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ClusterF'ed: Bonds & Bullion Pumped While Stocks & Dollar Dumped

Tyler Durden's picture




 

Seemed appropriate...

 

Let's start with a quick intraday across the major asset classes...

 

Surprise! Volume's back...

 

Quite a day for stocks... Something changed today!! No follow through on a post Fed pump...

 

Stocks on the week have been wild...

 

With all major cash indices red on the week...

 

Energy stocks atrting to catch down to reality...

 

VIX crashed to unchanged on the FOMC minutes only to rip back higher to 15...

 

Who could have seen this coming?

 

This is starting to worry us... Financials CDS is really starting to decouple...

 

The Treasury Complex was a mess - an inflation spike in yields after the CPI print, followed by a rally as stock dumped.. then a spike in yields on the leaked minutes followed by an aggressive bid...

 

The US Dollar held gains after the CPI print (after its flash crash) but started to wilt into the European close. The leaked minutes saw an itial pop then a big dump in the dollar (note the strength all day in Swissy)...

 

Commodities were very mixed. Silver screamed higher on the day and gold pushed on to new 1-month highs as Crude and Copper were crushed...

 

The October WTI contract was glued at the $40/$41 barrier intop the close after collapsing 4.7% on the day - its biggest drop in 7 weeks and lowest since March 2009 (when the Fed initiated QE1)

 

And Copper broke its 15-year trendline...

 

We leave you with the following from a St. Louis Fed vice President:

"A Taylor-rule central banker may be convinced that lowering the central bank's nominal interest rate target will increase inflation. This can lead to a situation in which the central banker becomes permanently trapped in ZIRP."

On that note...

Charts: Bloomberg

 

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Wed, 08/19/2015 - 16:11 | 6444952 SSRI Junkie
SSRI Junkie's picture

the yahoo charts looked like a shark fin trying to penetrate the surface

 

https://finance.yahoo.com/

Wed, 08/19/2015 - 17:02 | 6445129 El Oregonian
El Oregonian's picture

Carnage and blood in the water. All the while the FEDs are still trying to inflate their life raft. da-da-da-dadadadada....

Wed, 08/19/2015 - 17:32 | 6445201 lordylord2
lordylord2's picture

Tyler must be reading my comments. I made the Animal House "All is well" reference yesterday. 

Wed, 08/19/2015 - 18:10 | 6445281 Dave Thomas
Dave Thomas's picture

Where the deer at?

Wed, 08/19/2015 - 18:36 | 6445336 MagicHandPuppet
MagicHandPuppet's picture

Dear Plunge Protection Team,

Please step in and do your thing.  It's OK if you wait a week or so until you bring the price of gold back down as I won't be ready to make that big shiny purchase until next Friday anyhow.  Oh, and please really smash silver down... I'd really like to back the truck up, if you know what I mean ;)

Thank you.

Sincerely,
Your Secret Admirer 

Wed, 08/19/2015 - 20:23 | 6445599 FreedomGuy
FreedomGuy's picture

Official government policy is that stocks will only go up. Bonds will only go down. The temperature of the earth will be carefully set and night will be banished as unproductive.

Wed, 08/19/2015 - 16:11 | 6444955 Traderone
Traderone's picture

Wow, and I mean WOW. All the way back to last nights close and then dumps nearly 30 handles, how can you not love this shit!

 

Wed, 08/19/2015 - 16:35 | 6445054 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

TIME FOR YELLENS VICTORY LAP, quick before it falls apart!

 

http://www.cnbc.com/2015/08/19/janet-yellen-please-take-your-victory-lap...

Wed, 08/19/2015 - 16:58 | 6445119 Squid-puppets a...
Squid-puppets a-go-go's picture

and there's the payoff... silver ...but conspicuously not gold (cough jpm cough) dumped yesterday, just prior to a bearing Fed release.

We need an Investig- ahhh who am i kiddin.

Wed, 08/19/2015 - 16:15 | 6444970 SillySalesmanQu...
SillySalesmanQuestion's picture

This is the biggest FUBAR, WABOB Cluster Fuck of a market I've ever seen.

Wed, 08/19/2015 - 16:24 | 6445010 Rainman
Rainman's picture

Good thing USSA won't crack down on corruption like the Chinese Commies .... or things could be much worse.

Wed, 08/19/2015 - 16:30 | 6445035 Mintcoin
Mintcoin's picture

The 'chop' before the storm. (Storm is getting very close)

Wed, 08/19/2015 - 17:47 | 6445238 geno-econ
geno-econ's picture

Brilliant-----Fed will point to tropical storm forming in Atlantic threatening to become hurricane as reason for no interest rate increase in Sept..   Obviously, seven years of QE and ZIRP are working,  if it wasn;t for that damn storm.

Wed, 08/19/2015 - 18:34 | 6445334 willwork4food
willwork4food's picture

What? That silly little thing? They forcast little development. Seems to me a monster storm hitting would give them a good alibi.

 

Wed, 08/19/2015 - 16:16 | 6444976 Bay of Pigs
Bay of Pigs's picture

When gold and silver scream higher and stay there, we'll know the shitstorm is upon us.

Wonder what's going on at Dooshe Bank these days?

Wed, 08/19/2015 - 16:28 | 6445024 ebworthen
ebworthen's picture

Yes, and the steady collapse in Dr. Copper and Energy.

Joe Labologna still showing his fugly pate on CNBC?

Wed, 08/19/2015 - 16:32 | 6445046 Dog Will Hunt
Dog Will Hunt's picture

Agreed.

 

Off topic: next time you're over at SD, try and bring that Blo Pony guy back here with you.  I'd love to see how that shit goes down in the big leagues.   

Wed, 08/19/2015 - 16:19 | 6444985 Latitude25
Latitude25's picture

40% dollar devaluation WRT gold coming in 3.....2......1

Wed, 08/19/2015 - 16:20 | 6444994 Charles Nelson ...
Charles Nelson Reilly's picture

that's a ways off.  That is the central banks last play in the playbook to get their desired inlation.

Wed, 08/19/2015 - 16:22 | 6445006 Latitude25
Latitude25's picture

OK lets's give it a few days.

Wed, 08/19/2015 - 16:49 | 6445093 cpnscarlet
cpnscarlet's picture

And that is just after the helicopter drop to all the "little people".

Wed, 08/19/2015 - 17:04 | 6445142 Latitude25
Latitude25's picture

Yeah where's my helicopter drop?  I want to help Japan and buy a new Toyota.

Wed, 08/19/2015 - 16:19 | 6444987 Keltner Channel Surf
Keltner Channel Surf's picture

***As sung by Stanley Fischer and Janet Yellen

“I Taught You Babe”          from    "I Got You Babe"               by Sonny & Cher

{Yellen}  They say we're dumb and we don't know
We won't find out until we leave Zero
{Fischer}  Well I suspect all that's true
'Cause you taught me, and baby I taught you

Babe, I taught you babe, I taught you babe

{Janet}  They say that doves can’t pay the rent
‘Cause nothing’s earned, the money’s all been printed
{Stan}  I guess so, but we don’t have any pot
So I’ll check to see what other drugs we’ve got

Babe, I taught you babe, I taught you babe

{Stan}  I felt empowered back last spring
I got you to bear tapering
{Janet} And now I’m sad, market’s down
But if I get scared, QE’s always around

{Janet}  Don't let them say “too low too long”
'Cause I don't care, with ZIRP I can't go wrong
{Stan}  Then merge your dovish plan with mine
There ain’t no hill the S&P can’t climb

Babe, I taught you babe, I taught you babe

{Stan}    I taught you to blunt demand     {Janet}   I let our balance sheet expand
{Stan}    I got you to talk for me             {Janet}   I got all the hawks with me
{Stan}    I taught you to diss the Right     {Janet}   I taught you to hold rates tight
{Stan}    I got ZIRP, I won't let go           {Janet}    I taught you to love Zero

I taught you babe

Wed, 08/19/2015 - 16:24 | 6445012 Traderone
Traderone's picture

A joy to read/sing and thank you. Riders on the storm last friday was one of your best yet if not the best.

Wed, 08/19/2015 - 16:29 | 6445032 Keltner Channel Surf
Keltner Channel Surf's picture

Thanks, you must mean "Light My Fire", Yellen ones are always fun to write (hope you avoided that big post-FOMC spike today, but I'll bet that, like me, you don't trade much after 1:00 on FOMC days)

Wed, 08/19/2015 - 16:46 | 6445082 HowdyDoody
HowdyDoody's picture

Goldman could do a cover version "I scammed you, babe"

Wed, 08/19/2015 - 17:09 | 6445155 Traderone
Traderone's picture

Yes 'Light my Fire' apologies. I actually shorted it near the high and let a trailer run to VWAP,  a great day.

Wed, 08/19/2015 - 17:00 | 6445128 Berspankme
Berspankme's picture

a masterpiece

Wed, 08/19/2015 - 16:20 | 6444992 zrussell
zrussell's picture

I bet the HFT server uprocessors are still red hot!

Wed, 08/19/2015 - 16:22 | 6444997 ebworthen
ebworthen's picture

Baffle 'em with Bullshit, Lie, Confuse, Leak, Obfuscate, and Print Like a Mad Hatter all in full force!

Wed, 08/19/2015 - 16:25 | 6445017 SSRI Junkie
SSRI Junkie's picture

the fed did their job. they butchered the shorts

Wed, 08/19/2015 - 17:00 | 6445127 MalteseFalcon
MalteseFalcon's picture

Exactly. If the market has to crash, the FED will still punish the shorts all the way down.

Wed, 08/19/2015 - 16:25 | 6445018 buzzsaw99
buzzsaw99's picture

free markets ain't free (or markets for that matter) bitchez

Wed, 08/19/2015 - 16:29 | 6445034 Skateboarder
Skateboarder's picture

Free Mock-it.... get it? The mockery is free... well, kinda - free for them. We're paying them to be mocked.

Wed, 08/19/2015 - 17:30 | 6445198 TeamDepends
TeamDepends's picture

Speaking of Mawthas Vineyud, have you seen the pics of Barry and Wild Bill Clinton playing golf? Holy crap, if looks could kill we would have President Biden being sworn in by now.

Wed, 08/19/2015 - 17:56 | 6445259 Wahooo
Wahooo's picture

Soon we'll have to send our soldiers into another nation to defend our precious free markets.

Wed, 08/19/2015 - 16:26 | 6445020 wmbz
wmbz's picture

Jack Yellen may need to dig up 'Ol Al Greaspan, let him stear for a while. His bullshit was better than his bullshit, plus he was prettier!

 

This some fucked shit going on now! Throw on some foul weather gear!

Wed, 08/19/2015 - 16:35 | 6445055 Chuck Knoblauch
Chuck Knoblauch's picture

Goldman is processing the new line of bullshit.

Please hold on.....

Wed, 08/19/2015 - 16:39 | 6445065 Rainman
Rainman's picture

Anybody been knifecatching oil ?

Wed, 08/19/2015 - 16:58 | 6445120 Manipuflation
Manipuflation's picture

Funny you ask.  I was thinking the same thing.  I would like to buy one actual barrel of crude for my living room decor.  I am guessing that buying a single barrel of crude is not easy to do.  I would pay cash though.

That would be a great conversation starter.   

Wed, 08/19/2015 - 17:02 | 6445134 Latitude25
Latitude25's picture

Yeah but it stinks like crap

Wed, 08/19/2015 - 17:31 | 6445200 Manipuflation
Manipuflation's picture

OK, maybe in my garage right next to my Harleys?

Wed, 08/19/2015 - 18:19 | 6445306 GMadScientist
GMadScientist's picture

Just buy a barrel and put it underneath your Harleys.

Wed, 08/19/2015 - 22:30 | 6445914 Manipuflation
Manipuflation's picture

No, my bikes are much newer and weren't made by AMF.  I got the joke though.  I see a lot of young men riding crotchrockets who think they are special.  I can't beat them on a straightaway but I can ride corners.  Full throttle is common.  I should get a gopro camera and show you fuckers how I ride.(or die)  Naw, it wouldn't work.  There is no way to explain running a Harley over 100 mph chasing a LS Corvette and catching it on the curves.  The Corvette had to go up to at least 160 mph or so on a five mile straight shot.  Harleys are not built for that.  I fell behind and I rode hard.  That was impressive for that Corvette.  Corvettes can't handle corners/curves like my motorcycles can though either.  I ended up on his tail and he gave up but we waved to each other and smiled.  

Wed, 08/19/2015 - 18:19 | 6445307 Dave Thomas
Dave Thomas's picture

Nah get your wife to put a doyle on the drum then a nice potporutti display on it.

Wed, 08/19/2015 - 16:49 | 6445091 HardHatBanker
HardHatBanker's picture

They are going to raise rates.... in 2025

Wed, 08/19/2015 - 17:36 | 6445214 Infinite QE
Infinite QE's picture

I heard 2112.

Wed, 08/19/2015 - 16:52 | 6445095 Manipuflation
Manipuflation's picture

Is it just me or did we just kick the doors off the market today?  That was not the normal trading day.  I made nomimal gains on everything for once in my life.  Oh wait, I am not selling PMs so I made nothing.  Oil tanks out though but what can you do?  Capital flight into "safe havens" is all I saw.  

Are the rats finally jumping off the sinking ship? 

Wed, 08/19/2015 - 16:53 | 6445108 Hitlery_4_Dictator
Wed, 08/19/2015 - 17:02 | 6445133 Manipuflation
Manipuflation's picture

Link not working here.  I might have some virus from reading about Ashley Birditzmanstein's hookup site.  I will take your word for it.

Wed, 08/19/2015 - 17:58 | 6445264 seek
seek's picture

The rats are jumping. Anyone with early access #s is seeing the exact same thing: 2008 redux.

I'm going to go ahead and embarrass myself and make some calls. I'll probably be wrong but I'll earn me bragging rights if not:

AU will be above $1230 sometime between now and six weeks from now (let's call it 10/7.) Not saying it stays there, just that it goes over. If we copy '08 it will spike then plunge back to 1100 or below.

One or more major banks (my bets are on a European one) goes Bear Sterns or Lehman on us (most likely Lehman and gets bought/bailed out after the news hits) within six weeks.

No rate hikes, and in spite of QE not working, QE4 or something similar will happen -- but probably outside of the six week time frame. If I had to gamble, I would bet we see a Bush-type stimulus "free money that's really your taxes" check between now and Christmas 2015.

Wed, 08/19/2015 - 18:43 | 6445353 willwork4food
willwork4food's picture

 I would bet we see a Bush-type stimulus "free money that's really your taxes" check between now and Christmas 2015.

From your lips to God's ears! But even better- some good & large job contracts!

Wed, 08/19/2015 - 19:09 | 6445399 Manipuflation
Manipuflation's picture

The rats have to jump at some point.  That day is coming.

Wed, 08/19/2015 - 16:53 | 6445107 WTFRLY
WTFRLY's picture

Good. Fuck this shit, it's about time.

Wed, 08/19/2015 - 17:02 | 6445135 ivana
ivana's picture

idiot central planners will now lower usd down down down to "boost" exporters and S&P ... of course it will not help

Wed, 08/19/2015 - 17:09 | 6445156 Manipuflation
Manipuflation's picture

It is going to be interesting.  I bet on physical everything and have ZERO money in market paper anymore.  I just have to hold on for now.

Wed, 08/19/2015 - 17:12 | 6445161 Chupacabra-322
Chupacabra-322's picture

Looks like EKG Vital Signs. "We're losing him (the Ponzi)! We're losing him. Clear! Zap! QE. "Ponzi's flat lined Doctor." "We've lost him."

Wed, 08/19/2015 - 17:32 | 6445203 gwar5
gwar5's picture

Animal House came out my Freshman year at college. Good times. Toga! Toga! Toga! Kevin Bacon was just a baby too.

Wed, 08/19/2015 - 17:34 | 6445206 Atomizer
Atomizer's picture

Typical scumbags. We left on the 13th to rent our place in HHI. We knew exactly what the 30k upgrade condition of villa was. We arrived yesterday. A fucking hole in the wall, broken electric wall socket, and deep scratches in second bedroom. We replaced blue carpet with engineering wood. 50 year warranty. 

That cunt is not going to get his damage refund back. We have so many good reviews. He was such an asshole, I grabed the phone a told him to shut the fuck up. This is not CNN talking over my wife. They also broke dishes. We don't care. 

Any landlord Payment refund for reservation HA-NK45BP sent to Ryan Benskin: Aug 13 through 18 - VRBO.com #718346. Whoever gets a call from him. Run, he is a IT scumbag. Will distroy your place. A wedding party of 6 who had to go to Shipyard across the street keep the our place immaculate. 

http://www.vrbo.com/718346

Wed, 08/19/2015 - 17:52 | 6445251 Wahooo
Wahooo's picture

You must learn: when guys get drunk, they break stuff. When women get get drunk, they throw up and then fall asleep.

Wed, 08/19/2015 - 19:20 | 6445422 Atomizer
Atomizer's picture

We own ten properties. We seldom inccurr a problem, $1500/week. This renter called me. He asked how he could install a secondary device on the 50" TV. Wanted me to walk him threw back connections. I told him you have three TV's and free Internet access under my guest password. 

He fucked up my place. Screw him. I will make his life miserable. He is like Hillary Clinton, denied damaging my place that I stayed at hours of handing over on August 13, 2015. I've been at Charleston, SC HQ since the 18th. Keep your daily rate at $150/night. Problems still occur. They will be red flags as damage control. Raise it to $500. 

You're VRBO black listed Ryan Benskin. Fuck off. Never welcomed to stay at our place again. Too many good reviews at our place. 

 

Wed, 08/19/2015 - 17:49 | 6445231 PrimalScream
PrimalScream's picture

The STORY is the drop in the US dollar today (BUT the rising trendline is not broken yet).

And along with that - the rapid rise in rates on junk bonds.

RISK ... is starting to take a bite into the economy.

Wed, 08/19/2015 - 18:00 | 6445269 Manipuflation
Manipuflation's picture

Here you go.  I almost do want to go do a fight club scene.  I am getting old though.  I have a fake front tooth from that one time I lost.  You can't win them all. 

Don't the douchebags call that felony assault now?  Halfway in the video the dude got dropped because he was lipping off and couldn't back it up.  Down you go then.  And then you have the women in the way and non-stop bitching.  Shut up and get the fuck out of the way because this is man to man and we are going to have a go.

It is fight club.  

Wed, 08/19/2015 - 18:27 | 6445321 bigrooster
bigrooster's picture

I don't want to get too excited but gold/silver had an awesome day in the face of a pretty big down day in the market.  It is almost as if the "market" is starting to work.  I know, I know gold will get slammed $20 tomorrow morning pre market...

My only good recent trace was my Jan 2016 AUY $2.50 call options at $.17 3 weeks ago that have just about doubled now.  If this gold run continues I am thinking they could be a 10 bagger!

Wed, 08/19/2015 - 20:42 | 6445651 JoWazzoo
JoWazzoo's picture

Why the big sell off at the close??  I was totally expecting to see a PPT ramp up to unchaned on the day - like usual.

The FOMC minutes were their usual joke and the ramp up off the release was even more of a joke.

Wed, 08/19/2015 - 23:27 | 6446041 hedgiex
hedgiex's picture

Great Charts like Symphony Scores. 

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