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Volatile Day: Gold, Oil, & Bonds Dump As The Dollar Jumps
Today was a significant day for many markets. For the 7th time in the last 8 months, US Treasuries opened the month with weakness (30Y up 8.5bps, 2Y +3bps from Friday). Significant JPY and GBP weakness pushed the USD Index to fresh 14-month highs (+0.25% on the week). USD strength smacked gold (-$20 to $1265), silver, and crude oil significantly lower (WTI under $93 and Brent testing towards $100, both down over $3). US equities decoupled (lower) from VIX and JPY-carry around the European close after hitting new all-time highs in the early session (over 2,006 for S&P Futs). Volume was better (but then it was a down day). Despite oil weakness, Trannies took off leading the day (with Dow and S&P closing lower from Friday). Credit traded with stocks for most of the day but ignored the late-day VWAP ramp in the S&P, closing at its wides. The ubiquitous late-day buying panic saved S&P 2,000... because it can.
2.5% of all trades today are for 1 share!
— Eric Scott Hunsader (@nanexllc) September 2, 2014
1 out of 4 trades today is for less than 100 shares. This is a record since odd-lots began reporting Dec 2012
— Eric Scott Hunsader (@nanexllc) September 2, 2014
Which helps explain the machines' new tactic for tickling stocks higher for VWAP sales (oddlots vs quote stuffing)
Because it's all about 2000...
From the "good" data this morning, stocks struggled... only to rip back positive into the close...
But from Friday's close, Trannies are up; Dow and S&P down...
Treasury yields surged...
The 'sell' Treasuries at the start of the month trade...
Perhaps September is recoupling month?
Credit decoupled towards the close...
And VIX decoupled around the European close...
The USD surged - driven by JPY and GBP weakness...
EURJPY and USDJPY decoupled entirely from stocks and after the US open, so did AUDJPY...
Which sent PMs (gold 3-month lows) and oil tumbling...
Crude oil prices plunged...
Gold and USDJPY appear to have recoupled...
Charts: Bloomberg
Bonus Chart: Ye Olde Japanese Rate Vol vs Gold correlation continues to gether pace... all about bank VaR /cash management
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SPY finished red. Someone at NY Fed, they in trouble..................
-1; but it was a good try. Very obvious chart painting.
I was buying the 1 shares to hold 2000 so I can unload all these hats.
Worked better with the NASDAQ.
DavidC
This talk about low volume bs has to stop. Why? Because if institutional investors were truly concerned, you would see them selling massive amounts of stock driving markets lower. If nobody is worried enough to sell, who the hell cares about low volume? Every smart PM will sit on their hands and allow the programs to take their portfolios higher and higher.
Get mad about what allows this (fed, ecb) but accept that it can and probably will go on for a very, very long time.
Nobody wants to sell, because there is more leverage now than we have ever seen in our lifetimes, with trillions in derivatives on top like a cosmic house of cards. When it actually starts to fall, it's going to rock the world. Which is why our policy is to destroy every bit of real capital left to keep the ponzi going, and Blame Putin.
Deep state is ringing a bell, boys & girls. Jupiter's out of the USA's "free-money, credit-for-all" 8th House by mid-October, and gone for 12 more years. Better strap in buckaroos.
I don't understand your post at all. Are you talking Astrology?
Currency valuations are only done by the counterparty, not the creator or the holder.
In other words, the Fed can dream and so can the rest of you about this going on forever, but in the end it's China and Russia that will determine the fate of the USD, not any one of us or any one of the con artists that work at the Fed,
Disagree.
How many times are the criminals going to be allowed to shake the tree, looking for weak hands??
I look forward to when their world is shaken and turned upside down forever.
USD strength smacked gold (-$20 to $1965)
You were off by $700.00 and even though it's a misprint it should be $700.00 beyond that!!!
Might as well laugh
Diana Ross - Upside down
http://www.youtube.com/watch?v=4GtyMeEcPPE (3:12)
World War III breaks out, limited nuclear exchange occurs in Kashmir, gold drops to $50 an ounce
"gold drops to $50 an ounce" - and good luck actually taking delivery.
What's the name of the profilic poster here..you know the asshat trader one?
Posted last week that he had bought gold, was long yen & short USD showing graph tramlines showing topping out at 82...
The real assholes are those who "invest" in gold while listening to "traders". Forget about short-term timing – either you believe that the same dynamic between gold and fiat currencies that have played out over thousands of years will ultimately play out again, or you believe that this time will be different.
Don't short the dollar until it hits resistance, just a tad more to go. The resistance at 82 was weak and the Russian and Chinese traders hadn't built up big enough positions to insure they could crack 73. Of course they have to get through 79 before they get to work on 73...
gap bewteen reality on ground & oil price will is interesting to look at.
the more shit there is, cheaper it becomes. how funny
...oddly that doesn't seem to be applying to dollars.
Well, ignoring any changes in consumption/flux, yes, of course.
ALL Markets are RIGGED.
In the New Normal.
Period.
Until they're NOT.
I find it pretty scary when they're optimizing the market manipulation for minimum cost.
Seriously, you have the ability to print unlimited USD, and can buy lots of 100 shares or 1000 shares or a million shares at effectively the same cost, and you're trading one share? To me, this is terrifying.
Yes, and that's why the final stage almost certainly must be a loss of confidence that will accelerate spectacularly, and leave almost everyone in the world stunned in its wake.
reality down..... dolla up.... party on
PARTY ON, GARTH!
Gold and silver dropped because??????????
Answer: Thieves.