Gold Nears 4-Month Highs As Stocks Dump-And-Pump

Tyler Durden's picture


European markets were ugly going in: Portugal's largest bank on the ropes and macro data weak. US earnings calls confirmed no Q2 bounce back and macro data piled on (along with various GDP downgrades). Equity markets opened gap down with a big flush of "most shorted" longs and Russell 2000 dipped into the red for 2014. Then the rally-monkey turned up, slamming VIX and lifting USDJPY to squeeze shorts and drag stocks "off the lows." Once shorts reache dunch, stocks limped lower "off the highs." Away from the v-shaped recovery in stocks, Gold broke above $1340 (4-month highs) and silver gained. Oil turned around early losses closing up for 1st time in 9 sessions ($103). The USD rose (on EUR weakness) but remains lower on the week. VIX ened 0.8 vols higher at 12.5 (well off its intraday highs though). The day ended with Carl Icahn warning that "it's time be cautious about US markets." VIX pushed higher into the close as investors remember Europe opens in 8 hours.


V-Shaped recovery... but still ugly from Payrolls...


Cash indices remain down on the week with Russell still the lagard


The short slam was ramped all the way back to unch...


As USDJPY was large and in charge bouncing off 101.00


VIX ramped higher out of the gate then fell back.. but pushed higher as everyone remembered EEurope opens in 8 hours...


Stocks remain in a land of their own as repo, growth, and EU bank strains weigh on FX and bond markets....


PMs did oil


and Treasury yields dumped and pumped...


Charts: Bloomberg

Bonus Chart: Russell 200 UNCH YTD...

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Thu, 07/10/2014 - 16:06 | 4944758 NOTaREALmerican
NOTaREALmerican's picture

We haven't had a bonus chart for while....

Thu, 07/10/2014 - 16:14 | 4944797 NoDebt
NoDebt's picture

True.  It has been a while.  I blame Bush.

Thu, 07/10/2014 - 16:31 | 4944840 BC6
BC6's picture

Why trust gold when you can trust the bankster class. Oh, wait..

Gold just sits there all shiny and looking pretty kind of like Kate Upton.

Thu, 07/10/2014 - 17:05 | 4944930 vulcanraven
vulcanraven's picture

Speaking of blaming Bush, here's some Liberal dribble for some lulz

So much garbage in that article I don't even know where to begin. The comments section is pretty pricless as well.

Thu, 07/10/2014 - 16:50 | 4944905 Silver Bug
Silver Bug's picture

The ponzi scheme that is the US stock market is going to come crashing down sooner or later. The bull market in gold is far from over. It has simply moved into stronger and stronger hands.

Thu, 07/10/2014 - 16:07 | 4944759 FuzzyDunlop21
FuzzyDunlop21's picture

Same shit, different toilet

Thu, 07/10/2014 - 16:10 | 4944778 Gunga
Gunga's picture

I'm amazed that anyone still has any faith in paper markets. Crazy paperbugs.

Thu, 07/10/2014 - 16:12 | 4944788 topshelfstuff
topshelfstuff's picture

something very fishy with the Miners

around 2:10EST the Miner stocks, DUST, NUGT reversed with the Bear stock=DUST made a 10% move from down 5%ish to Up 5.5%, and on Volume

Thu, 07/10/2014 - 16:17 | 4944807 crazybob369
crazybob369's picture

I know, I've been scratching my head over that. Gold/silver up over 1%. GDX down 1.5%. Someone is dumping major amounts of paper.

Thu, 07/10/2014 - 16:18 | 4944812 kensdad
kensdad's picture

Algos smelled blood in the water.

Thu, 07/10/2014 - 16:19 | 4944819 NoDebt
NoDebt's picture

If you're still "trading" gold, I'd recommend you rethink that.  It's proven to be one of the most manipulated paper markets in the world.

Buy physical, stash safely, keep mouth shut, leave alone for a couple decades.

Fri, 07/11/2014 - 06:40 | 4946539 samcontrol
samcontrol's picture

well , there has been many days with miners up ans silver flat these up.has nothing to do with paper.
Because I was told on here , miners are paper.

Meanwhile my all retards are now up over130%.

Thu, 07/10/2014 - 16:16 | 4944799 ebworthen
ebworthen's picture

FED spun cotton candy.

Bonus chart:

Thu, 07/10/2014 - 16:16 | 4944801 Cattender
Cattender's picture

Owning physical Gold is Silly. the stock market is the way Baby.. <Sarcasm>

Thu, 07/10/2014 - 16:41 | 4944862 johngerard
johngerard's picture

Both are the way to go. Gold up, stocks up.

Thu, 07/10/2014 - 16:16 | 4944802 BobTheSlob
BobTheSlob's picture

Question to the ZHers:
First let me state: YES I know...if I don't hold it I don't own it, but this is for IRA money.
Do any of you have experience with Kitco's pools, Bullion Vault et. al.? Positive or negative?

Thu, 07/10/2014 - 16:46 | 4944883 crazybob369
crazybob369's picture

There are many reputable gold storage and custodial outfits. The bigger question is whether placing your gold in an IRA is a good idea. I don't think so. Gold & silver should be considered asset protection only. They are lousy investments. Additionally, by placing it in an IRA you're putting it out there and telling the governmnet; "here, take it." There are a number of proposed actions in congress to allow for the confiscation of IRA assets and replacing them with gov bonds. Better to buy the metals and then have unfortunate boating accident on the way to hide it on a remote island.

Thu, 07/10/2014 - 20:38 | 4945740 BobTheSlob
BobTheSlob's picture

LOL...boating accident. I see why you have your "Bob" name! It's a self directed checkbook control IRA set up as an LLC. The draw with KITCO is that I call the shots as the "officer" of the LLC. If TSHTF I can convert to gold and make a large withdrawal and deal with the IRS later. I want a portion of the IRA as gold, not all of it.

Thu, 07/10/2014 - 23:13 | 4946147 disabledvet
disabledvet's picture

The real trick is making yourself disappear.

That includes "the real you" too.

Thu, 07/10/2014 - 19:03 | 4945375 jmcadg
jmcadg's picture

Had a BV account, worked fine, made good on the up move in silver. Doubled money (more fluke than anything) then decided it ain't mine, the PMs not the fiat. It never would be mine, and even if it was, I'd never get it. Not sure if that's any use, but how I read the tea leaves.

Thu, 07/10/2014 - 16:29 | 4944836 Sudden Debt
Sudden Debt's picture

Tomorrow is friday... And it will be all rainbows and fairydust that will help people forget about reality...

Thu, 07/10/2014 - 16:35 | 4944847 Al Huxley
Al Huxley's picture

Big ugly reversal on the miners today, I'm guessing all those shorts the commercials are holding right now are going to pay off big for them in the next couple of weeks.  Overnight dump of millions of oz, on deck and coming soon...

Thu, 07/10/2014 - 20:08 | 4945604 Greenskeeper_Carl
Greenskeeper_Carl's picture

I noticed the same thing. GDXJ finished down in a pretty big way despite gold finishing up for the day, for several days in a row, approaching a 4 month high, didn't make since for the miners to dump from over 46 to barely above 43 like that. Gives me a feeling tomorrow isn't going to be pretty for the shiny stuff or the miners. Nice smack down in gold, and a jump in stocks to get the Dow over 17 going into the weekend.

Fri, 07/11/2014 - 06:42 | 4946542 samcontrol
samcontrol's picture

nada q ver . pure bla bla.

Thu, 07/10/2014 - 16:40 | 4944855 johngerard
johngerard's picture

Gold has definitely bottomed. 

Thu, 07/10/2014 - 16:43 | 4944868 world_debt_slave
world_debt_slave's picture

gold, that old relic that keeps on shining

Thu, 07/10/2014 - 16:49 | 4944903 TabakLover
TabakLover's picture

Volitility is back........Jack.

Thu, 07/10/2014 - 16:57 | 4944934 thismarketisrigged
thismarketisrigged's picture

isnt it amazing, how every fucking dip is bought by ''investors'' in this fucking joke of a ''market''?


u would think even the most bullish ''investor'' would want to let the ''market'' drop so they can by it much cheaper, but a 5 pt drop in the s&p is bought by every ''investor''.


Thu, 07/10/2014 - 18:53 | 4945331 Squid Viscous
Squid Viscous's picture

I was thinking "this is the day" at 8am...even 930 am, pressed hard on the shorts then Lucy pulled the ball away again and I got royally fucked...maybe next time

Thu, 07/10/2014 - 19:46 | 4945544 Al Huxley
Al Huxley's picture

Buy the dip on the S&P, and sell the 'breakout' on the miners is the only way.  I got whipsawed myself twice in a row (on the fucking miners - scared out of a short position yesterday, then busted out of a long position today).  It seems I will never learn....

Fri, 07/11/2014 - 06:43 | 4946543 samcontrol
samcontrol's picture

you shorted miners at these levels, are you feeling well?

Thu, 07/10/2014 - 21:05 | 4945812 Keltner Channel Surf
Keltner Channel Surf's picture

Yeah, a foolhardy "perhaps this is IT” blinded me to the Russell opening below the S3 pivot, squarely on the 50 DMA, where machines feed like piranhas.  It seems algos have become even more insidious and clever since April (or perhaps the dearth of volume and volatility lets them stand out like bones in an X-ray), with larger and quicker retracements, double or triple fake-outs at every pivot and half-pivot, and a proclivity to often sawtooth aimlessly for 3 hrs before making an entire move in one 2m candle that, of course, is immediately reversed.  The only constant seems to be their operation at the hourly and daily chart level with respect to overall scheme, with all smaller periods subject to a random fleet of rotating algos.  They know what levels they’ll hit, but change how they get there every day.  I seem to do better when I open a position just before 9:30 during their pre-market fake-out, then ignore it for a few hours, bracketed stop and limit orders in place at their favorite unloading spots.  The more you fiddle around, the worse you do.

Thu, 07/10/2014 - 23:19 | 4946160 disabledvet
disabledvet's picture

But only on a full moon.

Fri, 07/11/2014 - 06:31 | 4946536 Keltner Channel Surf
Keltner Channel Surf's picture

Success vs. the machines once every 28 days . . .  yeah, that's about right

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