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Dow Drops 800 Points From Fed Euphoria, Bond Yields & Black Gold Plunge
Another rip sold. Dow futures are down over 140 points in the pre-open (as it appears Cramer's pajama-wearers are derisking again). Following the 4th day of Yuan weakness, EUR-based carry trades continue their unwind and that pressure is driving USD Index notably lower, bond yields gapping lower, and commodities tumbling... except gold.
As Gold and bonds rally...
Charts: Bloomberg
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In Eric Cartman defeated voice- 'NYYOOOOOOoooooooooo!'
Platinum is up a bit as well although it got totally crushed the other day
Im still waiting for $900 platinum, order has been open for months
my down voter is probably right, I'll lower it to 810 area
Go with your gut.
Trolls are a fact of life to be ignored.
I'm all for gold as much as the next guy, but I'm sick of seeing these skewed charts (The thing about scale, is it can be used to increase or decrease impact). So gold has risen 6 or 7 bucks on something priced currently in the 1100's. What's that? a bit of half a percent? Yay lets break out the champaign because the chart shows it as a monstrous rise. Sigh.
Enough of the hyperbole already.
... but I'm sick of seeing these skewed charts
Nothing is skewed, Silver is flat this morning while Gold is up. Nothing unusual about that.
No you are not "for Gold"...at all.
What gives you away is that you actually care about a PAPER PRICE.
You are interested in gaining Fiatskis...which is what you desire.
Now you can desire those Bernanke Bux all that you WANT...
Knock yerself out.
The reason to own Gold is not to gain. It is to protect excess wealth.
Persnally I always am looking to buy Gold...AT A DISCOUNT. So I actually ENJOY low prices. (When I can pay less then for what reason do I want to pay more? That makes no sense.)
Buying Gold at a discount is the way that I have always bought it and I can actually gain Gold and add it to my collection in that fashion. There is NO CAPITAL GAIN (in taxable fiatskis) as I do not sell any of it for profit into the Fiatski Market. Only gains are taxable, gains do not include the initial investment capital, and the gains are measured in Fiatskis. It is nice being wealthy enough to do that.
(Actually you are wealthy enough to do that but you VALUE Fiatskis over Gold and that is YOUR CHOICE. Most everyone who posts here is wealthy enough to do that. Really it does not take anything but a little working capital and your time spent at some Garage Sales.)
But YOUR DOUCHE DISHONESTY is what irritates me because you are not into Gold at all but are overly interested in Fiatskis.
So you can be dishonest if you choose. But you lack any credibility.
Ad hominen and non sequitur all in one. Well done.
The *charts* are going off fiat prices and the *charts* are trying to show a dramatic rise in fiat which isn't there.
As to you're whole spiel about buying gold at a discount bla bla well no shit - you don't think 99% of people on ZH know that? You don't think that's why so many of us have been buying since after the dotcom bust? You don't think that's why most of us are still buying?
Sorry if you're long...peak auto production looks like it's gonna roll over. Not as many catalytic converters = lower platinum.
Although platinum has never been a currency, no country has ever made a law to confiscate it.
Platinum is so dense and hard that it cannot be counterfeited.
There is much less platinum in the world than gold, so it is still precious.
What is it worth? Who knows - but it may be a good place to put 2% of ones precious metals portfolio.
I've got one 1 oz. platinum eagle. It's cool but the premiums over spot are killer on platinum. Historically, platinum has been more expensive than gold. A lot of it comes from Russia so I wonder if it's been suppressed to hurt them. But it is used in catalytic converters and if car mfg. is down that could be a factor as well.
Are we there yet?
So....this is the Shemitah moment?
http://cdn.churchm.ag/wp-content/uploads/2012/02/Praying-Otter-620x836.jpg
Shemitah never existed. Go watch tv or listen to your favorite satantic musical group.
it was 9/13, get over it
technically it is an extended version this time. Jubilee to start according to the Holy Bible and Hebrew calendar on our pagan calendar Sun/Mon. Just saying.
Well the Dow Jones "Industrials" is down this morning another 1.5%...as I write.
Hey if we can sustain these losses on a daily basis we can lose one half of the DJIA price in about...one month...Thirty Days. It can be 8000 Dow in Thirty Days. That will manifest. October surprise everyone. We are in collapse.
People do not understand the implications of the Rule of 72 and percentages....
Let these scoffers scoff. Then the fall will happen and their boastful pride will cause it. Pride goeth before a fall.
Ask VW , and the refuges out the ME, and a fed who can't raise rates even at a small symbolic amount
goalposts on wheels whee
*IF* the count is correct, today marks the beginning of a Jubilee year. Biblically speaking, Jubilee cycles begin on Yom Kippur so today would be far more significant if the market gets bitch slapped.
Bring on the BULLARD!
Once you go down the "printing" road to keep the 1% wealthy you are engaging in a "let the majority eat cake" monetary experiment. We all know how this turns out.
Hedge accordingly.
Gold will see $2,000 again I bet with all the devaluations. Those in China who think they will devlaue the RMB lots moar might want to consider gold since it's pretty underpriced right now and it's not a bad way to store value as their currency drops.
RE there is too overpriced.
I hope this article does not jinx it. I swear Tyler I would love to whip your ass sometimes. Every single time you post this shit especially when the mini keebler elf will speak it reverses. If I am wrong you get the first 2 punches against me with no fighting back. If I am correct, you need a severe ass whooping.
lol. Hey, with ZIRP, how can the market not keep going up? Seriously, if the money is flowing, companies will keep buying back stock. If they get close to running out of stock, well, stock split time!
I hear ya. If the Fed lost control like a lot are saying then how can they say this is a controlled market crash. I don't get it. In fact these clowns have everybody addicted and corrupt so the ways you mentioned keeps this casino afloat. I have always stood by my original thought on this whole issue - Divine intervention or it ain't happening. Some people may not like that comment but its my personal feeling toward the matter at hand.
yup
On a different note, my new thermostat runs on what seems like a 0.5 degree difference if it should turn on or not. You know how long it takes a furnace to heat up? Who the fuck programmed that thing. I think I'll make my own using a basic stamp. Walk by it and, boom, furnace goes on. Then it thinks, oh, I don't actually have to be on. wtf.
LOL!!!!! They want your money.
Crude just hit the $43 handle
GOLD is only rallying in BRL
If gold is not acting like a 'commodity' - then is it something else - like 'real money'?
... then is it something else
Of course it is. It's value is whatever the buyer and seller believe it to be. Nothing more, nothing less. It's what happens when there is a transaction and both parties benefit.
S&P surges 2,5% up until tomorrow
Mark my word this capitalistic downturn will have four apparently large profile victims : ALL WOMEN.
1° Yellen has lost all credibility in her ditherings.
2° Lady Lagarde has lost her credibility as IMF head, in Greece and who knows maybe in Ukraine.
3° Dilma Roussef due to Petrobras in coming commodity meltdown.
4° Mutti Merkel due to VW and its corruption groundspell which compounds the refugee crisis that Europe has not managed; given all the squabbling which will only get worse with time.
Four women on the rack! As victims of Capitalism's wayward ways and criminal plays!
The new witches of Salem !
Capitalism?!?!? What the fuck are you talking about? In a capitalistic system the government does NOT bailout poorly managed banks and companies!!!!
WTF?! What we have been experiencing is fascism/cronyism. we all know how that turns out.
sorry LoP but this is what it is : US capitalism. Now married to Saud all for oil monopoly.
Before it became this it was Euro style and gave us 2 WWs !
I am not a marxist, but I do read history and Marx was right about causality : overproduction and concentration of power to monopoly systems (FED private owned is a monopoly and TBTF dictat under regulatory capture is an Oligopoly).
And we move back today to what Europe experienced a century ago, now under US monopoly neo-fascism.
The only time democracy worked somewhat in the US were FDR and Eisenhower years... But the price the world paid was it led to US hegemony. So what goes round comes around.
Marx analysed the coming storm of his age correctly. He didn't know the solution; his own was no better than the Anglo capitalist model of Dicken's age.
I don't know how a people's free enterprise system works. Maybe we have to invent it. But it has never truly existed for long in the past.
Doesn't it begin in Catalonia this weekend?
and what about the rest of us?
Buy the PPT-defended Dow 16k
According to Bank of America Merrill Lynch:
http://is.gd/5vle0j
Strategy Snippet
You can have too much of a good thing
The Fed is helping so much it hurts
We have noted that each incremental instance of monetary stimulus has been met with diminishing returns for risk assets. We think further easing, or a lack of tightening, in the U.S. is a negative for stocks. The expectation for Thursday’s FOMC policy decision was a rate hike and dovish commentary, or no hike and hawkish commentary. Instead, the Fed left rates unchanged and delivered a dovish message. In response, the S&P 500 sold off into the close and was down the next day. As we have noted recently, the biggest risk to equities could be another round of QE—suggesting that $4.5tn was not enough to prop up the U.S. economy. Also, the read across for global risk assets could be that significant liquidity provided by central banks may not always be sufficient to drive markets higher.
Tactical delay or real economic deterioration?
Our base case is that the Fed’s lack of action is a tactical delay, and therefore does not impact our outlook. We are maintaining our recently lowered S&P 500 year-end target of 2100. We note that our technical team sees risks to the bull market, and our global quant team’s Global Wave has been declining for the last eight months. Our economists’ real- time indicator of global growth, the GLOBALcycle, softened in August (led by EMs), and we will be closely watching for signs of stabilization or further deterioration.
The Fed on hold = more of the same
The story for the last five years looks set to continue for at least the next few months. With easy monetary policy and a scarcity of growth and value, we would expect to see positive momentum in Growth and Dividend Yield stocks continue. But, given our economists’ expectations for a pick-up in global growth over the next several quarters, buying cheap, unloved cyclicals could start to play out. This would also be true for Energy, which is the ultimate pain trade. Energy has record low valuations, ownership and investor sentiment, and our commodity strategists forecast a year-end rally in oil prices.
Multinationals: intersection of quality & weak dollar beneficiaries
Buying multinationals looks increasingly attractive. These high quality stocks are beaten- down, inexpensive and under-owned by active funds. The companies have produced upside earnings surprises, and the stocks have been outperforming since mid-August, despite the volatility associated with concerns about global growth. The performance of foreign- exposed stocks is now more correlated to moves in the US dollar than at any point in nearly a decade. Dollar strength has been a source of pain for multinationals so far this year, but this could reverse if a dovish Fed exerts more downward pressure on the dollar.
China risks - avoid Materials
With the recent slowdown in China, we are mindful of the risk of a recession. The area most exposed to China is the Materials sector. This sector’s performance is most highly correlated with China’s stock market, as well as with monetary conditions in the region. Metals and Mining looks particularly unattractive given overcapacity in China, and screens as a Value Trap in our work. Health Care is the least correlated with China.