• 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...

Stocks Have Worst Week In 9 Month; Gold Hits 6 Month Highs

Tyler Durden's picture


We started the week exuberant wearing the cleanest dirty shirt scoffing at the weakness of 'foreign' markets. By the end of the week, the Dow has dropped 5 days in a row in a week for the first time since May 2012 and the Nasdaq had its worst week in 9 months. The S&P dropped back into the red for 2014 - despite a late-day ramp effort - tracking AUDJPY all day long once again (and financials also red for 2014). VIX surged above 18% (and its term structure steepest since US downgrade) as credit spreads blew wider. Treasury yields tumbled 10-14bps on the week - the biggest drop since June 2012. Gold prices rose over 3% on the week to 6-month highs. Copper saw its biggest 2-week drop in 30 months. The USD slipped lower on EUR and JPY strength (JPY +1.9% - biggest surge in 7 months). YTD Gold +14.7%, S&P 500 -0.07%.


AUDJPY was in charge once again..


The S&P joins the Dow back in the red for 2014...


As All but Trannies and Russell lose post-Putin gains


Financials are now red for 2014 and Biotech is slamming Healthcare lower - leaving Ites the big winner for the year so far...


Seems like credit markets were right - whocouldanode?


Treasuries soared


Gold ripped as copper plunged...


Protection was in big demand in the afternoon into the event-risk-prone weekend...


VIX surged and the term structure steepened to its highest since the US downgrade...


Gold is the easy winner year-to-date with HY credit worst followed by the S&P 500...


Charts: Bloomberg

Bonus Chart: Gold nears the golden cross (50DMA >> 200DMA)...

Your rating: None

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Fri, 03/14/2014 - 16:08 | 4549459 pound the vix
pound the vix's picture

Ok...Let me check the playbook.....yep....Just a setup for new highs next week.  Ok buy the dip.

Fri, 03/14/2014 - 16:10 | 4549467 flacon
flacon's picture

"And many happy returns!" --> that means, let's hope this week is the start of a trend. 

Fri, 03/14/2014 - 16:11 | 4549475 AllThatGlitters
AllThatGlitters's picture

Gold ticking up a bit after the equity market close:

Live: http://www.pmbull.com/gold-price/

Fri, 03/14/2014 - 16:14 | 4549469 AllThatGlitters
AllThatGlitters's picture

We'll have to see. You could be right.  What's the playbook?  

If WWIII doesn't break out over the weekend, the S&P shoots to new highs and gold gets slammed back down Sunday night.

Fri, 03/14/2014 - 16:54 | 4549678 pound the vix
pound the vix's picture

Sarcasitic!  CNBC guest all have the same playbook "Buy any and all dips"

Fri, 03/14/2014 - 17:29 | 4549835 greatbeard
greatbeard's picture

>> "Buy any and all dips"

I've not participated but that has been a pretty profitable trade for the last few years.


Fri, 03/14/2014 - 16:25 | 4549542 Oxygen
Oxygen's picture

Nah.. Not this Time..

Fri, 03/14/2014 - 18:27 | 4550044 eclectic syncretist
eclectic syncretist's picture

This looks and feels like the year 2000 all over again.  Up, down, and really only sideways at the top for a while before the will to buy the bubble collapses.

Sat, 03/15/2014 - 06:59 | 4551474 Headbanger
Headbanger's picture

You could ask yourself a question..   "Do I feel lucky?"

Well... DO YA PUNK!?


Fri, 03/14/2014 - 16:23 | 4549466 superflex
superflex's picture

Me likey!

Fri, 03/14/2014 - 16:10 | 4549468 Pareto
Pareto's picture

Nice to see the "stack" take a bit of a front row seat.

Fri, 03/14/2014 - 16:11 | 4549474 Oxygen
Oxygen's picture

Look at the close number of the Dow

16 067.65

Look like Satan is here... .

Fri, 03/14/2014 - 16:13 | 4549476 SheepDog-One
SheepDog-One's picture

Whadafuck? Hell everyone knows US stawks can only go up and it's free money 4eva from 2008 till the sun burns out.

Fri, 03/14/2014 - 16:13 | 4549485 fonzannoon
fonzannoon's picture

Put me on record. This btfd will backfire. I don't know why. I feel it in my balls.

with that said, make sure to btfd

Fri, 03/14/2014 - 21:24 | 4550610 Greenskeeper_Carl
Greenskeeper_Carl's picture

Buying some Facebook couldn't hurt either...

Sun, 03/16/2014 - 03:41 | 4554164 MeelionDollerBogus
MeelionDollerBogus's picture

Dogbert sez: all schtocks go up!!

Fri, 03/14/2014 - 16:12 | 4549478 drinkin koolaid
drinkin koolaid's picture

It's the WEATHER!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Fri, 03/14/2014 - 16:14 | 4549494 Yen Cross
Yen Cross's picture

    I clipped my aud/jpy short trade too early yesterday (91.90 area) It looks like it could take another leg lower if the usd/jpy opens under the 101.20 area Sunday and tests the 101.00 barrier that's probably highly optioned.

Fri, 03/14/2014 - 16:19 | 4549519 drinkin koolaid
drinkin koolaid's picture

I have yet to meet a successful trader who didn't leave more money on the table than they've pulled out. Put this trade in your knowledge base, it's over, don't obssess about it, be patient - wait for the next low risk set up.

Fri, 03/14/2014 - 16:23 | 4549537 NDXTrader
NDXTrader's picture

Well said. I learned that lesson 12 years ago

Fri, 03/14/2014 - 16:30 | 4549557 Yen Cross
Yen Cross's picture


   It's no biggie fellas. It was a good week, and I like to square things up before the W/E. Especially with the current geopolitical climate. Thanks for the encouragement. :-)

Fri, 03/14/2014 - 23:33 | 4551023 JDFX
JDFX's picture

Sunday night into next week we'll be in the hot zone . So anticipate US.  weakness to follow through.... ? Things are likely to become more tensioned looking out next few weeks.

Just thoughts.


Fri, 03/14/2014 - 16:22 | 4549528 Cattender
Cattender's picture

it's a RECOVERY!!!!!!

Fri, 03/14/2014 - 16:36 | 4549588 Cattender
Cattender's picture

the more they print the more of a Recovery we have!!!!!! YES WE CAN!!!!!!

Fri, 03/14/2014 - 16:22 | 4549529 NDXTrader
NDXTrader's picture

I wonder how much the Fed and BOJ printed today to keep this turd afloat. The option boys are drinking top shelf tonight

Fri, 03/14/2014 - 16:24 | 4549530 Tinky
Tinky's picture

The simultaneous, correct trajectories of both asset classes is deeply disorienting.

Fri, 03/14/2014 - 16:26 | 4549547 GrinandBearit
GrinandBearit's picture

Win enough battles and you win the war... all the way to $1900 and beyond!

Fri, 03/14/2014 - 16:31 | 4549564 NDXTrader
NDXTrader's picture

Anything short of ICBMs and we will skyrocket Monday in "relief" of a non-probable outcome. Plus, futures expire Friday

Fri, 03/14/2014 - 16:53 | 4549671 FuzzyDunlop21
FuzzyDunlop21's picture

Yea. I see a fat 30 pt Monday relief rally right around the corner. No way Mrs. Debtfire lets the SPOOs go any lower. Anyone short over the weekend. . . I wish you luck

Sun, 03/16/2014 - 03:39 | 4554159 MeelionDollerBogus
MeelionDollerBogus's picture

I'm short the markets the next 2 years. Thankfully I can't get a margin call: I'm doing it the smart way. HVU. Have some VXX as well but HVU far outperforms VXX.

Fri, 03/14/2014 - 16:59 | 4549714 caustixoid
caustixoid's picture

I used to get tired of this phrase here, but it's been months since I've seen it, and if only for a short time, I felt like celebrating (before the next monkey-hammering):   GOLD BITCHEZ!

Sun, 03/16/2014 - 03:35 | 4554158 MeelionDollerBogus
MeelionDollerBogus's picture

Lost & Found: 1 monkey hammer, please claim within 30 days.

Fri, 03/14/2014 - 17:05 | 4549744 Ulterior
Ulterior's picture

so silver is an ugly duck? what happened, why nobody wants it as much as preccious one?

Fri, 03/14/2014 - 17:16 | 4549784 Oxygen
Oxygen's picture

It's may be a good time for the
Missing plane to show up with some nuclear devise inside it
And crash it somewhere...

Fri, 03/14/2014 - 17:30 | 4549839 Cattender
Cattender's picture

Da plane.. Da plane...

Fri, 03/14/2014 - 17:45 | 4549904 disabledvet
disabledvet's picture

My favorite part of ZH. "World War III...how'd the market do today?"

Crazy KGB Colonel is in charge "and everyone and everything is finally going right with the world."

Wonder if Goldman has that "total annihilation trade" of Cliff's Natural Resources still on? Long copper? You'd think that would be The Trade if we're talking Brass and ammo here.

Very confusing.
I do have one question...if all "paper promises" are now worthless why would I be buying gold? Shouldn't I be buying food? No, I don't think I'll be buying Puerto Rican debt here.

Lowville School District bonds look good though.

And if the Russians can cut off natural gas "going South" (where it is warm) why can't the same thing happen "going North" (where it is cold)?

Fri, 03/14/2014 - 17:45 | 4549911 FiatFapper
FiatFapper's picture

From the last chart, the previous golden cross in Q3 2012 didn't work out too well.

Fri, 03/14/2014 - 17:55 | 4549929 robertocarlos
robertocarlos's picture

When the missiles fly gold should be a moon shot.

Fri, 03/14/2014 - 18:07 | 4549971 q99x2
q99x2's picture


Fri, 03/14/2014 - 18:20 | 4550018 kodachrome
kodachrome's picture

The best part about reading zerohedge comments is catching people spelling simple words like precious and device incorrectly.

No wonder you fucktards don't understand bitcoin.

Fri, 03/14/2014 - 18:30 | 4550056 eclectic syncretist
eclectic syncretist's picture

And if there was the possibility of putting you on "ignore" I would have just done it.

Fri, 03/14/2014 - 18:52 | 4550117 Ban KKiller
Ban KKiller's picture

Its the wed. I mean veed.

Sun, 03/16/2014 - 03:33 | 4554155 MeelionDollerBogus
MeelionDollerBogus's picture

Those are the bitcoin users.

Sun, 03/16/2014 - 09:49 | 4554554 Doowleb
Doowleb's picture

You had no friends in school and volunteered as the hall monitor, didn't ya?

No one likes a comment spell nazi.

Fri, 03/14/2014 - 18:49 | 4550113 Ban KKiller
Ban KKiller's picture

This new "normal" is fun now that I am out of Wall Street.

Planted lettuce today.  Cut off the tops and rooted the bottoms. Faster way to grow and continious harvest. I harvest off of the same plant at least five times or more per season. 

Four eggs today from five hens. Someone is a slacker. Oh, yeah. Death, by law, to banksters. 

Fri, 03/14/2014 - 23:29 | 4551008 JDFX
JDFX's picture

Cheers for the lettuce tips !  My hens came back on lay few weeks back. So all is good.  


Fri, 03/14/2014 - 19:10 | 4550171 fuu
fuu's picture

Only $335,055,000,000 in reverse repos this week. Suddenly there is less cash sloshing around.

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