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Draghi-geddon Collapses Euro & Crushes Crude; Stocks Soar But Bonds & Bullion Bid
There's only one clip that seemed to sum up today's trillion dollar printfest exuberance...
But it wasn't all shits and giggles... inflationists may have been disappointed by only a 3bps jump in 5Y5Y Fwd Euro inflation expectations, weakness in European sovereigns, a tumble in US Treasury yields, and a plunge in crude oil...
For a few minutes there, everything was not awesome... but stocks staged a late-day panic-buying "everything is awesome" melt-up (on no new catalyst at that point) moving into the green year-to-date to "prove" central planners have it all worked out...
As cash indices gapped open higher, retraced to fill the gap - ripped to the European close - stabilized - then melted upo in the afternoon on the back of JPY weakness
Which lifted stocks into the green year-to-date... But The Dow lost Green right at the close
Financials were the day's big winners in stocks (even though the yield curve flattened even more, and credit markets - which did rally today - remain flashing drastically red). Energy stocks rallied 0.4% even as crude oil crashed 4-5%
USDJPY was fully in charge of stocks... (as JPY and EUR battled for shittiest currency in the world)
EURUSD was baumgartnered... almost 300 pip drop
Which smashed the USD 1.5% higher... its biggest single-day rise in 18 months
To new 11-year highs...
But the USD strength did not affect gold or silver which surged post-ECBQE (as copper and crude were clubbed)... with gold closing above $1300 at 5-month highs
With crude crashing to a $45 handle after QE (USD strength) and EIA inventory build...
Treasury yields saw a massive swing - with 30Y dumping 15bps after the ECB QE news before leaking back higher...
Quite a decoupling from stocks...
Rather oddly, Russian stocks soared today... despite the renewed carnage in crude oil... (after tracking in a highly correlated manner for days)
Year-to-date, Silver and Gold are the major winners, stocks now unch and oil remains the biggest loser still..
Charts: Bloomberg
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At least this C/B shitshow has crossed the APEX of insanity, and we can finally see a few cards.
The Baltic Dry Index was up 17 today, and up 30 in two days. CNBC tells me that BDI is a leading indicator. So everything IS in fact awesome.
P.S. Never mind that the BDI trend line is down. Draghi is still some kind of awesome.
Gosh... iShares 20+, PHYS and PSLV, 3 of my largest holdings!
Everything is fine, never-mind QE and NIRP 4EVA. They are like the NSA, just pretend like they don't exist.
Now go get front-runned buying moar stawks and watch some CNBC cheerleading shills while you're at it. It'll make you feel better.
Worry not, Bernank has your back, we'll keep that bullion bid low so Yellen et al can accumulate before the great euphoric upside smash...
OBAMA LIVE ON YOUTUBE STARTS IN 5 MINS!!!! I CAN'T WAIT!!!
https://www.youtube.com/watch?v=GbR6iQ62v9k&feature=inp-lt-yti-01
I guess "get fucking used to it" should apply. It seems that if you are in an awesome position if you own a ton of equity assets and it seems you are in an awesome position if you are in debt up to your eyeballs with no income. Why... because some fucking asshole is always gonna bail you out. If you own a modest amount of assets and have minimal debt... bend the fuck over and pay for everyone else.
SSShhhhhh......every time I mention that the BDI is closing in on its all time low the fucking thing takes off.
BDI is a trailing indicator.
The Baltic Dry Index is widely recognized as "trailing indicator" for growth.
Educate before you junk> Understanding the Baltic Dry Index
You're 'on fire' today YC ~ keep it going! :-)
BDI is a solid trailing indicator
a more time sensitive indicator might be
the capsize rate of the zero hedge
boating with bullion armada...
BDI probably jumped on hopes that they would need to ship boatloads of money somewher, then realized it was all imaginary e-money and didnt need shipping.
.
Wait.....ECB announces trillion euro QE and the Euro loses value and PMs jump...but when the Fed prints trillions for years the dollar gains strength and Pms get crushed.
What am I missing?
The red pill.
Unfortunately I took it years ago and now I spend my life in this dark, dirty wasteland running from vampire squids and counting my silver. Thanks a lot
could be worse
you could be counting
federal reserve notes...
Buy a boat.
The carry trade is what is causing this. All those trillions were loaned out as free money. Invested in Oil and other sure-thing commodities. Now all the free money loans are coming due.
currency war race to the bottom.
first russia
swiss lost last week
euro full power ahade- si this leg down to 0,75?
imagen the party in davos tonight?
and wonder who will lost first becouse oil price?
russian lower income
or US CLO market-
"At least this C/B shitshow has crossed the APEX of insanity, and we can finally see a few cards."
+1 YC [summary of the day award]
It's not the fall that kills you... It's the sudden stop.
so true!
ban sudden stops..
Now we're back to jacking up NFLX, TSLA, AMZN, CMG, all of the bubble stocks. What can possibly go wrong?
LA Times: Did Pope flash ‘devil’s sign’?http://tinyurl.com/mpzzxkv
nice how they shaved 15 cents off the phony paper price of Silver in the last 30 minutes of fraud in NY...
http://www.livecharts.co.uk/MarketCharts/silver.php
and how trhey tried to drive the phony paper price of Gold down below 1300 all fucking day...
http://www.livecharts.co.uk/MarketCharts/gold.php
yeah...right
I know you guys are happy with your phyz, but this is a fun market!
all u have to do is follow the up-trail on $ and S&P...its boom times in doomer town!
Tha bluez is mah bizness, an' bizness is GOOD.
Dupe, sorry.
I'll use this space to suggest a break with the divine Etta James.
https://www.youtube.com/watch?v=Yi0_uOPKtaA
Free Unicorns for everyone.......
unicorn
ate my CDO's
They take turns in flooding the markets, they can continue for a another hundred years or more.
Unless China depegs.
Which they will once they have all the 4 aces they need: NDB/AIIB, Petroyuan, lots of gold and a strong army.
C'mon ZH lets have the second installment of Gail's energy and money speil.
This Draghi put and Hells, Bells and Jezebels fall out is getting to be stale stuff.
Hope you all are not surprised. Just keep stackin and packin in the meantime.
joyflations around the corner
late day viagra bump
I think we're saved. Are we saved? It feels like we're saved. Time to buy with both hands.
I think we at the edge and we can see and touch space, one step to freefall
But my both hands are busy holding something warm and round.
But my both hands are busy holding something warm and round.
So what's it like having one huge testicle??
Hayek sings Talking Heads karaoke:
Well, we don’t know where we're goin'
But we don't like where we've been
And we're like little children
Bankers know what we want
So QE is certain
Give them rope to hang us out
We're on the Road to Serfdom
Come on inside
Central-planned bus to nowhere
Now it’s worldwide
http://www.reuters.com/article/2015/01/12/us-oil-tanks-analysis-idUSKBN0...
Im looking at the Australian $ selloff and laughing. AAA+ rated, decent macro numbers and somehow banks think the RBA is going to drop rates in February.
Why would you waste your most important policy tool when your curency is selling off on some delusional banksters outdated terms of trade values?
Said it many times, but they rig it on these days so the MSM can say, "markets liked the decision." The "markets" end up telling people that everything is copacetic. It's all a fucking circle jerk.
Oh, and I almost forgot, to everyone in Davos: Fuck you.
yep ... trial balloon yesterday was for 50 billion/month ... so up it a bit ... and voila ... a "beat" ... markets soar
The Dom Perignon flows in Davos as the celebrants smugly congratulate themselves on another great day, and raise their glasses to toast the many greater days to come. Nothing can stop them now.
I'm still not sure how the policy move of the ECB, which is to weaken the euro, fits into their growth plans when their currency is already weak.
THE EURO IS DEAD, LONG LIVE THE EURO
Their long term goal (whatever timeline) is to have a ONE world currency, think SDR's.
The SDR is a basket of currency. If the currency in the basket has no value how much value can the SDR have?
Globalists would love for the USD to take the blame.
Global Reserve Currency, however, is the culprit for this Global Depression. Watch the banking & MIC - via the MSM of course - call for the destruction of the USD to make way for a new GRC, which of course would buy a little more time as long as enough of the peasantry buys it. Maybe the US peasants can lose their sovereignty as punishment for the USD - all in the name of justice, of course. Then the USA can be the latest country "saved" (that's MSM for "ruined") by an IMF bailout.
Give American peasants a brand-new national scrip, not subject to any constitution, that can be devalued over and over again. Perps punished, problem fixed, SDR hats for the entire MSM reporting team!
Still shaking my head at the sheer insanity of giving ANY set of banksters the power to issue global scrip.
guess they want it as weak as possible to stimulate exports. Also to fight deflation. So this will hurt US exports, so the US has to come back at some point and do QE5 (I lost track). And then ECB does more QE, ad infinitum... and all for naught.
That's been the script all along [peppered with periodic doses of 'histrionics']. Wake me when we get to QE18 & spare me the intermittent buzz
- The SOTU [I slept thru that one]
- The Superbowl
- American Idol Season Premiere
- The Grammys
- The Daytona 500
- The Oscars
- The Masters
- Blood Moons & shit
- Boston Marathon false flag bombing rememberances
- The Masters
- The 12th killing of Oasma Bin Laden rememberances
- The Kentucky Derby
- The Champions League Finals
- Memorial Day Weekend
Hell ~ That ought to get us thru until summer at least. If it's not enough, I'm sure Kate Middleton could pop out another lizard, or Kim & Kanye could do a sex tape.
You seriously think China will play along?
and the winner by a quaddrillion is(drum roll assending) JAPAN; they are there-fiat saturation, diminishing returns to its' intrinsic value. but, hold on, a lap back is the euro, with an economy that can start exporting, but to whom? russia-haha, usa? china-ah that's it...
com-on yeller you have been one uped, pull the real numbers out and get with it...
What growth plan?
(Guys, you just don't understand Europe, never have.)
So much for that "grow US exports" goal. Its war, war I say....between Toyota and BMW. Oh, it is lovely to sit in Calif and watch them fight over us. Mr. Musk what say you? Is the coolness factor enough to stave off a strong Dollar and cheap gasoline?
plus US energy capex will collapse in 2015
sticking with my "US recession start no later than Q1 2015" call
All in the fundamentals. Makes textbook sense to this idiot. BTFD, but shit where is the dip?
Martin armstrong just wrote" look out the euro. Tomorrow"
We bamboozled some folks.....
Interesting considereding it was all "priced in."
Every inflation protection racket soared today (with "unreal estate" STILL going up to beat the band.)
Sheldon Silver finally got busted...day after the most corrupt political class in US History had their little pow-wow even.
Still no word from the President who's probably on the 19th hole right now "letting it sink in.". Not that the most corrupt leadership in US history is stepping down anytime soon.
Oh, well. " Such is bizness" as they say. No wonder we haven't gotten a single investment dollar in this State in over sixty years.
Nor will we for the next sixty.
I do feel bad for Chi-town. Great City. Some guy named Pepe or something is going to crush Rahmbo apparently.
There's a new central bank in town
http://www.nytimes.com/2015/01/23/world/africa/libyan-fighters-seize-ben...
Where are the Greek errections? Greek errections will certainly drive the markets to new all time highs!!!
Where are the Greek erections? Greek erections will certainly drive the markets to new all time highs!!!
Should I be worried as a European citizen, now that Draghi just inflated my 6000 year old (barbarous) bubble?
Who cares about EURUSD drop? 3Q in US will be interesting, then the US multi nat will care.
Doesn't anyone know the inverse relationship between bond price and yield?
US bonds sold off all day. They were not bid higher.
Yah yah yah you are right.
BUT,
a 0.36% loss on TLT versus a 26.01% gain on 20+ year treasuries over the last 12 months (versus +1.88% gain in RUT 2000 over 12 months)
ain't much. Just say'in
"You ain't much fun since I quit drinkin' http://www.metrolyrics.com/you-aint-much-fun-lyrics-toby-keith.html
The dollar, the best horse at the glue factory.
... why euro is pissing down the toilet ... because european ... (you're peein ... :)
Is it going down?
https://www.youtube.com/watch?v=90HUOD5b8EI
There is so much paper it reminds me of VE day parade down 5 th ave. Confetti just as useful as paper currency.
Star Wars parody for Central Banks: May the farce be with you.
When 1% control all the wealth through about 16 corporations this is what you get, a fucking fantasy land. I read yesterday 50% of the euro workers are on anti-depressants, Obama would be proud, sooo much hope for the future considering they have amassed so much debt and enslaved the entire planet, including all future generations. So what do they do? print more debt? so they can steal more money? wake up sheep.
dup
Very painful laugh.
Wish you had done this one year ago instead of now!
I opened the account for her on her 10th birthday. Her Mother(my sister) is a tree hugger. I felt it prudent to teach her the value of money.