Silver Soars, Stocks Slump As Equity "Fear" Hits All-Time Record High

Tyler Durden's picture

"smooth sailing", right?

 

Something is going on beneath the covers...

Last week saw the biggest addition of shorts across the Treasury Bond Complex in over 3 years (with record ultra shorts)...

 

And CSFB's "Fear Barometer" just hit an all-time high...

As CS' Mandy Xu notes, typically, an increase in the CSFB is caused by a combination of higher put demand and lower call demand. Interestingly, this time, the entire move was driven by the call-side. The derivatives market is assigning less than 1% probability the market will rise by 10% in the next three months vs. 17% probability it will fall by 10%.

*  *  *

And so while stocks tried (twice) to ramp in the face of faux-ness, they couldn't... Despite a well placed Italian headline into the close...

  • *ITALY FIN. INSTITUTIONS, CDP AGREE TO SET UP FUND FOR BANKS

Just as we predicted...

 

Which totally failed.. as stocks dumped into the red!

 

Who could have seen that coming? An EU banking bailout rumor headline-driven rally and USDJPY ramp crushed by crude's collapse on Russia "no freeze" headlines...

 

Post-Payrolls, stocks are red but crude is soaring with gold and bonds also bid...

 

But again all that mattered was 2043.94... (YTD unch) - VIX tagged 16.00 and was quickly dropped to get S&P back over 2043.94...

 

Goldman was bid on a $5.1bn settlement... (imagine if it had been $51 billion?)

 

Stocks are beginning to wake up to the credit and bond decoupling...

 

Treasury yields ended the day practically unchanged - swinging from bid to offered in the EU session and rallying (lower yields) during the US session...

 

The USD Index ended modestly lower on the day but rallied back during the US session (after the EU close) after some shenanigans around the Silver fix time...

 

And finally, Commodities all ended positively (even copper just) but it was silver that stood out...

 

As the precious metal inched back towards the $16 level...

 

Charts: Bloomberg

Bonus Chart: With Alcoa kicking off earning season, we suspect this won't end well...

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FreeShitter's picture

LOVING my ABX, CDE, and HL so far this year. Buying phyzz with these profits has never been this easy

slaughterer's picture

The trade today was to fade the gap up, as tomorrow it will be to fade the gap down.  

Rainman's picture

AA up 4% on the day .... fancy non-GAAP footwork cometh.

thesonandheir's picture

Focus on EBITDA (easily befuddled investors take dick again)

chumbawamba's picture

The word "soars"...I don't think it means what you think it means, ZH.

I am Chumbawamba.

chicaboomboom's picture
chicaboomboom (not verified) chumbawamba Apr 11, 2016 3:34 PM

ONLY ONE WAY out of this malaise. FIX THIS >>> http://wp.me/p4OZ4v-3z

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) chicaboomboom Apr 11, 2016 4:01 PM

Lets see how bad Monkey Hammer Tuesday is...

Took Red Pill's picture

"Silver soars to almost $16!" (of course it was like at $48 five years go)

Big Corked Boots's picture

Even colloidal silver hasn't fixed my sores.

(yeah, I know, TMI)

tarabel's picture

 

 

Which made you blue.

Literally.

 

Here in Colorado, we once had a Senate candidate who used the stuff so much that he had, in fact, turned himself blue.

We voted for the red one instead.

zeropain's picture

tomarrow maybe the waterfall down.

stocks up everything else down's picture

agree on HL, have made a nice chunk of change on that one

FreeShitter's picture

I bought all three last year in nov, I bought in a little early so had to recoup some but jeez what a ride so far. 

Slomotrainwreck's picture

LOVING my ABX, CDE,

just sayin - my speculative no brainer JNUG is looking fairly awesome with a 5-bagger 3 month profit.

Xscream's picture

No 3:30 ramp up on a Monday. GEEEZ This is unheard of. Things must be really bad out there in algo land. 

nuubee's picture

Obama and Yellen were busy

KnuckleDragger-X's picture

Hmmmm....... Needs more fairy dust........

N0TaREALmerican's picture
N0TaREALmerican (not verified) Apr 11, 2016 3:12 PM

Stock up as earnings beat expectations.

NoDebt's picture

Red?  How the fuck did we close red??  This is bullshit.  I was promised!

 

KnuckleDragger-X's picture

Solly, remember when I told you I'd kill you last?......

PTR's picture

"I don't see what the problem is.  Just buy the f**cking dip."

what's that smell's picture

no matter how many time he falls off the cliff, that wiley coyote falls off another cliff.

the stock market is a machine generated cartoon but i always get upset for the coyote anyway.

KesselRunin12Parsecs's picture
KesselRunin12Parsecs (not verified) Apr 11, 2016 3:13 PM

So I guess this means JPM is gonna 'CRASH' tomorrow ~ lol

T-NUTZ's picture

Silver, Bitchez!!

brada1013567's picture

USDJPY just pushed through 108 and then dropped.

JamesBond's picture

108 is a resistance level. You should expect it to saddle for awhile

Huckleberry Finn from Texas's picture
Huckleberry Finn from Texas (not verified) Apr 11, 2016 3:21 PM

0.2% is slump?

 

Huckleberry Finn from Texas's picture
Huckleberry Finn from Texas (not verified) Hohum Apr 11, 2016 3:24 PM

Flat?

CPR Steps_30 pumps_2 breaths_then repeat's picture

Finally, the technicals are fully breaking down.... the short is inn... "its happening!"

DirkDiggler11's picture

Although my stacks did not grow larger just based on the PM price action today, they do shine just a bit brighter than they did yesterday.

Looks like we may run a good "chunk" higher on both Gold and Silver prices.

i_call_you_my_base's picture

Yellen probably leaked what she told Obama to do.

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) i_call_you_my_base Apr 11, 2016 3:30 PM

"Bigger isn't always better"?

Greenie's picture

At Yellen's age, "leaking" is something you do in your depends.

ramgold2206's picture

Fo fo dust is even better than fairy dust - the show must go on

http://ramgold.ilp24.com/18968

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Apr 11, 2016 3:29 PM

Market is less than 5% from all time highs and fear is at an all time high?  The pussification of America continues :(

vq1's picture

playing to "not lose"

 

instead of playing to win. 

Dg4884's picture

Headlines like this piss me off! C'mon Tylers!  I get all excited that my stash is fianlly worth something and they define silver "soaring" at 16?

 

Pfffftttt....

Herdee's picture

Time to devalue the Euro to parity.Never did see why that piece of shit was worth anymore than the U.S. Dollar.

the.ghost.of.22wmr's picture
the.ghost.of.22wmr (not verified) Apr 11, 2016 4:22 PM

Fuck you gold and silver manipulators.

 

If gold dips below $1,200 or silver dips below $15, I'm buying.

Quebecguy's picture

I'd buy if it was at $1500/ $20 if I were you...

 

best way to pay off debt is with hyperinflated dollars

backwaterdogs's picture

wtf...quit manipulating up....I'm still stacking

Watson's picture

>>>
As the precious metal [silver] inched back towards the $16 level...
<<<

And to think it was once USD 40...

Watson

Bastiat's picture

. . and to think it will be again!