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"Buying Panic" Lifts Stocks Green Post-QE Amid Gold's Best Week Since Oct 2011

Tyler Durden's picture




 

Despite massive volatility and turmoil this week, today's bounce in crude and stocks is all anyone remembers... so!

 

But - in reality - it was total chaos...

  • Silver - best week since Aug 2013
  • Gold - best week since Oct 2011
  • WTI Crude - first positive week in last 8 weeks
  • S&P 500 - worst week in last 5 weeks
  • VIX - Highest weekly close since Dec 2012
  • Treasury Yields - 3rd weekly drop in a row to new record for 30Y
  • EURUSD - worst week since Jul 2012
  • CHFUSD - best week ever ever ever

Year-to-date... Silver and Gold the leaders (followed by bonds) with Stocks and Oil the laggards...

 

The week in stocks...

 

And an almost perfect roundtrip from yesterday's open...

 

And today's exuberant-fest thanks to fun-durr-mentals

 

Total buyingh panic rampfest today just managed to get stocks green post-QE...

 

Homebuilders were the week's biggest loser, Energy rebounded on oil price's dead cat bounce (despite Energy credit's record high closing spread at 1058bps)

 

Just as an FYI - the manipulation and tinkering is becoming so obvious and widespread as the following chart shows - average trade size of S&P 500 e-minis is now at a record low 2.7 contracts!!!! All machines all the time....

Treasury yields plunged on the week but today saw some bounce...

 

HY Credit notably decoupled from stocks early on but as the rampfest started so HY pulled higher too....

 

The USD closed the week notably higher to new 12 year highs - for the 5th week in a row...

 

CHF was up 15.25% on the week against the USD)

 

Despite the USD strength, gold and silver surged and oil levitated back to green for the first positive week in the last 8... (copper recovered its China crash)

 

Oil's bounce lifted energy stocks - AGAIN!! - but once again. it decoupled from credit

 

Charts: Bloomberg

 

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Fri, 01/16/2015 - 17:12 | 5671901 El Vaquero
El Vaquero's picture

He's trying to avoid the guillotine?

Fri, 01/16/2015 - 17:14 | 5671906 kliguy38
kliguy38's picture

Nahhh ......he just bot a bunch of guns and gold

Fri, 01/16/2015 - 17:28 | 5671966 max2205
max2205's picture

Back to the  3:30 ramps.....time to order that Lamborghini 

Fri, 01/16/2015 - 17:17 | 5671908 Dre4dwolf
Dre4dwolf's picture

LOL I READ THAT ARTICLE BEFORE AND THE FIRST THOUGHT IN MY HEAD WAS 

"Whats the catch?"

^^...

Im sure there is one.

Watching attorney general ban asset forfeiture is like watching a Charles Manson babysit and not do something horrible.

Maybe the guy woke up one morning, had an epiphony and realized what a steaming pile of shit the government he works for/with is...

Fri, 01/16/2015 - 17:19 | 5671926 El Vaquero
El Vaquero's picture

I don't think that is even a strong enough analogy.  More like watching Charles Manson risk his life to save that of a stranger.

Fri, 01/16/2015 - 17:22 | 5671935 Dre4dwolf
Dre4dwolf's picture

Its a head turner of an article headline thats for sure.

I read that , and was like http://frenchyincali.com/wp-content/uploads/2014/02/wtf-what-the-fuck-me...

Fri, 01/16/2015 - 17:27 | 5671961 saints51
saints51's picture

lol that is exactly what I said before I read your comment.

Fri, 01/16/2015 - 18:36 | 5672181 Greenskeeper_Carl
Greenskeeper_Carl's picture

guys, read the article again. It says no asset forfiture without EVIDENCE of a crime. It doesn't say CONVICTION of a crime. So, as long as they say they have 'evidence' your property was used in a commision of anything they consider to be a 'crime', they can still steal your shit. Ergo, that statement is completely meaningless, and is was just made to lull people into thinking they actually have rights again. There is the "catch" yall were looking for

Fri, 01/16/2015 - 17:25 | 5671955 kliguy38
kliguy38's picture

"Maybe the guy woke up one morning, had an epiphony and realized what a steaming pile of shit the government he works for/with is..."

 

umm lemmee think about that a second..........ummmm .....no..........besides psychopaths love steaming piles of shit.......they leave um everywhere they go......

Fri, 01/16/2015 - 18:14 | 5672128 seek
seek's picture

The only reason they'd do this is if not doing it puts something else that's much greater at risk.

There's been a lot of civil asset forfeiture exposes in the past few months, and they're turning up uglier and uglier "cases." I put that in quotes because most of them aren't even "cases" but just outright theft.

Because of those ugly cases and thefts, there's real movement on getting an outright ban on forfeitures without criminal convictions. That takes their ball away forever, and at that point they lose it for billionaire drug dealers along with completely innocent men cruising personal ads (seriously, Florida police were posting personal ads, and then saying they were under 18, and seizing cash from people that replied "no thank you," because if they replied they were attempting to communicate with a minor.)

So Holder could either take the ball away from some slack-jawed thugs busting lonely hearts, or he could lose the ability to grab a few billion from HSBC under threat of seizure. No brainer.

Fri, 01/16/2015 - 17:16 | 5671919 Dr. Engali
Dr. Engali's picture

They want it all for themselves.

Fri, 01/16/2015 - 17:24 | 5671945 Winston Churchill
Winston Churchill's picture

Bingo Doc.

The thugs are starting to eat each other.

Fri, 01/16/2015 - 17:54 | 5672081 prefan4200
prefan4200's picture

That link has to be from The Onion, makes no sense otherwise.  Why would Holder do something intelligent and constitutional like that?  It's completely out of character with his typical bullshit..... Invasion of the Body-snatchers redux???

Fri, 01/16/2015 - 17:11 | 5671886 Kaiser Sousa
Kaiser Sousa's picture

total fucking bullshit.

Fri, 01/16/2015 - 17:11 | 5671897 El Vaquero
El Vaquero's picture

Hey Yellen, are you sure that you torqued the lugnuts down on the bus?

Fri, 01/16/2015 - 18:09 | 5672113 Winston Churchill
Winston Churchill's picture

Sheared them right off, except for one per wheel.

Fri, 01/16/2015 - 17:13 | 5671904 agstacks
agstacks's picture

No one sneeze, please...

Fri, 01/16/2015 - 17:16 | 5671915 noben
noben's picture

"Gold - best week since Oct 2011"

Yeah, sure. If you measure Flow (Commissions!), not Price. Somebody's bias is showing.

Fri, 01/16/2015 - 17:17 | 5671917 Richard Chesler
Richard Chesler's picture

We squeezed some short folks.

 

Fri, 01/16/2015 - 17:20 | 5671918 Debtonation
Debtonation's picture

I can't believe the Swiss 10Y is negative, why not just buy gold?  I never thought I'd see a day where any bond yield was negative.  Unprecedented times we live in.

Fri, 01/16/2015 - 17:22 | 5671944 disabledvet
disabledvet's picture

Meanwhile Bankers flee to Brazil in record numbers...

Fri, 01/16/2015 - 17:22 | 5671941 Voice of Reason
Voice of Reason's picture

Tyler!  Thanks again for the summary.  PLEASE PLEASE talk about IYR!  What is the deal?

Fri, 01/16/2015 - 17:24 | 5671946 medium giraffe
medium giraffe's picture

wow. wtf?

Fri, 01/16/2015 - 17:22 | 5671942 techstrategy
techstrategy's picture

All options manipulation.   Just liquidate all financial assets for cash and gold.   Let those responsible hold all the return free risk.   Each and every day convert a few percent to half cash and half gold.   

Fri, 01/16/2015 - 17:22 | 5671943 medium giraffe
medium giraffe's picture

Panic buying melt up...  Things make a lot more sense since I turned my monitor upside down.

Fri, 01/16/2015 - 17:25 | 5671950 mayhem_korner
mayhem_korner's picture

 

 

OT - Anyone see the irony in those FCXM banner ads that say "start today with us" here on ZH?

Fri, 01/16/2015 - 17:30 | 5671959 medium giraffe
medium giraffe's picture

Jefferies, apparently.

Fri, 01/16/2015 - 17:49 | 5672001 max2205
max2205's picture

On what fucking planet would the SEC alow FXCM  to unhalt Friday after hours 

 

It's open... up 100%    fuck me

Fri, 01/16/2015 - 17:25 | 5671952 Son of Loki
Son of Loki's picture

"Is it safe?"

 

 

Fri, 01/16/2015 - 17:26 | 5671953 buzzsaw99
buzzsaw99's picture

td misspelled bitchez. tsk tsk. max pain bitchez.

Fri, 01/16/2015 - 17:27 | 5671960 Keltner Channel Surf
Keltner Channel Surf's picture

Head-scratching financial ‘truths’:  

a) Pundits said shorts are nervous holding over long weekends and would cover late in the day, their nervousness a natural consequence of potential losses that are theoretically unlimited.   Does this also assume all shorts lack a holiday calendar?  (e.g., why not cover Thursday, a big down day?)

b) Longs, on the other hand, are comfortable, despite currency turmoil, VIX increases, and bizarre Twitter hacks, in holding post-Friday, given their losses are, thankfully, limited to JUST their entire investment (?!)

Fri, 01/16/2015 - 17:31 | 5671982 saints51
saints51's picture

Try watching this shit show next to people who have no idea. It is some of the best entertainment.

Fri, 01/16/2015 - 18:48 | 5672230 Peak Finance
Peak Finance's picture

Dude, honestly,  I don't really think that any of us really have any idea.  We think we do but no one knows. 

Who thought oil would crash? (20,872,349,876,398 "peak oil" articles later)

Who though they would unpeg and cause currency carnage?

Why is going / silver ripping? After all these years? While USD is also rising?

How the fuck is this thing we call the market still working at all?

 

Fri, 01/16/2015 - 17:38 | 5672000 Xanthias
Xanthias's picture

Whatever.  My screen is a picture of panic: clear channel on the spoos initiated 12/5.  Expect more margin calls, bankruptcies, currency dislocations--unless dead cats can whipsaw, too.

Fri, 01/16/2015 - 17:42 | 5672019 Keltner Channel Surf
Keltner Channel Surf's picture

Yeah, my post was more tongue-in-cheek.  Not an expert on these things, but I assume it has to do with today's option expiration and the concept of "pinning", where open interest levels around various strike prices causes machine mayhem on the close.  For RUT, it appeared "someone" preferred the 50 DMA to the 200 (where it ended yesterday), and we swam against a few normally reliable technicals all day to get there (or at least close) by 3:55.

Fri, 01/16/2015 - 17:45 | 5672040 new game
new game's picture

last cat i shot, just would not die. it kept flopping around after repeated 20 ga. shots. one tough muthafucker.

don't recall any bouncing.

Fri, 01/16/2015 - 17:30 | 5671970 disabledvet
disabledvet's picture

I think the terrorist attacks all over Europe are a big deal.

 

Certainly they have been on the news a wee bit.

 

Cyprus, Ukraine, Libya...all big stories basically being ignored.

 

As long as you have no euro's you should be fine.

 

Anybody?

 

Chirp, chirp?

Fri, 01/16/2015 - 17:30 | 5671974 economists_do_i...
economists_do_it_with_models's picture

Don't tell me...  Another Hindenburg moment, right?  lol  63rd time or whatever will hopefully be a charm.

Fri, 01/16/2015 - 17:34 | 5671994 wmbz
wmbz's picture

Who the hell shot the monkey? That little bastard has been trained to hammer the fuck out of Au&Ag.

WTF!

 

Fri, 01/16/2015 - 17:43 | 5672033 wmbz
wmbz's picture

It's obviously the smart&savy infestors going all in... It's Friday don't want to miss blast off next week!

FUBAR!

Fri, 01/16/2015 - 17:59 | 5672092 davidalan1
davidalan1's picture

OMGGG, The charts are great, but the video is the BOMB...hahahahhahaha fucking awesome...so apropou

Fri, 01/16/2015 - 18:04 | 5672106 homebody
homebody's picture

But But consumer sentiment is at all time highs

Fri, 01/16/2015 - 21:47 | 5672656 Geruda
Geruda's picture

 

 

This quote is from Jon Nadler back in June 2012.   Cracks me up how so many haters scoffed at his insight into the behavior of gold just because he said things they didn't want to hear.   Ridicule and scorn from the greasy necked fatasses who brag how they'll back up the truck when the price goes down but when the time comes they fill their trucks with what starts leaking from their breeches as the price drops.      Seems like there is no one like him around who tries to back up what he foresees with intelligent reasoning based on fundamentals he explains.

 

Anyone who thinks they've benefited by the disappearance of a gold contrarian who used reasoning must have fallen under the wheels of a ruttabaga wagon.

 

* Just my opinion, please don't mistakenly think my viewpoint is part of a consensus.  Well, at least not here it isn't.

 

“I think $1,200-$1,300 could be in the cards [for the price of gold] inside less than a year,” he speculated.

 

http://etfdailynews.com/2012/06/28/jon-nadler-the-gold-bugs-have-it-all-...

 

Sat, 01/17/2015 - 02:52 | 5673234 rex-lacrymarum
rex-lacrymarum's picture

Since he was a perma-bear, he had to get one right at some point, stopped clock style. The fact that he actually doesn't understand the gold market was revealed many times. Just to name an example, if one asserts that one can say anything meaningful about the direction of gold prices by invoking jewelry sales and mine supply, it is clear that one is simply clueless. Conclusion: Nadler, was, and likely remains, clueless. That one of his many bearish predictions (uttered with great regularity all the way up from $650 to $1900) finally, by sheer coincidence, turned out to be in the ballpark, does not disprove his utter cluelessness about the gold market.

Sat, 01/17/2015 - 17:46 | 5674633 Geruda
Geruda's picture

I can't really disagree with you too strongly because I was into gold a couple years before I happened to start reading him.   By then gold had almost reached the top and everything he wrote was more reliable than what a lot of idiots were proclaiming.

 

There is no way he can be cluesless.  It's possible he draws incorrect conclusions from the data he considers but he is definitely not clueless about the data itself.

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