Stocks Slide, Gold Soars On Weak Earnings, Geopolitical Fears

Tyler Durden's picture

Despite an impressive ramp by USDJPY in the last two hours of trading (thank you Nomura and BOJ) whose purpose was to get the DE Shaw and all other correlation algos to push spoos higher, today's trifecta of the ugly guidance by Visa (which dominated the DJIA), very ugly earnings by Amazon (which dominated the Nasdaq) and the CME ES margin hike just proved too much, and while Friday may have been the new Tuesday following 11 "green" DJIA Fridays in a row, today's 123 point drop stopped the trend before lucky 12 out of 12.

As can be seen on the chart below, after hitting daily all time highs for several consecutive days, today's drop pushed the S&P back to levels last seen during last week's MH17 scare. A tactical near-term downgrade of stocks by Goldman in the last few hours of trading (following David Kostin's upgrade to his S&P price target two weeks ago) probably didn't help although (actually it helped since stocks rose since the time the Goldman report hit mailboxes) it is amusing that someone still thinks Goldman sellside research still has any sway (as opposed to merely indicating what the Goldman prop desk is not doing).


And while today was otherwise a rather mundane day, what stood out was an impressive ramp in gold toward the end of trading, and especially in the minutes before the close, which we attribute to rising geopolitical fears as both the situation in Ukraine and in Israel are getting worse by the minute.

In short, this week was largely a wash which makes sense ahead of next week's data slam when we get both the all important NFP and Q2 GDP prints. While NFP will almost certainly be a continuation of the part-time jobs soaring trend seen in recent months, the biggest question is whether Q2 GDP will print above or below 2.9%: if below, then the entire first half of 2014 will be negative, which according to some purists is equivalent to a technical recession. A bigger question is what climatic event will the scapegoat crew blame a collapse in Q2 GDP on,

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Headbanger's picture

Black Monday dead ahead comrades??


Or should that be RED Monday dead ahead comrades?

kliguy38's picture

gold soars because "somebody" is buying large tonnage of physical out of London...........PERIOD

ATM's picture

And because we all know that the printing of endless fiat currency is just in it's infancy.

max2205's picture

Interns working the desks till Sept... Enjoy

Dr. Engali's picture

Is it gold soars or cold sores?

QE49er's picture

Hors d'oeuvres.

Today was just a small appetiser to the great reset

JenkinsLane's picture

Or gold dores? [High fives all round!]

knukles's picture

Let's all get in period costume, take to the neighborhood streets, set the neighbor's trash can alight... you know the one who never takes the fucking thing off the street... dance, chant and praise Beelzebub the Accuser and Destructor, laughing and singing Beastly songs of Debauchery, Murder and Excess, Sloth and Gluttony, roast a pig over the trash can fire, demanding Cosmic Justice for the Sins of our Brethren in High Crimes against Humanity, ... the Angel of the Bottomless Pit, the Monkey Demons of the Abyss, the Very Son of Perdition Himself to Deliver us from His Insanity ... or just be glad the price of gold went up today.

And Prepare for Tomorrow's Display of Manhood watching Golovkin beat Geale almost to Death for Fun, Shits and Grins.

Pass the hot dog, popcorn, Jello and bandages.

TN Jed's picture

May as well call high tide a tsunami.

Dr. Engali's picture

Gold always seems to be able to poke it's head above $1,300 after option expiration.... curios.

Save_America1st's picture

was the late day ramp up in PM's due to the story on ZH about the African gold refining company that just "lost" (yeah, sure they did) nearly 3 tons of phyzz gold???

debtor of last resort's picture

Gold always seems to be able to rear it's ugly paper head.

A Nanny Moose's picture

...then the rehypothecators see their shadows, and ....Bam!

Cattender's picture

gas prices are still down lately here in Michigan... so therefore it is Still a Recovery. (the Dollar Tree was busy again today!)

knukles's picture

Oddly, one of the better fruit markets here abouts had emptier shelves than normal.... not scarcity, but carrying a substantially lesser choice of inventory than usual.  And there are a lot of new commercial for rent and lease signs up.  Now, rents and leases are lagging indicators, but if things were getting better, I'd expect those things to be not rearing their ugly heads.

And everybody is getting richer because of Electric Cars*.  Gas taxes are down because of electric cars, meaning more disposable income and thus, spending and thus, yadda yadda yadda.....


*I'm just the messenger, folks

Keltner Channel Surf's picture

Putting the big headline of a near 1% small cap decline aside, the Russell chart today resembled an EKG – that is, of a dead person – absolutely NOTHING,  complete horizontal, everything happening in the post- 5 a.m. pre-market slam, not a secondary move down, nor a bounce attempt – nada.  Yes, it’s late July, but this week was as pathetic as trading gets, worse than anything we’ve seen in 3+ yrs.

NoDebt's picture

What this market needs is some good false rumors of cease-fires.


ebworthen's picture

Fires, they'll blame the fires, and the "sweltering heat" of...July!

Who could have seen this coming!  Wildfires and heat in July!

Next, the leaves will fall off the trees in Fall!  Aaaaaaah!

Tick-tock, goes the clock:

Squid Viscous's picture

Don't blame me, i bought more Chipotle Grill and Zillow right before the close, can't get rich just sittin' around ... suckas 

JenkinsLane's picture

GDP and FOMC all on the same day! We really are going to be spoilt on Wednesday! [Claps hands in delight.]

buzzsaw99's picture

Even if a potential investor were to stipulate that AMZN could net $2/share anytime they want that still makes the p/e > 150. That means that they would have to believe that at some point in the near future AMZN can increase profits five fold to obtain some kind of reasonable valuation! This "market" is insane!

Pheonyte's picture

You clearly haven't learned that in the new normal, 2+2 can equal 5, or 3, or whatever Big Janet wants it to be. Off to room 101 with you.

Bossman1967's picture

Hey common core mathematics now if you can tell me how you got to 5 your right and 5 it will be! These kids,and I have one will be slavs with these educational standards we are allowing our schools to teach.Wake up America

Herdee's picture

Maybe all the investigations going on right now have got a few of the gold manipulators worried and off guard.That's why Germany pulled their big boys out of the London Fix.Fines are getting bigger and bigger it seems and Governments need easy money.We've seen some really big efforts on takedowns but gold has held steady.NSA to the rescue!Make the crooks pay!They're a bunch of sitting ducks because the NSA has every keystroke and conversation on every level of them.Traders,Central Bankers and Regulators.Time to pay up when Uncle Sam needs to pay the bills.It's time for the NSA to start helping the average working guy and go after the big con artists.Especially the ones at The Fed and Treasury.Lock 'm Up

WhackoWarner's picture

Honey I down voted you simply due to your fantasy that the NSA would ever help "the average guy".  it is Friday...go pour a cocktail already.  You obviously need to alter your thought process.

q99x2's picture

Blasphemy bitchez.

alexcojones's picture

Gold is part of the Grand Chessboard.

The part the MSM only rarely talks about to ridicule.

Gold Will Have The Last Laugh

And gold-holder like you.

BrigstockBoy's picture

Clearly it's the end of days...

syntaxterror's picture

Tuesday is coming up...

Usura's picture

Russia is long PM futures.  Some of the other BRIC countries are along for the ride.  The plan is to exercise options just prior to expiration next Monday, concurrent with the placement of large physical orders at the afternoon "fix" in London.  Both the USA and the UK will be toast by next Tuesday.  Short post because I'm off to the coin store, ASAP.

Winston Churchill's picture

Source ?

Much as I want to belive you, I'm not blowing my dry powder on your word.

quasimodo's picture

He is Eric King's first cousin so he knows. Gold will soar next week based on XXX and YYY when combined with bla bla bla, and here are these three fascinating charts that will blow everything out of the water!

Winston Churchill's picture

I'm not denying this is exactly  what will happen at some point.

Its a smart move ,and would fuck the US and Nato.

Just don't think Eurasia is ready to make that move if they can salvage something better,

without using the financial nukes, which would hurt them as well short term.

Thalamus's picture

Cool.  That might expedite things at the Comex.

fiboman's picture

and along gold, bolds also out of the woods

Gawd's picture

I am really tired of hearing the "gold soars" line over and over and I'm someone who owns physical gold. It's just idotic. Gold soars, just to be slammed back down tomorrow the same amount that it "soared" today. $13.00 up and down a day is not soaring. It's dribbling. When it's going up $100.00 per ounce, day after day, for a month, then talk to me about soaring. Silver Doctors is even worse. Every prognosticator on SD has been wrong. Time and again, year after year, wrong.

Gold and Silver have been shit for the last two years and remains shit. Yes, I understand ALL the nuances of gold and silver. Stop the fucking gold soars line until it really soars.


Stoploss's picture

It's a six sigma move on the chart with a fish hook...

The soar fits.



WhackoWarner's picture

I agree.  Owned gold/silver since 1994 to some degree.  My average cost that survives any sale to cover all this financial boondoogle still remains at maybe $500/oz. average.  Maybe 9.00 for silver.

All this dramatics I think are motivated by self-interest in some;  greed for gain in others;  and then refreshingly from some...good advice.  But the good advice folks predicted wild swings years and years ago.

Hard to take a conditioned group of envious folks who are truly looking to be rich overnight INTO the understanding that gold has no value at all;  beyond what you and I know.


jez's picture

Gawd: well said.


This just in: "Factually Inaccurate Headlines Cause Mouseclicks to Soar!"


I suppose gold did "soar" on ZH's chart. But that's because the y-axis has the tiny range of $1,285 to $1,325. You'd think Tyler would understand that this distorts the effect.


Back in the real world, I'm up one per cent compared to yesterday. My net worth ain't done much soaring.