Stocks & Dollar Drop, Bonds & Bullion Pop On Dismal Retail Sales Print

Tyler Durden's picture

Oddly, overnight news in Asia and Europe was terrible enough to juice US equity futures back to Monday's highs (and run those stops) as USDJPY was pressed up to 102.50... but dismal US retail sales data sent them reeling. Treasury yields are tumbling (5Y now -3bps on the week), gold and silver are jumping (over $1310 and $20 respectively) after an early slam down, The USD is getting monkey-hammered as EUR repatriation strength dominates, oil is up, and stocks have leaked notably back off the day's highs.

 

 

As Futures give back most of overnight gains...

 

Meanwhile, behind the scenes, the algos are up to their old tricks. Courtesy of Nanex.

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wolfnipplechips's picture

I'm certain we can blame these numbers on the weather somehow. You'll see...the next creative excuse is being worked on as I type this.

philipat's picture

Slight topic drift but has anyone else noticed the stealthy advance in Rhodium? It stays flat on most trading days but over the last year, when it did increase, it was in 10 and 20 Dollar increments. Then today, up 40 Dollars, now higher than Gold and catching Platinum. What gives here? I have never seen Rhodium mentioned even on PM websites and blogs??

NidStyles's picture

A few years back Rhodium exploded into the upside. It still does it once in a while still.

Spitzer's picture

It's a metal that is unmolested by the banking interests. So it will track iflation well.

I wish I was an unsophisticated dumbass who bought into some newsletters Palladium sales job. Too bad I am smart so I have mostly gold

NoDebt's picture

Jim Paulson was one CNBC this morning and he couldn't wrap his head around why retail wasn't improving.  I mean he was legitimately mystified.  "Jobs have been strong for 6 months, but nobody's buying anything?  Retail is the one outlier in the data."

I mean he really DIDN'T UNDERSTAND why Macy's and Nordstroms and WalMart aren't showing improvement.  And he runs a lot of money.

If he had spent 1 day on ZH and understood all the jobs are PART TIME (full time jobs STILL declining, 5 years into "recovery") and with declining wages, while the cost of everything average people need is going up, maybe this wouldn't be such a head-scratcher for him.

 

philipat's picture

Yes, I have been saying here for some time that it isn't rocket science. The US economy comprises 70% consumer consumption. So, realistically, for the economy to grow, requires increased consumption. With real net disposable incomes down and the costs of real essentials (Food, energy, Healthcare, Education) up, that isn't going to happen in discretionary spending.

KnuckleDragger-X's picture

You'll never get on CNBC talking like that...

Headbanger's picture

Rhodium is a strategic metal as it can withstand extremely high temperatures without oxidizing

So it's necessary for jet engines, rocket engines, nuclear reactors and lots more

http://en.wikipedia.org/wiki/Rhodium

So with a major war on the way....

fonzannoon's picture

I ran into a guy who was a real big shot in the auto parts business a few years ago. He was out to dinner with his hedge fund manager. The auto parts guy was huge into rhodium. He actually made his hedge fund guy rent space overseas and stockpile it for him. He sure seemed like he knew what he was doing.

NoDebt's picture

Catalytic converters on cars can use Rhodium as well.  Platinum, Palladium, all sorts of weird stuff.  That's why car guys sometimes know a thing or two about it.  Or think they do, anyway.

22winmag's picture

What the hell is up with Merit Gold? Are they being sued out of existence? It sucks that the least expensive and most reliable bullion company is, at least temporarily, out of business.

himaroid's picture

Check out Colorado Gold.

Karlus's picture

Ok, so how will this work with a market crash?

Option 1: You are in cash. Dip hit hard, a couple flash crash days/weeks and you buy in on all of your favorite equites (GOOG or whatever)

Option 2: You own Phyzz Silver, market crashes and then what....you trade physical for fiat? Like selling this stuff to individuals from craigslist. Wont the last thing people will want is to spend their cash (on anything)

Option 3: You have a ETN or something like SLV. Crash happens, doesnt everything get sold?

Option 4: Mattress: Return of investment, inflation....blah blah

Majestic12's picture

Option 5:  Meth...all in.....retire like a king in Patagonia...with Cummerbund (the ex-Dread Pirate Roberts)...

Majestic12's picture

These orgasms are getting shorter and shorter....and the foreplay is exhausting...NWO, we have to stop meeting like this...its over....

q99x2's picture

I'm ready to buy some gold and silver. It's time.

Bossman1967's picture

all is fine just wait till the treasuries sell today and paper gold hits the open market and new headline Stock pump oil and gold Dump. bla bla bla.

Ramesees's picture

6 poppin 5 droppin

Dre4dwolf's picture

As society modernizes and replaces jobs with automation, it is inevitable that the modernization of the work-force should lead to deflation, as you endup with more people working less hours for lower wages.

You transition from high paying full time jobs to everyone rotating shifts for the same low wage part time job.

This inevitebly means that workers have less money to spend , and the domestic economy suffers and asset prices deflate.

The greatest fear of a central bank is deflation, because given the right amount of deflation, it becomes impossible for the government to pay its debt, and since the government is essentially the enforcement agent for the Banks (govts are nothing more than a personal police force for bankers), it puts them in a situation where they either have to lend the govt extreme amounts of money , gift them new money out of thin air (effectively discharging the govt debt) and hyperinflation to try and restart the heart of the economy after a whole night of doing blow off a hookers ass.

 

No matter what, if you modernize the work force, you will have deflation.

No matter what, we are heading for more money printing because its the only way the true rulers (central bankers) can cover their ass and keep the slaves appeased for as long as possible.

They will do these occasional tests (tapering) to see / gauge how much money they can get away with printing, they prefer to print as little as possible to keep things moving, they want to strike a balance, where the common man losses all his assets and the government can still afford to pay its debts.

 

The entire premise of central banking and govt, is to screw over the little guy, because the little guy can't afford to fight back.

Governments and Banks are weak, they can't push around strong informed and educated citizens, but a middle class father working 8 hours shifts 6 days a week? the guy doesn't have enough time to fight back because he is trying to feed his family, this is their target demographic, the people they are actively trying to destroy and rob.

AssFire's picture

Your are dead on about the deflation- it has been the driving force for the bubble blowing. Without manipulation the assets' true values collapses the entire bnking system. The suspension of mark to market shows that clearly enough.

Dre4dwolf's picture

about being "dead on" just a random thought of the day.... I was gona make a point about corporations going out of business faster than new ones popping up to replace them . . . and I went off on a tangent.

You can't have a real recovery until more corporations are being formed than corporations going out of business.

 

Its soo funny when you think about the word play.

Corpse-orations its a Corpse because its a dead entity (it only exists on paper). "ation" or action = a suffix denouncing the idea of action like the word Plantation plant-ation plant-action (farm).

So a corporation is a corpse - farm.

When you need people to do the work, you hire "some-body" a body - corpse, you just need their body to do the work, so the corpse-ation hires a body.

That body has a number (social) and pay - roll uses this number to tax the corpse.

So really we are in reality all the real "walking-dead" and the purpose of corporations (corps-actions) is an entity to animate the puppet corpses (us the work force) the collection of some-bodies.

 

AssFire's picture

You would like "The meaning of everything". I found it fascinating and it made me wish I'd studied more Latin.

Spitzer's picture

You don't understand how capitalism is supposed to wrk. Less jobs because of automation is a good thing. Provided that there is no minimum wage law.

Dre4dwolf's picture

What is going to happen when cars pump their own gas, robots bar tend, robots serve tables, and the only company making money is the company selling the robots ? Who is going to go and buy all these services from all these robots ? When they cant afford it ? Because the robot they are trying to buy a cheeseburger from took their job two weeks ago ?

Modernization mechazation to this degree without social planning is doomed, there needs to a plan for such a transition into a jobless cashless economy, I dont think it will transition smoothly organically. 

King of the Juice's picture

The sole purpose of organic life is to give birth to synthetic intelligence - at least in my own dark mind.

At the minute humanity is in a hot air balloon; everyone is throwing ballast (read wage slaves) overboard just to stay afloat. Soon they'll have to throw themselves overboard too and the balloon can float off into Paradise

Omen IV's picture

Businesses that depend on discretionary income of consumers will continue to spiral down especially with the internet based sales market share increasing and utilities cost ever increasing % of income - the upper middle class has great exposure in the next phase of the wind down

Anecdotal - two weeks ago there was a class in Brooklyn on building from scratch - a simple TV antenna which captured 88 channels clear as a bell - picture and sound - this is a substitute for Cable - the place was packed ! cost - $12 bucks  for parts plus an hours labor - people wanted out from paying the Man! 

disintermediation of products and services accelerating everywhere

Dr. Engali's picture

So it's sideways churning business as usual as we wait for the white shoe boys to return from their stay at the Hampton's. What shall we talk about while we wait?

fonzannoon's picture

we have finally reached the point where our sheeple are making real sheep look intelligent.

 

http://nypost.com/2014/08/11/couple-dies-taking-selfie-on-edge-of-cliff/

Dr. Engali's picture

I'll restrain myself from making any pollock jokes..... it's difficult on this sad occasion, but I think I can do it.

fonzannoon's picture

Dude I read that and I felt terrible for that family and yet....how ridiculous is that? I mean seriously? That's where we are at.

Headbanger's picture

That sort of thing happens a lot at places such as Grand Canyon and Niagra Falls..

That's why there's the Darwin Awards: http://www.darwinawards.com/darwin/

Here's the 2014 Darwin Award Winner (so far): http://www.youtube.com/watch?v=ediz45Ybk0Q

fonzannoon's picture

That was incredibly impressive. Determination meets gravity.

IronShield's picture

The Polish family was enjoying themselves...

Didn't need to read further.  Is that wrong?

barre-de-rire's picture

i also lmfao when i heard that on tv.

 childs should sue apple for money.

IronShield's picture

Isn't this an OpEx week?  Next week tells the tale.  ;-)

Crabshacker's picture

Wow! Last month when I was doing my monthly junk silver buy they were pretty busy. Now I would of thought this # would of been better..,.(shrugs shoulders)

fuu's picture

Those nanex charts look more and more like visual master compression for some serious DnB.

http://i.imgur.com/l21rPWs.jpg

Tick-tick-tock bitches.

Kaiser Sousa's picture

how many markets trade the same way at the same times every fucking day?????

http://www.kitco.com/charts/livesilver.html

SheepDog-One's picture

That's OK, by now they've got stawks re-popped so all is well, resume panic buying.