The Carnage Returns: Stocks Tumble After Sharp Chinese Devaluation; Brent At 2004 Lows; Gold Surges

Tyler Durden's picture




 

On the first trading day of the year, stocks crashed after China shocked the world with a circuit-breaking market slide that was not contained by the government. On the second trading day, after the Chinese government intervened drastically, global equities stabilized if just barely.

Then overnight, even as Chinese stocks surged higher by 2.3% after the ban on major shareholder selling was extended, the global market was far more focused with what was going on in China's currency, which as previously reported, plunged to new 5 year lows, while the spread between the onshore and offshore Yuan rose to a record wide, suggesting the depreciation in the currency is only going to accelerate from here, and a big payday for Kyle Bass is coming.  Then again, how this is surprising since China's December 11 announcement it would devalue against a basket of currencies, not just the USD, is not exactly clear to us.

 

“China is for sure back in focus,” said Didier Duret, chief investment officer at ABN Amro NV’s wealth-management unit. “I’d say this is an echo of what happened in August maybe more than a replay. It’s making people nervous.”

This accelerating depreciation, despite constant official lies to the contrary, such as this one from yesterday....

  • CHINA'S YUAN WON'T SEE SHARP DEPRECIATION: SECURITIES JOURNAL.

... has clearly spooked traders and heightened concerns that the outlook for global growth is dimming.  To be sure, North Korea's first hydrogen bomb test overnight even as geopolitical tensions in the Mideast refuse to go away, have not helped risk sentiment.  The MSCI All-Country World Index fell 0.4 percent at 10:49 a.m. London time. The Stoxx Europe 600 Index slid 1.1 percent and futures on the Standard & Poor’s 500 Index dropped 1.4 percent.

As a result, the sharp weakness seen early in the session in US equity futures has growing worse, and while global equities are down across the board, today's session could be as bad as that of Monday if not worse, especially since moments ago Brent tumbled below $35 for the first time since 2004.

 

Elsewhere, the yen reached its strongest level since October and Treasuries rose for a fifth session on demand for haven assets. Finally, despite or perhaps due to the broad risk-off sentiment, gold has finally woken up and as of this morning was trading at the highest price in over a month.

Before we go into details of the overnight carnage, this is where we stand currently: S&P futures now down 33 points or 1.63% while 2Y Treasury rallies pushing its yield back below 1% as EU stocks extend their drop after China weakened its currency, North Korea says it tested a hydrogen bomb; Brent crude falls to lowest level since 2004.

Equity Futures:

  • S&P 500 futures down 33pts or 1.63% to 1978; (high 2012; low 1976)
  • DJIA futures -266pts or 1.5%
  • Nasdaq 100 futures -79pts or 1.8%
  • Stoxx 600 down 1.5% to 354
  • MSCI Asia Pacific down 0.9% to 127
  • Brent Futures down 3.1% to $35.09
  • Gold spot up 0.5% to $1,083
  • Silver spot up less than 0.1% to $13.99

Commodities:

  • WTI Crude -2.5% to $35.09/bbl (range $34.80 to $36.39)
  • Brent Crude -3.6% to $35.12/bbl
  • Gold +0.8% to $1,087/oz
  • Copper -1.1% to $2.07/lb

Rates/FX:

  • 30-yr -5.92bps to 2.9359%
  • 10-yr -5.31bps to 2.1826%
  • 2-yr -2.19bps to 0.992%
  • Dollar Index Spot little changed at 99.43
  • Euro/Dollar -0.1% to $1.074
  • GBP/Dollar -0.1% to $1.4659
  • Dollar/Yen +0.6% to 118.37

Looking at regional markets, Asian stocks traded mostly lower following the subdued lead from Wall St., with further weak Chinese data, more aggressive CNY softening by the PBoC and a North Korea nuclear bomb test adding to the risk averse tone. ASX 200 (-1.2%) was led lower by commodity-linked weakness, while Nikkei 225 (-1.0%) declined as JPY strength dampened exporter sentiment, with poor Chinese services PM! which posted a 17-month low, adding to the region's gloom . Elsewhere, US equity futures also saw a bout of pressure overnight in the wake of a North Korean nuclear bomb test and further softness in the CNH which was
perceived as a negative signal from the world's second largest economy, while the MSCI emerging market index reached its lowest level since July 2008. However, the Shanghai Comp (+2.3%) outperformed on reports that China is to extend the ban on major shareholders from selling shares. Finally, 10yr JGBs gained as the negative sentiment in the region spurred demand for safer assets, while the BoJ were also in the market for 1.27tr1 of government debt.

A quick reminder why China's devaluation is bad - in a zero sum world, China's export gains, mean everyone else's export losses: "This isn’t good for the rest of the world. Until China stops weakening the yuan, global markets will struggle to stabilize,” said Koichi Kurose, Tokyo-based chief market strategist at Resona Bank Ltd. "The Chinese authorities may be trying to prop up the economy by boosting exports, but while that’ll help one part of China’s economy, it comes at the sacrifice of someone else."

"There’s word spreading in the market that state funds are buying, but the idea is to hold up the market, not to bolster it by a large margin,” said Dai Ming, a fund manager at Hengsheng Asset Management Co. in Shanghai.

Top Asian News:

  • Caixin China Services PMI Falls to Second Lowest in Decade: Gauge fell to 50.2 in Dec. vs 51.2 in Nov.
  • Chinese Brokerage Head Targeted in Probe by Communist Party: Changjiang Securities case adds to wave of probes in finance
  • Rupee Bonds Cheaper Than Loans Make Arrangers Bullish for 2016: Offerings will probably rise to a record this year
  • Huawei Starts Selling Honor-Brand Smartphone in U.S. Market: Available for pre-order on Amazon and Newegg.com

European equities sank after emerging-market stocks dropped to a six-year low and developing-nation currencies slid on concern a weaker yuan may spark a wave of global turmoil similar to what followed China’s shock depreciation in August. Indeed, sentiment in Europe today has once again been dictated by events in Asia overnight, with China remaining in focus, while elsewhere sentiment has been shaken by North Korean hydrogen bomb tests . European equities spent the morning in the red, with Euro Stoxx down over 1% on the day and around 3.8% for the week. Dialog Semiconductor (-4.2%) is the worst performer in Europe today after reports that Apple are to reduce output of its latest iPhone by 30%.

Amid the concerns surrounding China, the materials sector is the notable underperformer amid growth concerns, while the metals complex sees gold as the notable outperformer amid risk off sentiment. Separately, the energy complex has seen further softness this morning to pare yesterday's API inventory inspired gains, with the weakness attributed to USD strength.

"It could be a difficult year,” said Fredrik Nerbrand, HSBC’s London-based head of asset allocation. “We believe 2016 is a year for capital protection rather than appreciation. The increased focus on uncertain and volatile economic data releases is likely to cause markets to overreact.”

Top European News:

  • John Lewis Provides Holiday Cheer as Store’s Online Sales Soar: Web sales rose 21% in six weeks ended Jan. 2
  • U.K. Services Cool in December as Confidence Hits 3-Year Low: Markit said report together with its latest surveys of manufacturing and construction indicates U.K. economy grew 0.5% in 4Q, down from 0.6% it estimated last month.
  • ‘Brexit’ Gamble Enters Crunch Phase as Cameron Returns to Merkel: Cameron travels to Bavaria on Wednesday to meet with German Chancellor Angela Merkel

Dialog Semiconductor Plc, the chipmaker whose biggest client is Apple Inc., dropped 4.3 percent as Nikkei Asian Review reported the U.S. company would reduce the first quarter output of its latest iPhones by about 30 percent. AMS AG and ARM Holdings Plc, also Apple suppliers, lost at least 3 percent.

Taiwan’s Largan Precision Co. and Catcher Technology Co. led declines among Apple suppliers, slumping more than 5 percent and sending Taiex index to a four-month low.

In FX, today's session was again dominated by the JPY pairs, with Asia once again providing the major drivers of trade. China Caixin services PMI contract dropped significantly, and with the CNH weakening to fresh multi year highs, growth and instability concerns dominated. North Korea added to global woes with its first H-bomb test, so it was no surprise to see spot and cross JPY extending recent lows, though notable was USD/JPY finding strong support comfortably ahead of 118.00. As a result, the yen appreciated 0.5 percent to 118.46 per U.S. dollar and reached 118.34, the strongest since Oct. 15.   Japan’s currency surged more than 1 percent against the yuan to the highest level since October 2014, just before the Bank of Japan expanded monetary easing.

EUR/JPY has tested 127.00 and AUD/JPY to sub 84.00, dragging the respective spot rates lower, though anticipated EUR/USD bids ahead of 1.0700 continue to support. CAD has raced through 1.4000 on broader risk sentiment, with fresh losses in Oil adding to weakness here. AUD now eyeing a fresh move on .7000. GBP largely ignored the small miss in UK services PMI (55.5 vs 55.6 exp).

In commodoties, Brent crude for February settlement fell as much as $1.59, or 4.4 percent, to $34.83 a barrel on the London-based ICE Futures Europe exchange. West Texas Intermediate declined 2.5 percent after dropping 2.2 percent Tuesday. U.S. oil inventories probably increased by 500,000 barrels last week, according to a Bloomberg survey before Energy Information Administration data Wednesday. The industry-funded American Petroleum Institute was said to report stockpiles fell by 5.6 million barrels while fuel supplies gained.

Gold for immediate delivery advanced 0.6 percent to $1,084.52 an ounce following two days of gains. Demand for the precious metal has been bolstered as gyrations in global stock markets enhance its allure as a haven investment. Zinc on the London Metal Exchange dropped 2.2 percent to the lowest since Dec. 29. Copper fell 0.9 percent.

It's a busy session on the US calendar today, where the session kicks off firstly with the December ADP employment change print, followed closely by the November trade balance. The final December services and composite PMI’s follow this before we get the all-important ISM non-manufacturing where market expectations are currently sitting for little change at 56.0. November factory orders data along with the final revisions to durable and capital goods orders are also due out before we get the Fed's FOMC minutes from its first rate hike in 9 years at 2pm.

Top Global News:

  • Yuan Sinks to Five-Year Low as PBOC Surprises With Weaker Fixing: China sending out confusing policy signals, Macquarie says
  • Valeant Said to Name New CEO With Pearson Still Hospitalized: Schiller, Rosiello may be candidates, Wall Street Journal says
  • North Korea Says It Successfully Tested First Hydrogen Bomb: Regime in Pyongyang says won’t give up nuclear development. North Korea’s Hydrogen Bomb Claim Disputed by Weapons Experts: Data show explosion yield lower or similar to previous blasts
  • Apple Suppliers Drop in Asia After IPhone Output Cut Report: Nikkei Asian Review reports cut of 30% in first quarter
  • Brent Crude Drops to 11-Year Low Before U.S. Oil-Stockpile Data: Citigroup, UBS see possible slide in prices toward $30
  • Halliburton Faces Longer EU Probe on Missing Early Offer Slot: Co. will likely face protracted antitrust review of its plan to buy oil services rival Baker Hughes for $26b
  • Verizon Said to Start Process to Sell Data Centers, Reuters Says: Co. hopes to get more than $2.5b from sale
  • NuVasive to Acquire Ellipse Technologies in $410m Deal: Elipse develops surgical implants to treat skeletal deformities

Bulletin Headline Summary from RanSquawk and Bloomberg

  • Aggressive CNY softening by the PBoC and a North Korea nuclear bomb test have added to the weeks risk averse tone
  • In FX markets, today's session was again dominated by the JPY pairs, with Asia providing the major drivers of trade
  • Highlights today include, US ADP employment change, ISM non-manufacturing composite, factory orders, durable goods and the release of FOMC minutes
  • Treasuries gain for a fifth day as China devalues yuan, North Korea says it successfully tested its first hydrogen bomb and a report said Apple would reduce 1Q output of iPhones.
    North Korea’s hydrogen bomb test risks reigniting tensions with China and the U.S. after months of calm even as some experts cast doubt on the full extent of Pyongyang’s claim
  • The yuan sank to a five-year low and tumbled 1.1% in Hong Kong after the PBOC set the reference rate at an unexpectedly weak level, a sign that policy makers are becoming more tolerant of depreciation
  • A private Chinese services gauge slumped to the second- lowest reading since the series began a decade ago and close to a level signaling contraction, suggesting conditions may be weaker than the government’s official index indicates
  • The Chinese economy may be headed for a “hard landing” as borrowers are taking on record amounts of debt to repay interest on their existing obligations, said Marc Faber
  • Apple Inc. suppliers from Asia to Europe fell after a report saying the world’s most valuable company would reduce 1Q production of its latest iPhones by about 30%
  • S&P 500 will fall into a full-sized bear market this year as seven-year cycle in equities is rolling over, UBS technical analysts wrote in a note
  • Merkel’s government said about 1.1m asylum seekers entered Germany last year, reaching a record as Europe struggles to manage the influx of refugees from the Middle East and beyond
  • A U.K. services gauge eased in December as risks including a British exit from the EU weighed on hiring and business expectations fell to a three-year low
  • $25.75b IG priced yesterday, no HY. BofAML Corporate Master Index OAS holds at +173, YTD range 180/129. High Yield Master II OAS narrows 7bp to +703; YTD range 733/438
  • Sovereign bond yields lower. Asian and European stocks lower, U.S. equity-index futures slide. Crude oil lower and copper lower, gold gains

US Event Calendar

  • 7:00am: MBA Mortgage Applications, Jan. 1 (prior 7.3%)
  • 8:15am: ADP Employment Change, Dec. est. 198k (prior 217k)
  • 8:30am: Trade Balance, Nov. est. -$44b (prior -$43.89b)
  • 9:45am: Markit US Services PMI, Dec. F, est. 54 (prior 53.7); Markit US Composite PMI, Dec F (prior 53.5)
  • 10:00am: ISM Non-Mfg Composite, Dec., est. 56 (prior 55.9)
  • 10:00am: Factory Orders, Nov., est. -0.2% (prior 1.5%)
    • Factory Orders Ex Trans, Nov. (prior 0.2%)
    • Durable Goods Orders, Nov. F (prior 0%)
    • Durables Ex Transportation, Nov. F (prior -0.1%)
    • Cap Goods Orders Non-def Ex Air, Nov F (prior -0.4%)
    • Cap Goods Ship Non-def Ex Air, Nov F (prior -0.5%)
  • 2:00pm: FOMC Minutes, Dec. 15-16

DB's Jim Reid concludes the overnight wrap

With the exception of bourses in China, it’s been a broadly weak start for risk assets for most of the region as concerns reverberate around further weakening of the Chinese Yuan, while headlines of nuclear testing in North Korea are not helping sentiment. Losses are being led out of Japan where the Nikkei is -1.15%, while there’s been falls also for the Hang Seng (-0.92%), Kospi (-0.50%) and ASX (-1.07%). In credit the Asia iTraxx is currently +3bps wider. This is in contrast to moves in China however where the Shanghai Comp (+0.69%), CSI 300 (+0.35%) and Shenzhen (+0.56%) are all up at the midday break and more than likely a sign of those government support measures yesterday. Much of the newsflow this morning however is being dominated by the latest moves in China’s currency. The PBoC set the Yuan fix 0.22% weaker this morning (lower for the seventh day in a row) to the weakest level since 2011 while the spread between the onshore and offshore currencies at one stage widened to the largest on record. The offshore Yuan is currently down -0.48% as we type and at its weakest level since 2010. That’s seen EM currencies come under similar pressure this morning where there are declines of around half a percent for most.

Meanwhile we’ve also had some data out this morning and it’s made for more disappointing news. The non-official Caixin services PMI in China revealed a 1pt fall to 50.2, the lowest reading since July 2014. Combined with the soft manufacturing print from earlier in the week, the composite dipped below 50 last month to 49.4, a fall of 1.1pts. China was cited as a big risk for markets in most 2016 outlook publications and while it’s very early days, events there are dominating markets and price action for now.

Recapping the rest of the news and price action yesterday. 2016 hasn’t been too kind for Oil markets so far and yesterday saw WTI (-2.15%) take another dip lower, at one stage falling below $36 only to finish slightly above that by the closing bell. Despite that US HY spreads actually closed more or less flat although still underperformed relative to the modest gains over in Europe. With markets a bit more stable, yesterday saw the new issue market get going, with over $25bn pricing in the IG space alone.

Meanwhile, yesterday saw our US economists slash their Q4 GDP forecast. They now expect Q4 real GDP to be just 0.5%, a full percentage point cut from the previous forecast while at the same time highlighting that this still might be too high in light of what could be a much larger inventory liquidation than what they have assumed. This downward adjustment has the effect of now lowering their projected Q4-over-Q4 rate of real GDP growth by 30bps to 1.7%. They highlight however that some of the expected Q4 GDP softness may carry over into the current quarter and so have also trimmed their current quarter growth projection by 50bps to 1.5%. Highlighting the reasons for the downward changes to the forecasts, our team highlight that the data released over the last couple of weeks (i.e. durable goods, international trade, constructing spending and manufacturing ISM) have been softer than expected with most of this adjustment due to less stockpiling. They point out that there is a high correlation between the change in private inventories and the inventory component of the manufacturing ISM (nearly 0.8). In fact, last quarter ISM inventories fell to 44.3 from 48.8, the lowest since Q4 2009, when inventory liquidation totaled nearly -$50bn. This raises the possibility that inventories could in fact be lower than what they predict and raising the possibility of taking GDP temporarily into negative territory. It’s worth reminding, as we noted yesterday, that the Atlanta Fed recently downgraded their Q4 GDP forecast to just 0.7%.

Staying on the data theme, after Monday’s disappointing German inflation numbers, Euro area CPI failed to meet hopes for a modest rise after the core reading came in unchanged at +0.9% yoy in December (vs. +1.0% expected), with an estimate for the headline at +0.2% yoy. Italian CPI (-0.1% mom vs. +0.2% expected) also missed to the downside, while Germany’s unemployment rate held steady at 6.3% in December as expected. Meanwhile in the US we saw the ISM NY print rise 1.3pts in December to 62.0, while the total vehicle sales reading for last month showed a slightly disappointing pullback in sales to 17.2m on an annualized basis (from 18.1m).

It’s set to be a busy day ahead with a packed calendar for us to get through. This morning in Europe will be all about the PMI’s with the final services and composite prints due for the Euro area, Germany and France as well as indicators out of the UK, Italy and Spain. French consumer confidence data and Euro area PPI is also due out in the European session this morning. The US session kicks off firstly with the December ADP employment change print, followed closely by the November trade balance. The final December services and composite PMI’s follow this before we get the all-important ISM non-manufacturing where market expectations are currently sitting for little change at 56.0, although our US economists are less optimistic and expect a drop to 54.0 (from 55.9). November factory orders data along with the final revisions to durable and capital goods orders are also due out before we get the aforementioned FOMC minutes at 7pm GMT.

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Wed, 01/06/2016 - 08:26 | 7003985 RockySpears
RockySpears's picture

"Watch out below when 6000 fails."

 

That looks to be any second now ....

Wed, 01/06/2016 - 07:06 | 7003778 northern vigor
northern vigor's picture

I see the archaic PM metals are in freefall...stupid gold bugs.

sar/off.

Wed, 01/06/2016 - 07:25 | 7003825 Croesus
Croesus's picture

Dude, you're forgetting one of the cardinal rules of investing in the "New (ab)Normal": 

No matter what happens, Gold Goes Down. 

1. Stawks up, Gold Goes Down. 

2. Stawks down, Gold Goes Down. 

3. Mines shutdown? Gold goes Down. 

4. China's on a buying spree? Gold Goes Down. 

5. Panic and fear set in? Gold goes down. 

6. Gold goes up? Gold goes down. 

7. Gold goes down? Gold goes down. 

(I can keep going....) 

Wed, 01/06/2016 - 07:53 | 7003887 Seasmoke
Seasmoke's picture

Hey Croesus. I see you still have a good understanding of Gold. Lol

 

Happy New Year buddy. 

Wed, 01/06/2016 - 09:19 | 7004268 Croesus
Croesus's picture

@ Seasmoke: 

Chief! Happy New Year to you! Hope all is well back home!

Wed, 01/06/2016 - 08:06 | 7003923 beemasters
beemasters's picture

Well, only at ZH, we get headlines: Gold surges, Gold soars, Gold Spikes (I can keep going too) when it moves up 1-2%. Ok, it goes down worse, but what's your point?

Wed, 01/06/2016 - 08:34 | 7004022 mayhem_korner
mayhem_korner's picture

 

 

Search Reuters for any such words when Gold (or rather GLD) moves up by any amount.  All you'll find in those articles will be "...but...is expected to cap any upside..."

The last time oil was $35/bbl, gold was $400/oz.  If not for the incessant bidding up of equities to maintain the illusion of prosperity, it would be apparent to all that gold - even with the ridiculous dilution of GLD - holds 2-3 times its purchasing power from a decade ago.

Wed, 01/06/2016 - 09:18 | 7004259 Government need...
Government needs you to pay taxes's picture

Upvote for sheer magnitude of sarcasm, plus poking fun at the magnitude of the .gov manipulation from 'the tranny behind the curtain'

Wed, 01/06/2016 - 08:35 | 7004028 crossroaddemon
crossroaddemon's picture

I can't foresee any circumstance  under which gold would be a good buy. As an investment it's obviously horseshit. In any scenario that involves the current power structures it'll never be acceptable as currency and news flash: the present power structures are going nowhere anytime real soon. The only exception I can think of is a full on tech crash and in that circumstance nobody is going to give you something edible for something that is not.

Even if I'm wrong, and you guys get the decentralized small scale currencies you hope for... you realize that nothing makes a good currency unless lots of people have it, right? Not enough people are holding PMs to make it so viable currency.

Look, money is an idea. is an artificial construct. You guys keep spouting "gold is money" like it's a fucking law of physics. Money is anything people will accept for goods or services. For the foreseeable future that will not be gold or silver.

Wed, 01/06/2016 - 08:46 | 7004084 mayhem_korner
mayhem_korner's picture

 

 

Save that post, Jethro.

Wed, 01/06/2016 - 09:40 | 7004328 Croesus
Croesus's picture

@ Crossroaddemon: 

I partly agree with your comment that "Money" is an artifical construct...

It's essentially an agreement between 2 parties, concerning the medium of exchange used. 

I'd suggest reading this article: 

http://seekingalpha.com/article/295877-aristotles-money-criteria-support...

(Never thought I'd see the day where I'd be linking to Seeking Alpha, but here it is). 

The points illustrated in this article, show exactly why JP Morgan uttered his now famous quote about Gold being money. 

These same points also show why Gold is respected among all cultures, throughout history. 

Here's a question for you: 

What do: A Wall Street executive, a Uyghur, a Tibetan Buddhist, an Aztec warrior, a Sikh, and a European housewife all have in common? 

A: They all know what Gold is, and assign a value to it. 

You cannot say the same for: 

Stocks, bonds, seashells, real estate, fine art, wine, bitcoin, guns, chickens, cows or books. (Just examples given, but you should get the point). 

You're looking at "money" from a standpoint of convenience....(e.g. Gold is not money, because I can't pay for my morning coffee with it), but it doesn't change the universal recognition that Gold has, as "something with value". 

 

 

 

Wed, 01/06/2016 - 13:14 | 7005636 BarkingCat
BarkingCat's picture

I think you went off the rails with including chickens and cows

Wed, 01/06/2016 - 09:55 | 7004458 Panafrican Funk...
Panafrican Funktron Robot's picture

Main idea with gold is as a store of value; it doesn't really matter whether it's a currency or not.  I can't easily trade a Picasso or 10,000 acres of land, but it's a pretty good idea to diversify your wealth into tangible assets.  Otherwise, central banks and billionaires wouldn't do it.

Wed, 01/06/2016 - 07:08 | 7003783 NoDebt
NoDebt's picture

Anybody feel like buying this dip?  No?  OK.

Welcome to Japan.

Wed, 01/06/2016 - 07:11 | 7003792 koaj
koaj's picture

Gas is close to $1.60 a gallon in NJ

 

Wed, 01/06/2016 - 08:05 | 7003919 Takeaction2
Takeaction2's picture

Wow.....here in Oregon $2.10 to $2.20...

Wed, 01/06/2016 - 08:19 | 7003956 lakecity55
lakecity55's picture

Probably because your enviro-nuts have a Huge State Tax on it.

When I left on this trip, it was 1.65$ at home.

Wed, 01/06/2016 - 09:19 | 7004269 Government need...
Government needs you to pay taxes's picture

Nothing stimulates 'huge recession' faster than 'huge tax'.

Wed, 01/06/2016 - 13:23 | 7005671 BarkingCat
BarkingCat's picture

That and Oregon has a law that requires that gas stations are full service. 

...unless they got rid of it in the last few years.

 

Washington state gas is above $2.00 per gallon also.

According to gasbuddy.com average price in Seattle is over $2.50

Yes, it is largely because of high tax at the pump.

Wed, 01/06/2016 - 07:12 | 7003793 Squid Viscous
Squid Viscous's picture

"this is the big one!" - Fred Sanford

Wed, 01/06/2016 - 07:34 | 7003842 _ConanTheLibert...
_ConanTheLibertarian_'s picture

He managed to get a woody?

Wed, 01/06/2016 - 07:19 | 7003808 surf0766
surf0766's picture

Doesn't matter. Bubba Trump will make Merkia great again. He will bring manufacturing back with his magic.

Bubba Trump Emperor for life.

All Hail Bubba Trump

Wed, 01/06/2016 - 07:31 | 7003833 new game
new game's picture

trump de dumpte sat on a big wall (to be built)

trump de dumpte, -well you know the rest of the story...

Wed, 01/06/2016 - 07:35 | 7003846 Arnold
Arnold's picture

I can see the lasting damage now, of the six times your mother dropped you on your head.

Public displays of dementia are seldom pretty.

 

Wed, 01/06/2016 - 08:07 | 7003927 Takeaction2
Takeaction2's picture

Have you even listened to one of his many speeches?  Suse...the guy is real.  Get over it.  Your Hillary is not going to win.  Especially with the new BENGAHZI movie coming out on the 15th.  Perfect timing.

Wed, 01/06/2016 - 09:13 | 7004231 BigJim
BigJim's picture

Hey, don't mock The Donald! There are loads of Crypto-Trumptards here at the Hedge.

Wed, 01/06/2016 - 07:19 | 7003809 wmbz
wmbz's picture

"There’s word spreading in the market that state funds are buying, but the idea is to hold up the market, not to bolster it by a large margin,” said Dai Ming"

No shit? Wow, who would believe "they" would do such a thing?

Hope our people don't get that idea over here!

So much bullshit, so little time!

Wed, 01/06/2016 - 07:20 | 7003813 Last of the Mid...
Last of the Middle Class's picture

Only option they'll have is to print like a mofo with tons of mumbo jumbo further destroying the already decimated middle class. What tools!

Wed, 01/06/2016 - 07:20 | 7003816 DirkDiggler11
DirkDiggler11's picture

Not exactly the start to 2016 that all of the "Talking Anuses" on CNBS were forecasting. Becky "suck my granddaddy Warren's wrinkled old cock" Quick had better break out her extra special set of Pom-Pom's to help cheer the market higher while Andrew Ross maintains his favorite spot in the green room giving free BJ's to all of the "guests". Going to be a long year for the Fed propoganda machine cunts at CNBS.....

Wed, 01/06/2016 - 08:38 | 7004041 de3de8
de3de8's picture

+1000 for the Becky visual

Wed, 01/06/2016 - 07:24 | 7003822 deerhunter
deerhunter's picture

All is well. 5% unemployment. Crazy people can't buy guns now. Soon smart gun technology will reaquire you to be smart enough to buy a stolen dumb gun to use it. N Korea nuke test causes crude oil price to fall. What's not to like?
I once heard a comedian say he never went to bed with any ugly women but he sure woke up with a lot of them. Beer goggle happy days are here. Cheers and welcome to 2016. May you live in interesting times.
Oh and we have pulled all troops out of Afghanistan but a Green Beret died in a firefight.
Always keep one eye on your bobber.

Wed, 01/06/2016 - 08:06 | 7003920 NoWayJose
NoWayJose's picture

There is no part of smart gun technology that can be added onto guns without a drastic re-design. And anything 'smart' is going to have to be repairable - meaning it can be removed or disabled. My guess is that the government will mandate it just to force gun prices higher.

Wed, 01/06/2016 - 08:15 | 7003952 lakecity55
lakecity55's picture

"Kim Jr we have a problem!"
"What is it now, General? I'm playing with my new model rockets."
"The Iranians are here about buying an H-Bomb."
"I know, we invited them."
"But the Saudis have flown in, unannounced!"
"OK, OK, put them in separate hotels. We only have two, that should be easy. Hide their plane so the Iranians can't see it."
"Yes, oh Son of the Great Leader."
"And call the H-Bomb factory. Tell them to ramp up production or face a cage of hungry dogs!"
"Yes, SIR!"
"And don't fuck this up, General, or there is a mortar round in your future."

Wed, 01/06/2016 - 07:28 | 7003827 new game
new game's picture

bomb ready to explode. debt bombs everywhere, currency bombs, real bombs too.

swans getting restless. and then there is Kyle, ha, the fucker farts in silk pjs as the world 

hands him easy trades to make billions off of. all i can do this morning is lol,

and go to jury duty and think about merican justice, lol, so i don't go nuts...

Wed, 01/06/2016 - 07:47 | 7003875 Seasmoke
Seasmoke's picture

Don't forget jury nullification 

Wed, 01/06/2016 - 08:00 | 7003905 Fred C Dobbs
Fred C Dobbs's picture

I would have reasonable doubt if it involed tax laws, drug laws or gun laws.  For starters. 

Wed, 01/06/2016 - 07:40 | 7003830 Tinky
Tinky's picture

I predict that we'll all look back at this $5.00 "surge" in the price of gold as having been an important inflection point.

Just kidding.

Wed, 01/06/2016 - 07:41 | 7003862 Cycle
Cycle's picture

Minsky meets Mao

Wed, 01/06/2016 - 07:52 | 7003884 buzzsaw99
buzzsaw99's picture

That's not right. How can the price be going down? [/Mortimer]

Wed, 01/06/2016 - 07:52 | 7003885 Panic Mode
Panic Mode's picture

Long pop corn and long goat  

Wed, 01/06/2016 - 08:09 | 7003918 lakecity55
lakecity55's picture

"Welcome to America, Achmed. You don't plan any terrist activity here, do you?"
"No. Here is the magazine from my AK."
"Excellent. We have a special gift for you."
"A goat! (caresses fur) So lovely, so much better than your nasty whore American women!"
"Yes, it is our hope you will leave our women alone."
"Can I name him?"
"Sure. Now, let's get your O-Phone, goat feed coupons, O-Care, and EBT papers signed. And, oh, yes, here is your housing voucher, with goat permit. By the way, what job did you do?"
"I made car bombs."
"Excellent. There is an opening at a fieworks factory near your home. I'll make a call."

Wed, 01/06/2016 - 07:57 | 7003897 MFL8240
MFL8240's picture

In 2015 the Tribe told the American sheep that Gold was down because Oil was down, now Gold is up because Oil is down?   Not possible to follow their lies, this whole group must be gone starting with the Federal Reserve bank of courrption and lies!

Wed, 01/06/2016 - 08:01 | 7003910 lakecity55
lakecity55's picture

And, to add to your post, remember yesterday the article where more native Au was leaving than was arriving!

Wed, 01/06/2016 - 07:59 | 7003900 lakecity55
lakecity55's picture

I do not have the charts in front of me, but I think there wa a support level for Au at 1080; if I am correct, we have accelerated beyond that. Time will tell.

All the PR in the press against PMs sort of evaporates when it gets dirty in the paper instruments.

Wed, 01/06/2016 - 08:32 | 7004014 Oldwood
Oldwood's picture

Gold is our thermometer. When its price rises substantially, it is telling us we have a fever. When all of their palliative care and placebo medications can no longer give us any illusion of health, I fear we will finally succumb to our disease of debt fueled lethargy. Gold price is our sign. Some may profit from it, just as many have been profiting from our current suffering, but for the vast majority, it will be only more and worse hell.

And really, if gold does rise substantially, the government will have to stamp it out rather than allow it to reveal their empty promises and theft. After all, it's not the economy, it's our government that is the problem. They have to power to tax and regulate ANYTHING, and they will. Constitutional restrictions are nothing to them. Obama MAKES the laws we must all  live under.

Wed, 01/06/2016 - 08:59 | 7004157 potemcam
potemcam's picture

So you are saying that Gold will go up in price when there is economic turmoil, a statement that can't be borne by fact, as there is no evidence of this actually happeneing.

And at the same time, you say that when the price jumps, the government will stamp it out when it rises, which I'm assuming means the price will not go up? I can't tell from your post what "stamp out" means, so I'm assuming it means they won't allow the price to rise?

So like every ZHer, you've taken both sides of the fence. When things are bad it will go up, but when it goes up, it won't go up, because governments won't allow it. Great logic. When you play roulette, do you bet on red, black and green? I bet you win all the time!

Wed, 01/06/2016 - 08:00 | 7003909 NoWayJose
NoWayJose's picture

If only the Chinese people were smart enough to buy gold before their currency was devalued... Wait now... They were!

Wed, 01/06/2016 - 08:54 | 7004124 potemcam
potemcam's picture

Yes, because Gold hasn't devalued at all since its $1800 highs, now has it? What other investments to you recommend the Chinese invest in that will lose them a third of their wealth?

Wed, 01/06/2016 - 08:06 | 7003921 ramgold2206
ramgold2206's picture

is 2016 going to be the year the nuke finally goes off on this monster we call a financial system

I'm turning every bit of paper I have into shiny metal

 

www.teamramgold.com/about-us

Wed, 01/06/2016 - 08:56 | 7004132 potemcam
potemcam's picture

One thing about gold: it never goes down in value! Oh, yeah, it's taken a massive nosedive. Well, don't let facts get in the way of a silly investment strategy.

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