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Bonds & Bullion "Safety Bid" As Stocks Give Up Santa Rally Gains

Tyler Durden's picture




 

As bulls stare unconsolable at today's "drop" in stocks... we suspect this is the thought running through their minds...

 

The North Koreans Win - A Red Day In Stocks!!

 

Driven by USDJPY weakness overnight...

 

By way of a rather stunning example of the "markets", today's 0.5% drop in the biggest in 2 weeks as stocks caught down to credit, energy, bond, and macro weakness...

Stocks gave yesterday's levitation back and then some... despite a small bounce at the open as usual... 3rd ugly close in a row...

 

The S&P 500 closed back below its 5-day moving average...

 

Giving up the Santa Rally gains...

 

Stocks catching down to Treasury yields...

 

As Treasury yields are now down at pre-FOMC levels...

 

Credit markets are less impressed with whatever Yellen did... HY is 16bps wider this week

 

Treasury yields overall fell today but bonds were sold after Europe closed amid thin liquidty...

 

The USD weakened today on the back of JPY and SEK strength...

 

Commodities all snapped higher around 8amET with PMs leading the way...

 

Oil trod water near 5.5 year lows as gold jumped after JPY's surge...

 

And then there's Civeo!!! but the oil drop is "priced in"

 

As after a 2.5% in Europe's Oil & Gas stocks, US Energy stocks are starting to realize Oil prices do matter after all...

 

Charts: Bloomberg

 

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Tue, 12/30/2014 - 17:12 | 5606544 knukles
knukles's picture

The Saudi's cutting the price of crude by 40% was/is the biggest Black Swan of Many, Many Years
And the Unintended Consequences and Repercussions are Not Even Yet Imagined.
You think the economy (US and World are weak...) y'ain't seen nuffin' yet, "folks"!

Tue, 12/30/2014 - 17:34 | 5606644 Jeff the Terrible
Jeff the Terrible's picture

0.4% is a crash. Tyler you are a fruity drama queen. That's what gets clicks right?

 

http://y2u.be/VI6tBwVjyOY

Tue, 12/30/2014 - 17:46 | 5606713 kaiserhoff
kaiserhoff's picture

Everyone in media is nervous now, if not panicked.  The revenue just isn't there.  Fox is in a pissing competition with Dish Network, and on a local level, the CBS affiliate is about to be cut off by a regional cable company. 

We are all getting better at avoiding advertising.  That changes everything.

Tue, 12/30/2014 - 18:18 | 5606847 Aaaarghh
Aaaarghh's picture

Just under 4 weeks for Jeff the .gov troll? worth listening to..

Tue, 12/30/2014 - 18:27 | 5606879 Save_America1st
Save_America1st's picture
Ted Butler:  The Perfect Crime

http://www.silverseek.com/commentary/perfect-crime-13944

 

How JP Morgan has probably accumulated at least 300 million ounces of physical silver...


Tue, 12/30/2014 - 18:01 | 5606787 FuzzyDunlop21
FuzzyDunlop21's picture

1) I am genuinely surprised anyday when the Fed allows there to be a red close so yea thats quite a crash

2) If you, in your infinite wisdom, deduced that this article is clickbait, why the fuck did you click it, Detective Dipshit?

Tue, 12/30/2014 - 20:08 | 5607306 fuu
fuu's picture

Without clicking on it he couldn't leave his fucking vegan cookbook spam.

Tue, 12/30/2014 - 22:01 | 5607684 Neverstopprintingme
Neverstopprintingme's picture

you realize that is tongue and cheek right.  anything red these days and the entire analyst community and financial news nimrods are confounded.  a year of no more than 3 reds days in a row will do that to you.  rest assured kool aid fanatics....we will see 18k tomorrow and possibly 18.5 on the manufactured claims number and then only more 7 more days until the fradulent december jobs number.  22 million new jobs created is the expectation.  We miss that number...great more QE....we hit it....great more QE.

Tue, 12/30/2014 - 17:35 | 5606647 Rainman
Rainman's picture

Sadly, most folks wealth is digits on a screen..... *poof* and it gone.

Tue, 12/30/2014 - 17:39 | 5606673 kaiserhoff
kaiserhoff's picture

Gas price is solidly under $2.00 here now, much more consistent in it's fall, and not at all correlated to futures.

This is somewhat led by cash and inventories.  Spooky, but at a retail level, they can't seem to move the product.

Tue, 12/30/2014 - 17:45 | 5606698 gcjohns1971
gcjohns1971's picture

I don't think so.

I suspect there is a whole flock of Black Swans out there.

If you accept that "Brave New World" and "1984" reflected the true values of oligarchical socialists, then they inarguably believe that economic and technological progress (because they are tied) can be halted in a state of stasis.

In fact, they cannot.  The various and many "Black Swans" are in fact predictable results of the economic order oligarchs pursue.  They are the cracks that inevitably appear in an untended economic foundation.

The foundation of survival pursuits is innovation. The foundation of production is the pursuit of survival.  The foundation of trade is production.  The foundation of economics is trade.

The Oligarchical socialists seek to freeze innovation for the purpose of freezing the economic heirarchy for the further purpose of perpetuating their power.

In doing so they necessarily separate humanity from survival.

To survive humanity must eternally progress.

Tue, 12/30/2014 - 18:08 | 5606802 oudinot
oudinot's picture

1971: Your comment is quite insightful, thank you very much.

Tue, 12/30/2014 - 18:43 | 5606923 SickDollar
SickDollar's picture

@knukles +100


Wed, 12/31/2014 - 01:20 | 5608126 tplink
tplink's picture

my roomate's half-sister makes $65 /hr on the computer . She has been without work for 7 months but last month her pay check was $14940 just working on the computer for a few hours. you could try this out... www.works3.com

Tue, 12/30/2014 - 17:13 | 5606546 TeamDepends
TeamDepends's picture

Gramma Yellen says, "finish your peas".

Tue, 12/30/2014 - 17:25 | 5606601 Hawkey Schtick
Hawkey Schtick's picture

The swings are getting more drastic. Up and down like a rodeo. Makes me wanna ride ole Yellen like a bull. Pull the gate and hold on for 8.

YEEEHHAAAAWWWW!!!!!

Tue, 12/30/2014 - 17:15 | 5606558 spinone
spinone's picture

Take it easy, the Dow is down 55.

Tue, 12/30/2014 - 17:18 | 5606568 monopoly
monopoly's picture

The S&P 500 closed back below its 5-day moving average......

Lets chat when the S&P 500 closes below its 200 DMA. Then we have something to discuss.

Tue, 12/30/2014 - 17:36 | 5606655 Keltner Channel Surf
Keltner Channel Surf's picture

Hmm . . . you mean, like what happened on Oct 13?  

Two days later, for the shorts, in Monopoly terms, it was "Go to Jail.  Go directly to Jail.  Do not pass Go. Do not collect $200"

Tue, 12/30/2014 - 17:20 | 5606574 dexter_morgan
dexter_morgan's picture

What would happen if China/Russia were able to convince NK to give up their nuclear arms programs and fall under the defensive umbrella of China/Russia instead.

Seems the threat to SK would pretty much be gone, no?

Tue, 12/30/2014 - 17:22 | 5606585 gcjohns1971
gcjohns1971's picture

Not really.

Seoul is within conventional artillery range of the DPRK.

No nukes required to flatten it with about 60 seconds notice (flight time of the incoming rounds from north of the Freedom Bridge).

Tue, 12/30/2014 - 17:43 | 5606688 MalteseFalcon
MalteseFalcon's picture

If SK has a single nook-e-r plant, then it is at risk for nook-e-r destruction.

Tue, 12/30/2014 - 17:34 | 5606648 omniversling
omniversling's picture

Covered in this expansively researched and very well summarised snapshot of the 'double helix' that China and RF have developed. Very very worthwhile reading (H/T Flying Wombat for the link yesterday):

http://thenewsdoctors.com/vineyard-of-the-saker-white-paper-the-china-russia-double-helix/

Tue, 12/30/2014 - 18:14 | 5606824 new game
new game's picture

very good read, lots of conjecture that has likelyhood of future reality. that said, they russka/chinka will be much better positioned than a hollowed out rotten log called mic/merica force dejure. we are here to help and liberate your resources...

the events unfolding are very telling of a downdraft that will suck the crome off your wallet...

Tue, 12/30/2014 - 17:38 | 5606667 kowalli
kowalli's picture

Im not sure that NK have their nuclear arms and this is not a bs from usa media

Tue, 12/30/2014 - 18:20 | 5606830 oudinot
oudinot's picture

morgan:  Actually, China uses N. Korea to shake the US's cage.

China supplies 2/3 of N. Korea's energy and food and they do it for two reasons:   1.  China and Korea have been at each other's throats for two thousand years; China  wants to keep the country divided so they are less of an opponent

2.  They don't want N. Korea to implode as their starving masses would migrate to China and cause chaos..

China controls N. Korea, period.

Tue, 12/30/2014 - 17:20 | 5606577 monopoly
monopoly's picture

We are all so used to the markets going up day after day that when it is down .4% we think it is crashing. The insanity of it all.

Tue, 12/30/2014 - 17:22 | 5606580 Hazlitt
Hazlitt's picture

"If you bought yourself one, or two, or maybe ten thousand stocks, it's okay; you can admit it."

Tue, 12/30/2014 - 17:28 | 5606611 F-Tipp
F-Tipp's picture

Your comment made me laugh. I have to watch this clip again now.

Tue, 12/30/2014 - 17:22 | 5606584 Truther
Truther's picture

Hold on to your pants folks. It won't be pretty.

Tue, 12/30/2014 - 17:26 | 5606592 Dr. Engali
Dr. Engali's picture

When A few thousand points vaporize off the Dow then I will stand up and take notice. Until then it's just business as usual. I do like the Princess Bride video though.

Tue, 12/30/2014 - 17:51 | 5606733 gcjohns1971
gcjohns1971's picture

No offense, but I think that is what Keynes meant with the comment that inflation steals in a way that not 1 in a million can distinguish.

What if the digits in the Dow remain the same, or even rise, but the real purchasing power in them has declined?

That has already happened over the last century.

 

BTW... what do you think mandatory contribution to myRA will do to the Dow in nominal terms, "falling tide" and all that?

Tue, 12/30/2014 - 17:24 | 5606594 Sudden Debt
Sudden Debt's picture

maybe time to buy those gold calls and dow puts :)

 

Tue, 12/30/2014 - 17:25 | 5606599 astoriajoe
astoriajoe's picture

Perhaps CVEO can convert to non-oilfield housing, because when this is all over, we will probably be happy to live in a converted, waterproof shipping container.

Tue, 12/30/2014 - 17:37 | 5606656 thepigman
thepigman's picture

And if you "like" your shipping container, you can "keep" your shipping container, so long as you pay your Obamacare premiums and add to the soaring GDP

Tue, 12/30/2014 - 17:29 | 5606616 deeply indebted
deeply indebted's picture

Is a Bullard worth more than a Yellen?

Tue, 12/30/2014 - 17:29 | 5606627 alexmark2013
alexmark2013's picture

Mkt now prices 17% probability of a #Grexit; massive increase over past 2mths as mkt was pricing virtually 0. (viaMS)

http://investmentwatchblog.com/mkt-now-prices-17-probability-of-a-grexit-massive-increase-over-past-2mths-as-mkt-was-pricing-virtually-0-viams/

Tue, 12/30/2014 - 17:42 | 5606685 jubber
jubber's picture

don't panic chaps the overnight Fed team is in, Dow back over 18k, & S&P Nas & Russell are all up, Gold back below $1200 

Tue, 12/30/2014 - 17:51 | 5606732 jubber
jubber's picture

Oops EU Commissioner today stated “We hope Greece remains in the eurozone”

Tue, 12/30/2014 - 17:51 | 5606735 Jim Shoesesta
Jim Shoesesta's picture

What morons continue to write these articles?  Just look at the charts. 

Tue, 12/30/2014 - 17:54 | 5606747 TaurusCanis
TaurusCanis's picture

The SPX weekly RSI is weakening, with it's channel trending down and converging....  regression channels are closing...  it only has a couple of more weeks before it breaks to the negative and will break through it's 20 and 50 ma in short time.... the 50sma is a solid bull/bear trend line. Then its a race to the bottom.

The retail margin load here is at unprecedented levels... and I expect the commercials, hedge funds, etc are heavily leveraged on cheap credit as well.  If the break has momentum, this could be a very, very ugly short squeeze.  SRTY would be the best play then.  It hit 550 in the 2011 correction and 1000 in the 2010.  Trading at 30 today.

Regards and good luck. 

Tue, 12/30/2014 - 20:09 | 5607307 jcaz
jcaz's picture

Huh?   Retail margin isn't at "unprecedented levels",   retail biz is pretty slow, actually.....   Regardless, if margin DOES break,  it doesn't cause a "short squeeze"-  shit gets sold off to cover margin-  prices go UP during a short squeeze, not down.

It's no mystery that cheap debt is the biggest problem-  it's what Tyler has been pointing out for weeks now, but thanks anyway.......

Tue, 12/30/2014 - 18:02 | 5606783 MrButtoMcFarty
MrButtoMcFarty's picture

Sell the paper.

Buy the physical.

Kill a bankster.

Happy New Year!

Tue, 12/30/2014 - 19:43 | 5607217 MrButtoMcFarty
MrButtoMcFarty's picture

I down voted you for posting link to a 2 week old Au chart.

If you are going to present yourself as an expert don't be an idgit.

Wed, 12/31/2014 - 01:51 | 5608162 bid the soldier...
bid the soldiers shoot's picture

dude says

 Stocks Give Up Santa Rally Gains

This "Santa Rally" began in March 2009 when the Dow was 6600.

What are you babbling about?

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