Stocks Fade Early Pump As Good News Is Bad News

Tyler Durden's picture

For the 5th day in a row, US equities have levitated in the pre-open and faded away quickly soon after. Today is different though in 2 ways: the pump was de minimus and the dump is early. It seems the initial claims good news is indeed bad news for stock investors. Treasuries continue to bear flatten once again as 30Y is rallying and 5Y selling off further; gold is steady at around $1300 and the USD is rallying modestly. Copper and oil prices are rising. European stocks are also faltering with DAX giving up all its early gains.

The S&P is experiencing deja deja deja deja deja vu...


And European stocks are fading fast on the better than expected claims data in the US...


Commodities are rising in the last hour with copper and oil having had the best morning so far...


Charts: Bloomberg

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firstdivision's picture

WTI to da moooooooooooooooooooooooooon! Jed Clampett will be buying mansions all over the world shortly.

Headbanger's picture

Told you mooks it was gonna dump!

Boston's picture

Treasuries continue to bear flatten once again as 30Y is rallying and 5Y selling off further

The 30yr rallying means some bull flattening is going on too, no?

fonzannoon's picture

Gold is steadily hemorrhaging....

So interesting to see the rest of the commodity complex holding up and gold getting dumped. 

new game's picture

think china is the key as it is real collateral???? just my guess. paper dump by real holders speculating?

edit: real coll. = paper gold=haha

fonzannoon's picture

I wish I had a clue. Silver never validated gold's move up so it seemed to make sense that gold would come back down. To see the rest of these commodities climb is pretty interesting. Will they pull gold back up?

Or will we see risk off, crude come crashing down with the other commodities and even drag the indexes lower as people go to cash and bonds....

Boston's picture

Or will we see risk off, crude come crashing down with the other commodities and even drag the indexes lower as people go to cash and bonds....


That's right.

When, not if, we see risk off, treasuries will rally. Even with yesterday's minor dip in the S&P, treasuries rallied.

What happens to treasuries when the S&P finally 'dips' 10% or more?

Al Huxley's picture

Fonz, what we have here clearly are 2 dynamics working together to put downward pressure on the gold price:

1) the global economy is recovering at a rapid pace - you can see that in the rising prices for commodities - as Chinese growth accelerates and demand picks up, they'll be putting more and more upward pressure on these prices.  Naturally, gold being a hedge against uncertain times, it's being sold.

2) the other big factor you need to keep in mind when thinking about the price of gold is the ongoing collapse of China.  The credit bubble that's been driving that unsustainable growth has finally popped, and all the hot-money commodity deals are starting to unwind.  This, and of course the margin calls as the collapse accelerates will put increasing downward pressure on gold prices as they're forced to unload their most liquid assets to cover those calls.


Hope this helps you understand what you're seeing in today's gold market.

fonzannoon's picture

Totally clears it up Al, much appreciated.

Al and Boston....I believe these markets are rigged....but man is it me or does  it feel like everyone is staring at each other and one person is about to scream "SELL" and we get a 1987?

I could see the 10yr at 2% tomorrow.

new game's picture

gold is the last REAL collateral left(when credit dies up) although it can be represented falsely as paper, but non the less it gets sold.

ps. don't sell the gun or lead...

Al Huxley's picture

It feels shakier than it has in a while, but I still get the feeling that until the FED actually raises rates, as opposed to just talking about it, these corrections are all going to be bear traps.  Even if we get a yield curve inversion that usually leads a major trend change by a few months.  So far, on the longer timeframe the market doesn't look like its REALLY concerned about anything right now.

fonzannoon's picture

i may throw a few shorts out there to keep it propped up just in case.

new game's picture

at the core people still have to eat, shit and drink whist living some where and use ferns to do it all....

ps. ferns will still work (ina pinch-hehe) for ass wipe...

new game's picture

Al under premiss 1 i agree and disagree, agree if credit expansion=growth, but we are see telltail signs of that sputtering here and there. ultimately there must be an end consumer/user(manufaturing). that is the focus of my watch...

Al Huxley's picture

It was meant as sarcasm - two mutually exclusive forecasts, both being said to occur simultaneously, and both bearish for gold.  I'm practicing making up bullshit to explain market moves on the fly, with a spin that's agreeable to the majority sentiment, as I'm trying to get a gig writing for Bloomberg or Market Watch...

new game's picture

ok smart is smart(compliment-no sarc), non the less, your comments are a must read...

we can only, ultimately, watch and see and throw out  snarky comments as it morfs morbidly...

new game's picture

bullish for hsg? no? i'm confussed...

SheepDog-One's picture

Calling all degenerate gamblers to the rigged casino floor!! PLACE YA BETS! Go on....let it all ride on black, you know ya wanna.

Conax's picture

All news is 'bad for gold'.

China is booming, no need for safe havens - gold down

China is failing, must cover bad bets, - gold down

Silver didn't follow gold's rise- gold down

All events possible lead to cheaper gold.  Silver is even worse.

There's a high dirt content in earth's silver crust.


(Foke these pukes, keep stacking as you can)

Make_Mine_A_Double's picture

At some point gold has to resert itself.

Our company posted it's worst Q4 loss just now for the 66 years and it wasn't the god damn weather. It was exposure to China and Europe trades that killed us.

Strip away all the bullshit and the global economy is in the shitter and looking more unstable every day. My guess is your about to witness a sequence of events in the world for which the Fed will not be able to manipulate via pushing paper into equities.