Market Commentary: What An Ugly, Ugly Day

Tyler Durden's picture

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No One's picture

good news folks.. the senate will be investiagting the S&P downgrade.. All is good.

 

"FLASH: Senate Banking committee probing S&P downgrade of U.S. credit rating -aide"

 

 

Long-John-Silver's picture

I hope they use a prophylactic while their probing. They have spread too much to too many already.

max2205's picture

Somebody needs to probe congress for 4 - 20 years of financial mismanagement

cocoablini's picture

The Senate? They are going to threaten the SP for telling the truth...for a change??? CANNOT tell the truth-just like them

oogs66's picture

congress should be investigated

Long-John-Silver's picture

Silver will follow Gold soon. You can't have one without the other.

Spitzer's picture

Im all in support of the silver bugs but if you don't own any gold then you are asking for a kick in the nuts.

Long-John-Silver's picture

I am diversified, I own both.

Sudden Debt's picture

9 to 1 silver vs. gold in value.

So I would like my silver to rally a bit harder. But I've got time on my side :)

People will start to panick. Panick hard. The market isn't going to react like after QE2. And everybody will first try the QE2 bets, fail and run for the hills when they hit rock bottom. And they'll try to recover losses in gold in silver which will be 50% before they'll try it.

And then BOOM!

Funds will need to cover their losses and go for security : Gold/Silver

...

Little memo to Bernanke: YOU FAILED! YOU FAILED YOU FUCK! HAHAHAHAHA!!!

 

Re-Discovery's picture

The fight in silver --- industrial vs currency -- is about to be resolved in fovor of currency.  All who missed the Gold move will go looking for something else.

Gold will drag silver higher.

As for volatility, silver behaved very well today after an early day sell-off.  Held its 38.7 support very well.

Jendrzejczyk's picture

After an initial reaction of "WTF, why isn't silver going to the moon", I realized that just holding in place while the financial world crashed around it was proof that silver is a solid store of wealth.

Jendrzejczyk's picture

Let's not forget the heckling that gold and silver are just commodities that will sell off with the stock market just like they did in '08.

Re-Discovery's picture

remember, silver still went up about .6 from friday close.  which equates to a $25 gold move.

one of the few days silver hasnt outperfomed

Fancy Bear's picture

In my car today I heard someone interviewed on NPR who stated that gold is a currency since it isn't consumed like food or oil. The concept is only finally hitting mainstream America. To me, $1750/oz is still a bargain.

zorba THE GREEK's picture

One year ago August, silver was $18 and gold was over $1100.

Big spread. I bought several 100 oz bars because I knew it would catch up.

Re Dis is right, gold will always drag silver higher, just wait for big

spread to maximize profits, especially if you are cashing out gold to buy.

tyler's picture

If you don't own any silver you won't be able to do things one day you only dreamed of.  I swapped my gold for silver a few years ago due to the fact I want to retire and didn't have enough money in gold to do so.  I hope all metals go to the stratoshphere so we can stick it to society.  I don't really mind a kick in the nuts, this is fight club.

Spitzer's picture

Swapping gold for silver sounds like a speculative bet to me. I wish you well, our interests are aligned, we want the easy money, douche bags to get kicked in the nuts.

Thomas's picture

I wanna be an easy money douche bag.

lawrence1's picture

Agree, both. As Sprott said in a recent interview, he believes that the manipulation is directed now toward silver as a means of discouraging gold purchases. Might be a good time to trade some gold for silver as the ratio is now 44-1.  I believe it will resume its downward trend soon. 

 

Ponzi Unit's picture

bought a little more today.

lawrence1's picture

Agree, both. As Sprott said in a recent interview, he believes that the manipulation is directed now toward silver as a means of discouraging gold purchases. Might be a good time to trade some gold for silver as the ratio is now 44-1.  I believe it will resume its downward trend soon. 

 

Spitzer's picture

XAU was green all morning, down on the close.

Turd Ferguson's picture

Gold.

Silver, too.

Chief KnocAHoma's picture

Luv the Turd!

But don't forget land - with water - house - game - in the right area.

http://sotcksdairyroadfarm.blogspot.com/

I am The Chief

InconvenientCounterParty's picture

platinum is screaming something, but I can't quite make it out.

wombats's picture

Who cares about Platinum.  What about Plutonium at Fukoshima?

trav7777's picture

it's saying the same thing oil is

redpill's picture

I loved the little failed stick save attempt by PPT in late trading that got buried.

LMAO's picture

My sentiments exactly.

That surely was a notable effort on the SPX, a 25 pts. pop after a 75 downmove followed by a 40 pts. smackdown.

BTFD!

Iam_Silverman's picture

"I loved the little failed stick save attempt by PPT"

<sarc> Well, I heard that it was a resurgence by the retail investors once they finally digested the Presidents speech and realized that he was reiterating the need to "tax the rich".  This was their way of showing approval.  </sarc off>

Mr. Poon's picture

"I have no idea on the next move."

Obviously, you don't think like the President, or you would know that what we need next is another inspiring speech.

brew's picture

no idea just like every other "expert" ou there...soft patch?

ElvisDog's picture

The market sold off after Obama's speech, because it made it even more clear that he has no answers. A new deficit reduction plan in a few weeks. Great. Calls for an extension of the withholding decrease. Fabulous. It's Kevin Bacon from "Animal House" telling the crowd "All is well".

andybev01's picture

Speaking of 'a few weeks', are the good men & women still on (their 5-week) 'vacation'?

citta vritti's picture

Let ‘em serve half time (that is, half of the half time they already serve), or restrict the scope of their legislative duties as the Constitution intended. As has been oft and truly said, “No man’s life, liberty or property are safe while the legislature is in session.” Judge Gideon Tucker, Final Accounting in the Estate of A.B.

Referenced here: 

http://www.barrypopik.com/index.php/new_york_city/entry/no_mans_life_lib...

arizona11912's picture

I wonder if its possible to have the margin requirements increase for Silver without creating a rush for delivery? Can anyone comment about that? Thanks

arizona11912's picture

I wonder if its possible to have the margin requirements increase for Silver without creating a rush for delivery? Can anyone comment about that? Thanks

arizona11912's picture

I wonder if its possible to have the margin requirements increase for Silver without creating a rush for delivery? Can anyone comment about that? Thanks

Iam_Silverman's picture

"I wonder if its possible to have the margin requirements increase for Silver without creating a rush for delivery? Can anyone comment about that? "

Yes.

Ghoaster's picture

Obama did seem sad in his little tele-speech today, bummer. NOT!

Long-John-Silver's picture

It took two days to get over the ass kicking the S & P gave him.

When he did get his act together and present a "straight face" on TV the market took it's turn kicking him in the ass as he was speaking by dropping below 11,000.

NeroAmerika's picture

And if people were smart, they could have made a quick buck or two.  Everytime Obambi gets on TV the markets take a dump, easy money.

mynhair's picture

Oweblahma:  cue that 'deer int the headlights' pic.

Ponzi Unit's picture

downside of being a GS employee

mynhair's picture

Any info on that wierd volume drop in SPY?  Was watching the 5-min chart, and the vol died around 3:35p.  Related to the MS outage?  And is MS the only trader of SPY?

max2205's picture

What a great article. Thanks

Many have their convictions on hold. Praying for a quick deep selloff so they can get well on a short skullfuck rally