Gold's Surge, Stocks Purge, And Treasury Yield Records Emerge

Tyler Durden's picture

The market was anxious going in to the NFP print but once the dismal data point hit, things deteriorated rapidly.

Pre-NFP ->EUR 1.2322, ES 1292, WTI $84, 10Y 1.51%, 30Y 2.59%, gold $1554

Post-NFP -> EUR -10pips 1.2312, ES  -10 1282, WTI -$1.2 $82.8, 10Y -5bps 1.46%, 30Y -7bps 2.52%, gold +$18 $1572

Treasury yields at record lows (10Y well below and 30Y right at Dec08 lows) as Gold pops (QE hope?) but stocks don't for now (reality of QE's inability to really help?). Oil down on global growth markdowns and EUR modestly weaker (choppy but practically unch now) - though looks like its all relative printing expectations now.

Gold vs USD vs Stocks vs Treasury Yields

Gold and Silver outperforming...

Treasury rates are just plummeting...30Y -32bps this weeks!

It seems the SNB has been active as EUR/JPY explodes in a choppy mess...


Charts: Bloomberg

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disabledvet's picture

Jamie Dimon trying to save his job more like it.

slackrabbit's picture

Wow - did some just happen while i built my new pc - i knew i shouldn't have done it today - and the queens long weekend to boot.

Should make Tuesday interesting

Conman's picture

Futures off the lows! QE trade already on? Unbelievable.

bshirley1968's picture

When that is ALL there is or the ONLY game in town, it has to happen with regular frequent occurrence.  I am not talking about QE, but rather the HOPE of QE.

Captain Kink's picture

This is exactly the news that "forces" QE. And how long will the morphine high last this time? 

franzpick's picture

Nixon, Carter and others dealt with their emergencies using Saturday announcements, but this credit collapse may require an entire weekend at bernies, and will require a complete credit-equity market seizure.

Common_Cents22's picture

not unbelievable.   in the world of HFT, minutes is an eternity.

realtick's picture

By putting that inane bubble around your charts you are making Joe Weisenthal and Business Insider look good.

Is that what you want?

dereksatkinson's picture

The stock market isn't as oversold on an intermediate term basis so stocks wont benefit as much.  Gold has been down for 4 months in a row and has been deeply oversold.  Gold had HUGE spec short interest and HUGE commercial short covering. 


I guess my point is...  As much as everyone wants to say the markets have been correlated, they haven't been.  The magnitude and duration of corrections have been different.

disabledvet's picture

Who knew a positive jobs print could be so devastating! I can't wait for plus 1000!

YC2's picture

Id say about 10% more downside before I start scaling into stocks in my hostage 401k money.

Debtless's picture

Fuck QE and all of the people who need it to sustain the status quo.

Itch's picture

DAX down 4% now, now thats pain!

Conman's picture

And us futures barely down 1%, what's wrong with that picture

SheepDog-One's picture

Exactly....we're supposed to see confirmations tht 'QE3-4-TheBigOne' are now here, yet we're STILL only 5% down from highs? They can show a few -5% down face melting days in a row before I'll buy any of this 'QE comin any second' nonsense.

junkyardjack's picture

I totally agree, how can 5% off and being basically flat for the year drive QE3.  I think unless the market totally unhinges in the next 3 weeks Bernie won't have any ability to print.  The way commodities are collapsing I expect the market to follow the trend soon

SheepDog-One's picture

Yea! Still UP for the year! This little action isnt the 'QE crisis' not by a longshot.

Conman's picture

And us futures barely down 1%, what's wrong with that picture

Arisu's picture

Yeah. The insolvency procedure of one of the largest drugstore chains "Schlecker" has failed and their staff consisting of about 14,000 employees will all be laid off within the next 4 weeks, and the 2800 stores are closed down.

RazorForex's picture

The technicals were screaming long gold since yesterday!

Swarmee's picture

Your hindsight post has post-predicted this perfectly! Amazing! How do you do it!?

RazorForex's picture

video was posted yesterday, NOT it hindsight!!!

Swarmee's picture

"august profit target of 1590/1600" and current spot price is 1588, what an amazing delta to grab, $2. Also the immediate spike on NFP shows this is not a technical gain but a knee-jerk anticipating QE, still not seeing any correct prediction based on technicals, more like luck on NFP reaction.

OhOh's picture

Yes excellent prediction. As was Screwtapes ,


"Here's the $GOLD:$CRB index from last post, which was discussed a bit in the comments. Breakout? A few more up days, and it will certainly start looking like the next big move for gold as a safe haven is upon us."



bshirley1968's picture

Off topic, but so indicative of the day.  The Irish (their leadership) has just voted to stay on the Titanic.......and they are CELEBRATING!  Of course one look at Irish history would have told you this was to be expected.

digalert's picture

I love the smell of Napalm (QE) in the morning...

jimmyjames's picture

as Gold pops (QE hope?)



Default risk amped up--same as it's been since 01-

This is how a strong currency trades in a deflationary environment-

mayhem_korner's picture



But...but...but...CNBC said gold was no longer safe.

Infinite QE's picture

Anyone that listens to what CNBC says deserves the arse fecking they get.

RockyRacoon's picture

Some people like that sort of thing.  Not saying I do, nor am I saying there is anything wrong with it.  Just pointing it out... so to speak.  Maybe I should quit now.

monopoly's picture

I guess the question is can the inmates wait till the June meeting to announce some QE bullshit which will put a bandage on the gaping wound for a few trading days until the patient goes back into a coma? Going to be an interesting first day of June folks. Buckle up.

Roland99's picture

EURUSD on a jackhammer of a pogo stick.


Airdude : Getting below 700 now, still going down. 675, 650, 625, he's holding. . .no, no he's down, he's down.
 Kramer : Sound your alarm bell, now.
 Attendant: Alright now everybody, get in crash positions
 Kramer : Put down 30 degrees of flap. Striker now listen to me
 Remember your brakes and switches, get ready to fly it out . . .
 Airdude : He's all over the place, 900 feet, up to 1300 feet . . . what an asshole.
sawman's picture

Well Mr Munger/Buffett - Buy stocks avoid barberous relic gold - Hows that working out for you then.

Satan's picture

PPT is a go.

MFL8240's picture

Obamas economy is doing great after  6 triliion in handouts to his followers. The joke is coming to a head!

brooklynlou's picture

Wait till the leveraged buyout on the back of a European fire sale occurs. All those trillions of dollars collected and stored as cash in corporate coffers will be used to basically own Europe.

Somewhere Bernake, Bush and Obama are having breakfast, ribbing each other and going "I drink your milkshake! I drink it up!"

caimen garou's picture

they always looking for me pot of gold,he he he he!

SheepDog-One's picture

Show me a few -5% down days in a row and then MAYBE I'd believe some of this 'QE surely coming any second' nonsense.

midgetrannyporn's picture

the bernank is a pig.

XtraBullish's picture

XtraBullish yesterday on June Gold at $1558, July Silver @ $27.18 and 400 Goldcorp July 38 calls at $1.90. Thanks Tyler - I owe you buddy!

Gold IS the last standing 'safe haven" despite what all these mutts are quacking off price gold at $3,500/oz against all that Eurozone (and U.S.) debt and collateralize the paper with the tonnes and you have the solution. The tonnes are FINITE and the Euro/U.S. debts are FINITE so the only VARIABLE is the PRICE of gold.

Coming soon to a theatre near you.....

ArrestBobRubin's picture

Bill Murphy of GATA just pushed this update out. I trust he won't mind me posting it for ZH readers.... See Le Metropole Cafe

Le Metropole Members,

RARELY do I send out an email alert, but since I have not
seen anything like this in 13 years, I thought it advisable.

The US jobs report was a disaster, not even aided by
a substantial increase in the birth/death model. The
DOW is called 180 lower, the euro is tanking, but gold
is SOARING and has the general investment world stunned.

Will get into this in MIDAS later. The point is this
is the time to be paying attention to what is going on out
there. What is occurring in gold in terms of its action
of late, and today, is  unprecedented, at least in terms
of me watching the price action every day for over a decade.

Chaos not only looms, you can smell it. The Muppets on
CNBC are as dour as they can be.

brooklynlou's picture

Europe is done. Toast. The panicked movement to any safe haven is starting. US bonds are tanking (people will take whatever Bernake will offer them), German and Swiss bonds are negative (you pay THEM to not steal your money). Gold will rise temporarily while the fuse is hissing. Once the boom happens, gold will tank hard.

caimen garou's picture

plunge protection team wont allow -5% for any length of time!

Stock Tips Investment's picture

I think both the fundamentals of the global economy (mainly in Europe) as well as technical indicators seem to point out that the stock market continue to fall before it starts to rise. As this goes against Bernanke's plan and increases the risk of the destruction of the Euro, it is possible to see the Fed and ECB trying to take desperate measures (QE3?). In any case, there are great opportunities to make money with these trends.

caimen garou's picture

plunge protection team working on it as we speak

SheepDog-One's picture

Just show more how 'QE comin now' is just a fantasy....emergency PPT rescue ensues. Go ahead and drop it 5% today Ben....or I just call total BS on the QE rumor driven market.

junkyardjack's picture

Gold being manipulated up, don't fall for the trap

lakecity55's picture

I'm very long in PMs. It's fun to watch it take off, though.

RockyRacoon's picture

Worth a repeat:

Here is an emblematic photo from about 1913 or so.   The caption reads, "Washington, D.C. "Storm damage. Between 1913 and 1918." Somewhere under all this rubble, I suspect, is a narrative waiting to be unearthed by a Shorpy history detective. Harris & Ewing Collection glass negative."

Here's the link:

Note the building facade is propped up with a few lengths of lumber.   The entire building is destroyed, but the "image" must be maintained.

It's the story of the U. S. since the 1913 era -- Federal Reserve System established.