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Stocks Follow Copper Bounce, Ignore Bond, Bullion Safe-Haven Bid
Between AUDJPY and and VIX slamming, the S&P 500 is pushing back up towards green. However, a glance at gold prices (at six-month highs $1365), Treasuries (retraced all of Friday's non-farm-payrolls losses), and Swiss 2Y rates shows a safe-haven bid is alive and well. Yuan offshore rates are modestly strengthening and copper prices are bouncing as hopes remain that the unwind of the multi-trillion-dollar inflation of the Chinese shadow-banking system has run its course and all is well again. Perhaps the algos are confused once again that Europe does not close for another hour.
It seems the algos were not told about the shift to DST in the US (and not Europe) as they try to ramp into the European close that doesn't happen for another hour...
AUDJPY running the show with stocks...
Bonds are well bid...
And copper is bouncing as China's NPC closes (and the Yuan rises modestly)
As a reminder - this is a long way from being over given the re-mortgaging of Chinese collateral. As a gentle reminder - here is how the Chinese cash-for-copper deals work (and are unwound)...
Charts: Bloomberg
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Perfect. Now let's see if the ZH effect works both ways ...
(I'm sure it doesn't. Things only 'work' if they mean stocks up)
I find it hard to believe they've been able to keep it green today. NDX is a joke. I was sure it would be testing the 50 day SMA. I'm the A hole as usual.
too funny ...
the Dow, S&P, and NasCrap r fucking jokes....
110+losses erased in minutes meanwhile in the phony paper Silver market repeaed attempts to drive thru $21 mark is met with attempts to smash it back...Silver is the one they r the most afraid of becasue it is and has always been in the reach of the common man....please believe it...the charts clearly tell the tale....KEEP STACKIN.
http://www.kitco.com/charts/livesilver.html
Took these pigs less than 2 hours to turn the algos back on...it's NEVER gunna end!
Look for some Chinese official to announce that China stands ready to support their market when needed.
no sellers period.....market is in a comma induced by the FED
You are right, but someone sure got out early this morning. Probably some levered hedge fund who was forced to sell due to the overnight blood bath in the Japanese and Chinese Market. Is anybody paying attention to the size of these declines and advances are in Japan and China? Amazing.
".market is in a comma"
Are you sure it's not in a period instead?
I think you mean, "market is in a comma (,) induce by the Fed." ;)
Peak Madness ! ....the " Candy Crusher " game to IPO for $7.6 Billion fiatscos !
http://www.reuters.com/article/2014/03/12/us-king-ipo-idUSBREA2B0KP20140312
Peak Huxley! mkt cap of centrifugal bumble-puppy companies to exceed 1 trillion soon...nice $2 rally in facefuck today, who could have seen that coming??
let's see - copper dropping from $3.85 to $2.90 is not a big deal, but when it bounces 3 cents its bullish! got it
Nope - it's EXTREMELY bullish!!!!!!!!!!!!!!!!! Yahoo!!!!!!!!!!!!! What, you haven't opened up a few new credit cards to get long copper on margin yet?
Dr. Copper is bipolar.
You forgot 4c. Rehypothecates sold copper as collateral with bank-B, and sells copper into domestic market for quick cash.
the house of cards has some desparate players; trust is breaking down as the price is discovered by waning demand...
same with iron ore and probably alum.
coal is toast,
from "levering up"
to "warring up."
I fail to see how the problem of "lack of issuance" relative to treasuries is solved if suddenly we have a (collective) hot war with Putin.
Again I am at a loss to explain equities...missed most of last years rally...in theory you could have private Armies fight this thing...which is pretty scary if you think of it since there are nuclear weapons "over there."
So, this is a breakdown in the cyclic hedge for raw material? Or is there another force at work here? With the lowering cost (value?) of the raw material, does this also lower the value of the collateral and force margin hikes?
How come when gold gets crushed, its just "paper gold." But when it goes up, it is "bullion."
I track my gold holdings against my bullion dealer's price. It NEVER reflects anything but the general market, and it lags by a day or so.
The Gold :Silver ratio is soaring. Why isn't silver climbing with Gold. William Devane and Glen Beck told me they would be skyrocketing by now.