S&P Loses 2,500, Gold Tests $1300 As Fed Flattens Yield Curve

Tyler Durden's picture

As Yellen's press conference began, Gold and stocks legged lower, taking out $1300 and 2500 respectively..


As we detailed earlier, the dollar spiked higher and the yield curve spiked lower following The Fed's hawkish statement. 2Y yields hit their highest since Dec 2008...


As December rate hike odds jumped to 63%.. so still not completely buying The Fed's plan...


The dollar spiked...


But the yield curve cracked notably flatter... as the long-end was unimpressed.


This is not what The Fed, or the banks, were hoping for. How long before bank stocks wake up?

This is the biggest flattening in 5s30s since Dec 2016.

For now, gold is down, the dollar is up...

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This is it's picture

It's mega hammer time! Anytime! All the time! 

spastic_colon's picture

why'd you have to change the headline ZH?? its was just fine before.

New Headline - "S&P 500 Regains 2500 blah blah blah"

auricle's picture

Haha! Sell everything and watch the paint dry. Markets are not liking the tightening talk. Gold to make a sharp reversal from here to new yearly highs. Good luck with that balance sheet unwind. I am sure the banks don't need the backstop.

Stuck on Zero's picture

Dutifully, gold falls whenever the government speaks. Kind of like the applause from a group of sycophants.

Dame Ednas Possum's picture

Sorry guys... my bad. 

The fall in PMs is my fault... I bought a 1 x 1oz Au Eagle and 15 x 1oz eagles/ buffalos a week ago. 

Happens every time.

It might also have something to do with the BIS releasing 500 tonnes... up from zero the previous year and the highest amount since they started reporting swaps in 2010. 



ronthefisherman's picture

And the Chinese keep laughing as they load up on cheap physical gold.

Read yesterday that Australia produced 230 tons of gold last year ...

China purchased 232 tons of gold from Australia last year.

They know how to wring every last ounce out of the Aussie miners.






Clock Crasher's picture

Called it

1,299.99 Gold Stop Hunt

Trade down to  1,280 handle tomorrow


NK nuke headlines next week get us back above 1,300

Miners and GSR going down for a dirt nap

Clock Crasher's picture

GSR to da moooon

lets take out the 80 handle and send First Majestic into the 6's

Scuba Steve's picture

First Majestic to 8's by Oct expiration ... mark it down.

ParkAveFlasher's picture

Makes sense, I just went all in miners.

Clock Crasher's picture

You need balls of steel to ride out this bull market.

I think the worst is over but miners and silver are not in bull markets, neither is Gold.

Time is on your side.  Might have to sweat out a year, max.. who knows.  7 year bear market makes as much sense as a 6 year bear market.

ParkAveFlasher's picture

I'll just have to avoid showing my wife the trading account stats until then.

"Honey, you have to understand, I have balls of steel!"

NoDebt's picture

Uh oh, Janet crushed the yield curve.  Wonder how long THAT'S going to last before it causes somebody acute pain.


tmosley's picture

Peanutz getting shucked and devoured again.

Dame Ednas Possum's picture

Hey look... it's Mozo the Clown kids!!! 

Let's all sit back and laugh as he performs his favourite trick... regurgitating the fresh shit he devours daily. 



tmosley's picture

Why would I devour your investments and opinions when I have an unlimited supply of your salt?

lester1's picture

I still can't get an answer, who's going to buy $50 billion a month a worth of  toxic assets from the Fed ????

syzygysus's picture

The Fed, through Belgium.  There, I fixed that.

Banana Republican's picture

Wonder what the Pentagon does with all that black budget money?

Clock Crasher's picture

"who's going to buy $50 billion a month a worth of  toxic assets from the Fed ?"

Primary dealers.  They will use their excess reserves.  Then they will charge pensions commission to have their savings plans stuffed with said toxic waste.

Mo money mo money mo money.

Clock Crasher's picture

Or Citi will make a 5 billion deposit (loan) to GS

JPM will then take a 50 billion dollar loan from GS and buy the toxic waste

Then JPM will sell them at a premium to John Q public's brokers

Winning mother fuckers

Scuba Steve's picture

401k instruments for the sheep dont you know.

the new instruments are called "Easy come, Easy go".

kind of circular event the PPT/Fed/Sovereign CB's have going.

in the end, sheep own the garbage.

In the end ALL roads lead to Gold.

buzzsaw99's picture

i don't want to hear about janet's yield curve spread crack bitchez.

loves the truth's picture

and they are monkey hammering gold and silver,,, give away prices

1stepcloser's picture

Load up where you can.... the wheels will be coming off this shit show sooner or later

MansaMusa's picture

:: I'm grabbing a few more oz silver and g of gold , using a credit of 3% cash advance/balance transfer.  US Treasury can shuffle and so can I !  Stack on !

Mustafa Kemal's picture

" I'm grabbing a few more oz silver and g of gold"

Did the same last week. Petrodollar plunge protection. 

Yes, stack on

Money Mantra's picture

Give away prices?? You aren't trying to manipulate are you?

harrybrown's picture

Hence I'm working as much overtime as I can & backing the truck on every few weeks,
food, water & essentials already taken care of, all thats left is put into metals

*give away prices*

Indeed, every crisis also presents an opportunity!

Seasmoke's picture

Mr. Yellen you worthless cunt. Stanley Fischer laughing somewhere in Isrealhole.

GlassHouse101's picture

Full speed to the cliff's edge, Janet . . we can make it!

adolphz's picture

There is absolutely no way shep wave used their analysis alone to know exactly how the markets would react to fed tody. I am not complain  but seriously.  It is all rigged.

Money Mantra's picture

Dude SHEPWAVE is always crushing this market.  But I have already taken profits from today. Next please¡!!!!!

Snaffew's picture

then why even post here...run with your supreme leader.

Snot Boogie's picture

I like the creativity shown in this plug for shitwave.  I mean, throwing in the 'rigged' statement must really strike a chord with ZH readers -- good job!  You deserve a raise from those guys, supposing it isn't a one man show.  

Snaffew's picture

yup...just like your bullshit interpretation of Shepwave's ambiguous "analysis".  The market can go up, down or sideways and shlepwave would be "right".  They are worthless.

BSHJ's picture

You mean the Shepwave call this morning saying that there would be a 'pop and drop' with the announcement......I seem to have watched the exact opposite of that call.  (but Shepwave will still claim they nailed it)

Seasmoke's picture

This dried up cunt never would have done this if the other dirty cunt was the President. That's all you need to fucking know.

Mewa's picture

oil fracker are going to get crushed....get out of Texas.....

Overleveraged_and_Impatient's picture

Oh my goodness when will people learn. You REALLY think they're gonna allow some big drop on the day that Yellen touches the Mic? I bought the dip below 2500 and now I'm back in the green on the day. This market is too easy.

tropicthunder's picture

Gold getting fucking WHACKED again should be no surprise here. Like I said before, all of the OldBugs who came out 2 weeks ago foaming at the mouth bullish should have known that Da Boyz would be nailing the shit out of gold in due time. Then there's BTC which has ASS BLASTED right back over $4000!! UN-FUCKING-BELIVEABLE. Enjoying every minute of this....

Lego Brave's picture

Im buying for another 45 years. I asked for lower, they delivered. Pay attention.

Racer's picture

PPT spinning the plates like crazy today

Games Without Frontiers's picture

Wow, stocks almost in danger of having a red day here. You'd think with a market built on Central Bank monetary policy, the biggest central bank in the world announcing they were tightening policy would send stocks into a little more of reaction. But what do I know, clearly not much. Just another Groundhog Day.

Racer's picture

They have got to show that the 'markets' do not care about what the frauderal reserve is going to do!

Thethingreenline's picture

Smellin Yellin!