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Precious Metals Have Best Week In 4 Months As VIX Plunges To Cycle Lows

Tyler Durden's picture




 

Fear - or no fear. VIX was monkey-hammered to fresh cycle lows at 10.34 today (still double-digits for now) and OPEX lifted US equity markets (Dow Industrials, Transports, and S&P) to new record highs. Notably European peripheral bond spreads jumped higher (worsened) by their most in 15 months this week. "Most shorted" stocks rose a massive 4.6% this week (surging this afternoon) - the biggest squeeze in 14 months. The USD lost ground (-0.4% on the week) led by EUR strength as JPY closed unch (hardly supportive of the 2% gain in the high-beta honeys this week). Treasuries were nothing like as exuberant as stocks this week (30Y +3bps, 5Y unch) having traded in a 10-11bps range all week. The ubiquitous late-day VIX slam forced stocks to all-time highs. Precious metals had their best week in 4 months closing above $1300 (gold) and $20 (silver) back at 2 and 3 month highs respectively and pushing gold above the S&P year-to-date.

 

Gold +9% YTD,Silver +7.1% YTD, S&P +6.9% YTD, 30Y Futs +5.55% YTD

 

Trannies were trumped by the Russell 2000 as the small-cap momo all-clear takes hold...

 

As the squeeze continues...

 

with the biggest week for a short squeeze in 14 months...

 

Today's OPEX makes comparisons hard but the trend in VIX today was towards 'hedges' as opposed to risk-addition...

 

Gold and silver had quite a week... (their best in 4 months)

 

Treasuries traded in a 10-11bps range this week but closed nearly unch...

 

FX markets saw EUR strength (USD weakness but JPY close unch...)

 

But as @Not_Jim_Cramer noted - JPY is on borrowed time...

 

Charts: Bloomberg

Bonus Chart: When the S&P 500 has been this rich to the fed balance sheet in the past, its has corrected...

 

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Fri, 06/20/2014 - 16:06 | 4879102 NOTaREALmerican
NOTaREALmerican's picture

Vix...  (big inhale)   Ahhhhhh.

Fri, 06/20/2014 - 16:08 | 4879113 Headbanger
Headbanger's picture

Attention!  Attention!!

The drinking light is now lit!

Please imbibe accordingly.

 

Thank you.

Fri, 06/20/2014 - 16:12 | 4879124 TeamDepends
TeamDepends's picture

Done!  And Cheers!!!

Fri, 06/20/2014 - 18:14 | 4879354 Manthong
Manthong's picture

Vix.. Schmix..all part of the Fed/CB Ponzi.

and gosh.. time for another beverage.

Fri, 06/20/2014 - 16:27 | 4879161 LawsofPhysics
LawsofPhysics's picture

Way ahead of you headbanger.

Fri, 06/20/2014 - 16:07 | 4879105 quasimodo
quasimodo's picture

Always better than a kick in the ass. I wouldn't get too worked up yet at this point.

 

Fri, 06/20/2014 - 16:10 | 4879119 TeamDepends
TeamDepends's picture

Maybe they can build an ice wall around JPY.

Fri, 06/20/2014 - 16:15 | 4879136 Rainman
Rainman's picture

fuck this ... I going long everything tomorrow, spread me across the board !!

Fri, 06/20/2014 - 16:27 | 4879163 Theta_Burn
Theta_Burn's picture

The only thing funnier than these markets, is that WTF!? clouded spread.

Fri, 06/20/2014 - 16:44 | 4879192 Kaiser Sousa
Kaiser Sousa's picture

just saw a segment on CNBS where they had a guy on explaining how financial planners/advisors/money managers r ripping off investors by charging fees and commisions on the front and back end irrespective of portfolio performance...

the 2 host let one of their panel members who, surprise, was one of those conmen rip off artists take up the entire segment concocting a hypothetical scenario designed to defend the practise, and discredit the guest who simply was attempting to disclose what anybody with an ounce of knowledge already knows...

that being - if your in their casino you r getting fucked going and coming whether u make a penny or not....

fucking hate CNBS...

http://video.cnbc.com/gallery/?video=3000286491

Fri, 06/20/2014 - 17:11 | 4879245 Jackagain
Jackagain's picture

These are actual recent "expert" headlines about gold...right before the price took off...

 

“Why I Still Hate Gold” – James K. Glassman, Kiplinger, 6/4/14
“Pisani: Gold Can’t Get Traction” – NBC News, 6/4/14
“Kiss Gold Market Good-Bye” – Bloomberg, 6/4/14
“Gold Miners Fail to Launch” – Forbes, 5/14/14
“Barrick Gold Downgraded to Strong Sell” – Zacks Equity Research, 4/14/14
“Goldman Stands by $1,050 Gold Target on Outlook for Recovery” – Bloomberg, 4/14/14

 

Fri, 06/20/2014 - 17:31 | 4879280 kill switch
kill switch's picture

Euro Pacific does the same thing,,,3%IN 3% OUT...

Fri, 06/20/2014 - 18:19 | 4879364 Manthong
Manthong's picture

a guy's got to make a buck or two/three somewhere..

Fri, 06/20/2014 - 18:29 | 4879382 KingFiat
KingFiat's picture

My bank recently tried to con me in a similar way.

Being a big heavy on precious metals, I decided to put a bit of my funds in equity (risky, I know). First I went to my bank asking for advice. Their advice was that I invested in six different actively managed index equity funds. They did not tell me, but I knew from prior research, that all of these high cost equity funds gave my bank 0.5-1% of the invested funds each year as a referral fee. Of course i told my bank "no thanks".

Return commissions like that ought to be illegal. Unfortunately they are not where I live.

Fri, 06/20/2014 - 18:55 | 4879424 Manthong
Manthong's picture

ok.. you are one of the few.. the proud,, the enligtend.. 

Methinks the PTB will fight like mad to keep Au at 1300 until China busts it loose because they have achieved their hedge against the buck.

Fri, 06/20/2014 - 19:00 | 4879433 KingFiat
KingFiat's picture

And China will help them for as long as they are still buying. Why pay more than you have to?

Fri, 06/20/2014 - 16:58 | 4879222 Jackagain
Jackagain's picture

And in the silver markets....

Comex Silver Futures Open Interest Is Equal To Total Silver Produced In 2013

http://investmentresearchdynamics.com/comex-silver-futures-open-interest-is-equal-total-silver-produced-in-2013/

Fri, 06/20/2014 - 17:42 | 4879298 SilverIsMoney
SilverIsMoney's picture

I have a gut feeling, even though I still see short term weakness, we see alltime nominal highs in gold and silver by the end of the year...

This farce is starting to unravel right before us. I know it has been for awhile now but the acceleration of it seems to be going exponential...

Fri, 06/20/2014 - 18:31 | 4879386 Manthong
Manthong's picture

this is the bottom..

JPM has built a few million  oz Ag stockpile whilst shorting the shiny for a reason..

even thoough Ag is great for bullets (Kemosabe)  and trade they don't give a crap about the worth of it and the distribution will commence soon.

the kitco chart will evolve to $5.00 gradations soon.

Fri, 06/20/2014 - 17:44 | 4879305 Jungle Jim
Jungle Jim's picture

How long will The Powers That Be allow gold to remain above $1300, and silver above $20?

Fri, 06/20/2014 - 18:34 | 4879392 KingFiat
KingFiat's picture

My guess is: Until the markets open again Monday.

Fri, 06/20/2014 - 21:11 | 4879683 samcontrol
samcontrol's picture

I guess my timming for all in retard silver options was really bad...

and France plays it,s best game in 15 years,

nice week.

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