:31 | 4463261 HyBrasilian
HyBrasilian's picture

Ag going UP means only one thing... [INNbux ~ wherever they are printed & whatever they're called... reveal their TRUE value]...

~~~

As far as I know... JUDAS wasn't paid in 'script'

Fri, 02/21/2014 - 17:59 | 4463339 semperfidelis
semperfidelis's picture

In other news Yanukovych exit stage left. Ukraine president has left Kiev for Kharkov. Video shows protester in front of the presidential administration building. Police gone.

This is clusterfuck on both fronts, as opposition is booed on stage, young man takes over mike - http://www.youtube.com/watch?v=YBOfS-14jX0

Second video here https://www.facebook.com/Bogdana.Babych

Now confirmed - Yanukovych is gone. http://www.youtube.com/watch?v=s72NLnabzcY#t=110

Fri, 02/21/2014 - 18:00 | 4463353 fonestar
fonestar's picture

Fake silver is tearing shit up!

.999 FINE PAPER

Fri, 02/21/2014 - 18:14 | 4463385 HyBrasilian
HyBrasilian's picture

FAKE ~ as in... NOT arbitrary binary digital code [backed by NOTHING]... I'm speechless!

Fri, 02/21/2014 - 18:30 | 4463433 fonestar
fonestar's picture

It's the very idea of "dollars" "government" and "backing" that got your pea-sized brains in trouble in the first place.

Fri, 02/21/2014 - 18:14 | 4463391 fonestar
fonestar's picture

It seems that fonestar will need to explain this to you slowly, in simple terms as well.  Part of manipulated markets means it's manipulated up and down (so there's nothing to get excited about).  Also, if you were really behind silver (like fonestar) you would want silver to be a denominator and not a numerator.

Fri, 02/21/2014 - 19:43 | 4463640 HyBrasilian
HyBrasilian's picture

NUMERATOR = 'Paper AG price' [same 'PRICE MASTERS' that control his binary code 'scripts']

DENOMINATOR ~ fonestar [in April 2013]... Bragging about having equalized his weekly mom's allowance stipend into AG [@ >$30 an ounce], on account of BTC 'volatility'...

~~~

Do I really need to LINK this ***T?

Fri, 02/21/2014 - 21:11 | 4463859 q99x2
q99x2's picture

Good thing they didn't include a chart of Bitcoin this week eh Fonestar?

Fri, 02/21/2014 - 23:35 | 4464232 fonestar
fonestar's picture

It's down what, about 25% or so... no big deal.

Fri, 02/21/2014 - 17:20 | 4463202 Rock On Roger
Rock On Roger's picture

Keep on buying please! Whenever I buy the price goes down.

 

Stack On

Fri, 02/21/2014 - 17:30 | 4463256 DoChenRollingBearing
DoChenRollingBearing's picture

That is completely normal for me too.  80% of the time when I buy Au or Ag, the price goes down in the next day or two.

Fri, 02/21/2014 - 18:01 | 4463356 XenoFrog
XenoFrog's picture

That's funny because every time I add to my stack, it gets monkey-hammered. You can actually chart my major purchases just by looking at the past five years.

Fri, 02/21/2014 - 17:12 | 4463168 StacksOnStacks
StacksOnStacks's picture

Also, please tell me there is video of Cramer pumping GRPN before the drop!

Fri, 02/21/2014 - 17:26 | 4463241 Winston Churchill
Winston Churchill's picture

Is a groupon like a gangbang ?

I get confused with American slang.

Fri, 02/21/2014 - 19:14 | 4463538 TheRedScourge
Fri, 02/21/2014 - 17:12 | 4463159 LapseOfReason
LapseOfReason's picture

May I please have the ZH definition of the words "surge" and "soar"?

Fri, 02/21/2014 - 17:14 | 4463173 greatbeard
greatbeard's picture

>> definition of the words "surge"

As of the moment I'm showing silver up 0 so I'd say surge = 0.  Soaring, I think, would be up $.01

 

 

Fri, 02/21/2014 - 17:22 | 4463216 Soul Glow
Soul Glow's picture

Silver was up higher than any other sector and continues to kick ass in '14.

Surging and soaring.

Fri, 02/21/2014 - 17:39 | 4463288 agent default
agent default's picture

Ok, lets not blow things out of proportion here.

Fri, 02/21/2014 - 18:00 | 4463354 Soul Glow
Soul Glow's picture

PM was up half a percent today.  Stocks were down and so was the dollar.  This has been the trend since the start of the year.  

Surging and soaring.

Fri, 02/21/2014 - 17:12 | 4463162 fonzannoon
fonzannoon's picture

back to healthcare, utilities while commodities rally. this is like retro QE2 days.

Fri, 02/21/2014 - 17:29 | 4463233 Dr. Engali
Dr. Engali's picture

Fonz back to your gold question. I believe that if the market is rigged then we must assume the market is rigged to the upside as well. Having said that, the central planners do have limitations. When they drove down the price of gold below production cost they had to meet serious resistance. After all what is easier, digging gold out of the ground below production costs, or emptying the morgue's vaults by taking delivery? For this reason I believe they have no choice but to let gold rise. But what the hell do I know? We are all just guessing. I guess that's why Jamie is richer than me.

Edit. Not that technicals matter any longer, but it sure looks like a double bottom around $1,150.

Fri, 02/21/2014 - 17:37 | 4463281 fonzannoon
fonzannoon's picture

thanks Doc, I wish i had a better grip on how much production impacts the market. seems like such a small amount compared to above ground stock...but if no one is parting with their above ground stock, then it's gotta be important..but again we are talking about a manipulated paper mess, and miners who seem all too happy to be the bullion banks dirty hot pocket twats.

Fri, 02/21/2014 - 17:30 | 4463252 Soul Glow
Soul Glow's picture

Markets are acting like they are in the last stage of the growth cycle, going for conservative investments like HC and Util.  It is possible that equity is having a dead bounce and will now continue the selloff that started the year.  As for gold?  It could continue to rally for a little while longer. 

$1450 by quarters end.

Fri, 02/21/2014 - 17:35 | 4463270 Winston Churchill
Winston Churchill's picture

Looks like its about to rollover.

Even a doble dose of POMO today couldn't keep it rising.

End of the dead cat bounce I'm thinking.

Fri, 02/21/2014 - 17:38 | 4463285 Dr. Engali
Dr. Engali's picture

Damn POMO can't keep it up, sounds like it needs a blue pill.

Fri, 02/21/2014 - 17:17 | 4463190 Soul Glow
Soul Glow's picture

Precious metals are completely dominating the markets.  It is no surprise considering the macro-economic news that the IMF wants a "One Time Savings Confiscation", the Federal Reserve laughed about "to big to fail", and that QE never worked and to Un-Taper would create a loss in the system.

Gold and silver are all that is left to invest in as the housing "recovery" tumbles, fiat money stumbles, and bonds wallow in their eminent demise.

Fri, 02/21/2014 - 17:18 | 4463195 fuu
fuu's picture

TOMO surged to $104,045,000,000 today.

Fri, 02/21/2014 - 17:18 | 4463196 LawsofPhysics
LawsofPhysics's picture

"I find your lack of faith in paper disturbing..."  Darth Ben.

Fri, 02/21/2014 - 17:19 | 4463201 Wile-E-Coyote
Wile-E-Coyote's picture

Silver surge read the fucking graph.

Fri, 02/21/2014 - 17:27 | 4463242 Rainman
Rainman's picture

Stoopid question of the day .... Is the bonus chart using GAAP or non-GAAP est. earnings..?

Fri, 02/21/2014 - 17:45 | 4463302 disabledvet
disabledvet's picture

nice volume so someone was buying.

forget the markets for a moment...in my view this is not how the "world" wants to start 2014 (Ukraine, Venezuela, Thailand...ongoing in Syria, etc.)

THEN you put those metals prices in context (you could probably buy a country with your gold or silver right now...especially if you've been buying it in dollars.)

Even copper is holding its own in dollar terms.
If i'm on the floor of the NYSE i'm making a market in this: http://seekingalpha.com/symbol/ORB?source=search_general&s=orb

This is your best play on "paying it forward" right now.
Obviously there are others...stuff well beyond playing the bid/ashttp://seekingalpha.com/symbol/OSK?source=search_general&s=osk.

"another O" it would seem.
obviously you have the entire energy space.
Utilities off to a strong start says to me "sound money, almost no inflation, de-mininimus recovery but recovery nonetheless."

Healthcare of course says the exact opposite...but that has been rallying on an inflation trade for many, many, many years now.

Fri, 02/21/2014 - 17:27 | 4463246 TalkToLind
TalkToLind's picture

Now I ain't sayin she a gold digger.  But she ain't messin with no bitcoin holders...

Fri, 02/21/2014 - 17:29 | 4463253 Save_America1st
Save_America1st's picture

didn't paper silver finish the week flat?  It surged a dollar last Friday.  It opened on Monday at like 21.83, right?  And it looks to close today right near that same level. 

Face it...last Friday TPTB/Evil Empire gave the monkeys the day off and then they capped silver at almost exactly 1 higher.  Then all week they capped it below 22 and it stayed flat.

No biggee...but they are showing us that they're always in control.  The can run it up to 30 in a day or down to 19 if they want.  It's still a screamin' deal now while 2 dollars below the cost of production though, so there's no reason not to be scooping up as much phyzz as you can now while it lasts!!!

Anyways...have a kick ass weekend all.  We'll see what the monkeys do come Sunday evening to start the week. 

Fri, 02/21/2014 - 18:19 | 4463407 LoneStarHog
LoneStarHog's picture

Where would silver be if *The F'ing Commercials* had not shorted OVER SIXTY MILLION OUNCES, as of Tuesday> http://www.cftc.gov/dea/futures/deacmxsf.htm

Fri, 02/21/2014 - 18:26 | 4463421 walküre
walküre's picture

Stocks saved last minute by the rescue squad. Trend is obvious though. I wouldn't want to be long here. Big boyz are selling heavily into every bounce. We've been here before. About 6 years ago to be exact. This is a repeat of 2008, step by step. Be out or be nowhere.

Fri, 02/21/2014 - 18:34 | 4463444 RaiZH
RaiZH's picture

The problem I have with silver is, is that the premiums are too high & there's also a 20% tax ontop here in the UK.

Still stacking though :) 

Fri, 02/21/2014 - 19:04 | 4463504 eurusdog
eurusdog's picture

If you compare prices at at the beginning of THIS week, with prices at ending of THIS week, I believe surge is the wrong word. Had this article appeared LAST Friday afternoon, surge would have certainly been appropriate. But, this is ZH so add an extra day to the week so you can get the big headline in.

Fri, 02/21/2014 - 19:50 | 4463613 fijisailor
fijisailor's picture

It's articles like the following that tell you to buy PMs with both hands.  They're still really cheap.

Newmont Mining reports $2.5bn loss for 2013

http://www.mineweb.com/mineweb/content/en/mineweb-gold-news?oid=230097&s...

Despite record silver, gold output, PanAm Silver reports $445.8m loss

http://www.mineweb.com/mineweb/content/en/mineweb-silver-news?oid=230080...

Fri, 02/21/2014 - 21:34 | 4463917 Spungo
Spungo's picture

If I were Mr Yellen, I would watch the Cramer show just to fuck up every single stock he picks. He likes company A? I short 3 billion dollars worth at market.

Sat, 02/22/2014 - 00:51 | 4464369 knowshitsurelock
knowshitsurelock's picture

Shot across the bow for POMO to jump the shark in a black swan regardless of the cognitive dissonance and the "unknown unknowns" of the long tail wild card in the "Bed of Procrustes".

Sat, 02/22/2014 - 04:38 | 4464579 Remnant_Army
Remnant_Army's picture

It is good not to think of silver or gold in $ terms. Very deceptive. 

http://www.thewarningsecondcoming.com/eternal-father-will-prevent-new-wo...

Sun, 02/23/2014 - 05:44 | 4467416 MeelionDollerBogus
MeelionDollerBogus's picture

it is good not to think of the bible in factual terms, or in morally positive terms, for it is neither.

Mon, 02/24/2014 - 01:03 | 4467412 MeelionDollerBogus
MeelionDollerBogus's picture

Definitely keeping an eye on USLV now.

http://scharts.co/1jEPpmy

21.83 USD spot, USLV closed at 62.37

the math: I'm using "1/c" rather than directly using a constant c, no need to force the convention as long as you "get it"

21.83 3.92 / 62.37 = c = 2,845.21375716 , very close to the 2800 I've been using (scatterplot not yet available but it's coming, do it yourself if you're impatient, freestockcharts.com CSV data).

If silver hits 18 this would put USLV to 18 3.92 / 2845 = 29.28 / share.

Stay frosty. It's electrons, fiat, don't waste a fortune on it, stack, but keep in mind what this can do. By the time silver = 50 spot, 50 3.92 / 2845 = 1,606.4978 / share.

http://flic.kr/p/kpoT2k slide 1 : regression (power) trend R2 = 0.98 USLV = silver 3.92 / 2364.56
http://flic.kr/p/kppK2Z slide 2 : projections with & without USLV ETF decay
http://flic.kr/p/kprn3f slide 3 : ETF decay on factor vs date, USLV & silver

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