Bitcoin Rips, Banks Dip As Fed Crushes Yield Curve To 10-Year Flats

Tyler Durden's picture

The yield curve collapse means nothing...

Don't sweat it...

 

While Trannies ripped higher, the rest of the equity market hummed along the unchanged line in a narrow range... (NOTE the weakness toward the end of the day which seems to have been catalkyzed by reports that Trump met with John Taylor re: fed head)

 

The S&P dipped to unchanged on the week...

 

The Russell 2000 has gone nowhere for 9 days (after ripping 12% higher in the prior month)... (1509, 1511, 1508, 1512, 1510, 1504, 1508, 1507, 1505)

 

The banks with earnings today both stumbled...

 

Financials underperformed as the yield curve kept collapsing since FOMC...

 

But Retailers rout was the worst on the day...

 

The Trump Tax trade continues to fade...

 

Treasury yields fell once again today... (strongest 30Y auction in 2 years)

 

And just like everything else, reversed their trend from China's Golden Week...

 

But Copper's recent relative strength to Gold prompts Gundlach's favoite indicator to be uber bond bearish...

 

As we noted earlier, 5s30 has now collapsed to its flattest since the start of the last recession...

 

The Dollar Index reversed early gains to end unchanged as the post-Golden Week trend continues...

 

Cable has been the biggest driver of US weaknes this week though Yuan strength has also weighed...

 

Gold jumped overnight to $1299.80 before fading back on PPI before bouncing back higher after Europe closed...

 

WTI/RBOB were lower after IEA forecasts that market balance sowuld not occur next year and by a surprise build in gasoline inventories...

 

In the 5 days since China's Golden Week Holiday ended, Bitcoin has soared over 20% (9% today), hitting a new record high today at almost $5400...

 

Finally, it may be noteworthy that Lumber futures prices were limit up today to their highest level in 13 years...

The last time we were here it was not a good signal of things to come!

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jamesmmu's picture
Will markets be nationalized in the next crisis? Alarm bells are ringing for stocks. Gold is “on sale” but how will it perform in a global depression?

http://investmentwatchblog.com/will-markets-be-nationalized-in-the-next-...

FreeShitter's picture

Pento says Next year it all falls apart. Think he's been saying that for 4 years now.

Clock Crasher's picture

All Gold Bugs and Stock Bears have been thoroughly and fully discredited.

It's humiliating to be frank.

HRClinton's picture

That is probably because both PM (expensive commodities) and stocks are CENTRALLY MANIPULATED.

What's that old saying again?  Ah, yes... CAVEAT EMPTOR.

 

tmosley's picture

Bitcoin exchanges don't close for weekends, holidays, lunch breaks, or anything.

Though I guess banks and such might, so it is hard to get purchasing power into the system on a holiday.

covfefe MICdotard's picture

Yeah ~ They only 'go down' mysteriously when there are huge runs

 

https://www.rt.com/usa/392019-bitcoin-3k-coinbase-outages/

tmosley's picture

Coinbase is shit and your opinions are shit too.

Watch out or VD might eat you for your PM content.

covfefe MICdotard's picture

So where do you go? Mr. "I'm the unhappiest gazillionaire on the planet because all my windfall wealth has taught me nothing except to insult people"

Ignorance is bliss's picture

Yep..Said the same thing prior to the crash of 1929. These situations are cyclical and repeat...cause we don't learn.

On October 29, 1929, Black Tuesday hit Wall Street as investors traded some 16 million shares on the New York Stock Exchange in a single day. Billions of dollars were lost, wiping out thousands of investors. In the aftermath of Black Tuesday, America and the rest of the industrialized world spiraled downward into the Great Depression (1929-39), the deepest and longest-lasting economic downturn in the history of the Western industrialized world up to that time.

holgerdanske's picture

If you  are  one step ahead of the crowd, you a genius.

But if you are two steps ahead, a crackpot.

 

So we might be early, but the end result is a given. Just the timing is in question, because most people cannot/will not see what is going on

HominyTwin's picture

You do realize that gold was up today, right? I mean, should at least save the snarc for a down day. It will have more effect and you won't sound clueless.

overbet's picture

dabbling in this ICO if anyones interested. Neat idea to throw a little btc profits at on a freeroll

 

https://www.hedge-crypto.com/

FreeShitter's picture

Clif says 6.3 then a pullback...we will see.

covfefe MICdotard's picture

Say hello to Signore Fibonacci

Clock Crasher's picture

Silver:Gold above 70 - 3 Years and counting

tmosley's picture

And yet they are produced at almost the exact same rate.

Insanity.

lester1's picture

Andrew Hoffman - 1

Peter Schiff - 0

 

Nothing can stop Bitcoin.

FreeShitter's picture

Wait didnt you say BTC was a scam? You change your tune?

Clock Crasher's picture

I know I did.  I also know I'll never buy another piece of metal as long as I live.  Maybe some gold stocks with throw away money that cost less than 5  dollars.

Only thing that spooks me about bitcoin in particular is -how is that there are only winners and no losers?  It looks like in a zero sum game where anyone and everyone who touches it is looking at early retirement. 

secretargentman's picture

I touched it and I'm not retired yet. Here's hopin'...

Rock On Roger's picture

All winners and no losers sounds ponzi to me.

AGAU's picture

Gosh, after reading your thorough analysis I have decided to abandon this entire phenomenon by selling all my cryptocurrency. 

tmosley's picture

The bankers are the losers.

Well, them and the oldbugs.

AGAU's picture

Oh there are losers, Jamie Dimon is one. Central banking is another. Bitcoin is de-central banking. It is the antithesis of what has been our enslavement.

Utopia Planitia's picture

You forgot to add the "/sarc" at the end.

lester1's picture

The only losers are people that don't buy Bitcoin in the first place. 

HominyTwin's picture

Just like the stock market, which is why it's so dangerous. Everyone is winning at the same time when the market is going up, and everyone is losing at the same time when market is going down. That is why it takes a dedicated central bank to keep it going. There is no offset, like with derivatives, even though people say they are more dangerous. Well, they are to the individual, but to the economy in general, zero sum games are better.

jamesmmu's picture

I dont think BTC is a scam, but its overhyped and trade is too crowdy. Even a great company can be great short when its overvalued.

 

I recommend ppl to buy BTC when it was less than $1000, and now asked same ppl to take profit, but all I hear is fuck off or will wait a bit more etc...

 

the concept of BTC is great but the trade is getting too crowdy, very risky. in fact, most of trades in this market is getting too crowdy and risky, return not worth of risks. yes, it will still go up, but potential of upward is much less than downside risk.

If tonight's China's import data missed badly, I will add short position tomorrow morning again. shorting RUT.

 

holgerdanske's picture

When Bitcoin corrects, or prints, or splits or whatever, and people get scared, really scared, what are they going to do?

Gold is money, everything else credit! and that means a promise, and you know what promises means to most people when there is no way out!

Yeah, I know, sorry!

 

tmosley's picture

Corrections are getting progressively shallower and shorter.

And Bitcoin is NOT credit. It is money, and was made in such a way such that it could fulfill all the characteristics of money.

covfefe MICdotard's picture

"Corrections are getting progressively shallower and shorter'

 

The last one dropped the price from 5,000 to 3,000 (40%).

tmosley's picture

Yeah, and before that, the corrections took it down 80% and 90%.

Pay attention, retard.

Or better yet, leave, ban evader.

covfefe MICdotard's picture

OK ~ Here's a different kind of question.

 

Let's say that both of us were just sitting at a bar and this kind of conversation came up.

 

Would you reply to me (or any other stranger for that matter) "Pay attention, retard & get out of the bar while you're at it!"

 

I hope the bitcoin price keeps going up because I think that you're gonna need that private island someday.

tion's picture

ET phone home?

I'll bet I could shitpost to your face IRL (with a smile) and you wouldn't even mind :)

He's just weilding some backwards Teemo poison darts that, instead of blurring your vision, he and some of these other crypto boys are trying to get you to shed some of your cognitive biases that are not benefitting you. We may get through the other side alright but there may be some serious pain coming, diversifying a little into crypto is not foolish.

As for me, I am still trying to figure out how to best farm the btc from the very early adopters that are starting to up their spending.

Rebelrebel7's picture

Going nowhere fast at full speed ahead!

adolphz's picture

Good calls again on Shepwave  but they really should have published a update for intraday. Still long gold short term?????

Traderone's picture

They did publish an update, they said for you to go Fuck yourself.

Latitude25's picture

I tried to use bitcoin after Irma when there was no electricity.  People just laughed in my face.  Then the electricity came on and they still laughed.

FreeShitter's picture

You could at least lie a little better.

covfefe MICdotard's picture

You'd think that somebody from Houston could have started a 'GO FUND ME' kinda deal to help hurricane victims. But, alas, still, not a peep on that site since May

 

https://www.meetup.com/houstonbitcoin/messages/boards/

Latitude25's picture

Oh yeah?  When was the last time you bought gas or groceries with bitcoin?  Or is it a store of value?  LOL  You're saving for a rainy day.

FreeShitter's picture

I dont as I dont have to, I also dont buy gas or groceries with pm's  and I also dont come up with stupid shit like you just said either...

Latitude25's picture

So your waiting for a greater fool to drive the price up?

secretargentman's picture

I'm waiting for it to become the new world reserve currency. All 15 of my satoshis are well positioned for that. 

covfefe MICdotard's picture

Waiting for that buy on that private island for hosting future cocktail parties for Blackbeard & his nautical Somali posse.

covfefe MICdotard's picture

wouldn't be easier just to hang around outside Weinsteins office door?

toknormal's picture

I've lived off bitcoin for a whole summer. Paid ferry tickets, car hire, restaurant bills, you name it - basically anywhere Visa is accepted. You store the value in bitcoin and then spend it using a bitcoin backed debit card which works across the entire worldwide network.

Perfect combination.