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One Hour Later: Stop Hunt Over - Reality Reasserts

Tyler Durden's picture





 

Whipsaws everywhere. Gold and Silver soared back up to unchanged on the day and S&P 500 e-mini futures roared over 15pts higher off spike lows to take out the stops at the high of the day-session. EURUSD also dipped and ripped swiping aside everyone's stops (long and short). 60 minutes after the announcement of disappointment but hope to come, it appears the over-reaction to the knee-jerk reaction is being faded now as Stocks, Gold, Treasury Yields, and EURUSD are all falling now. The realization that Merkel's comments were simply fact and nothing new and the stop-hunt is complete provides some food for thought for all those buying this dip ahead of Bernanke's press conference. Beware now.

Gold and Silver wild ride...

 

and across other asset clasess - it was Gold and stocks that went full-retard...

as ES dipped-and-ripped and is now fading back to VWAP very rapidly...

JPM is holding its gains but the rest of the majors are leaking off a little from the over-reaction spike high...

Gold remains notably above its pre-FOMC levels as stocks have retraced to unch as have Treasuries and the USD.

Charts: Bloomberg

 


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Wed, 06/20/2012 - 13:43 | Link to Comment SilverTree
SilverTree's picture

The patent is dying.

Wed, 06/20/2012 - 13:45 | Link to Comment NotApplicable
NotApplicable's picture

Zombies are born dead, so it isn't really that debilitating of a condition.

Wed, 06/20/2012 - 13:47 | Link to Comment takeaction
takeaction's picture

Thank God my freeze dried food storage has a shelf life of 25 years.  This slow moving train wreck seems to be taking forever.  When does it go off the tracks?  This could could continue for another 5 years or more.  Oh well.  It is nice to be ready...now get off the computer and go enjoy your friends and family.  Oh yeah.   BERNANKE  FUCK YOU!

Wed, 06/20/2012 - 13:48 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

JPM's shares surging on the back of Extend-a-Twist.....must mean all of the free money is flowing their direction.  Well played!!!

Wed, 06/20/2012 - 14:50 | Link to Comment pashley1411
pashley1411's picture

At very least has a hacking cough.

Wed, 06/20/2012 - 13:44 | Link to Comment NotApplicable
NotApplicable's picture

All your speculation are belong to us.

Wed, 06/20/2012 - 13:45 | Link to Comment Element
Element's picture

Con-fidence

Wed, 06/20/2012 - 13:54 | Link to Comment vast-dom
vast-dom's picture

Con-Fed-ence

Wed, 06/20/2012 - 13:44 | Link to Comment I Am Not a Copp...
I Am Not a Copper Top's picture

STFR

Wed, 06/20/2012 - 13:46 | Link to Comment VonManstein
VonManstein's picture

not much life left in all this.

bonds and dollar will give up for risk assets soon enough.. final stop PMs

Im goin to get myself a nice cup of tea ready for the 2:15 bentalk

Wed, 06/20/2012 - 13:45 | Link to Comment William113
William113's picture

So much for a busy summer.

Wed, 06/20/2012 - 13:45 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

Do the opposite of the opposite and you get the same shit.

Wed, 06/20/2012 - 13:45 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Shake, rattle and roll baby.

Wed, 06/20/2012 - 13:46 | Link to Comment stacking12321
stacking12321's picture

Silver, bitchez!

Wed, 06/20/2012 - 13:47 | Link to Comment LawsofPhysics
LawsofPhysics's picture

And people still refuse to see the forest through the trees.

Wed, 06/20/2012 - 13:49 | Link to Comment Broken Window
Broken Window's picture

There's a raid on metals everytime Ben opens his mouth. BTFD.

Wed, 06/20/2012 - 13:53 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

There was a time where Bernanke's pie hole proved to be very uplifting to the metals....not any more as you stated. 

Wed, 06/20/2012 - 15:00 | Link to Comment Alpo for Granny
Alpo for Granny's picture

Funny..Schiff used to quip that he knew the Bernanke was speaking because gold was going up. The cartel has learned from this and now raid the metals every time he speaks.

Wed, 06/20/2012 - 13:50 | Link to Comment Splootch
Splootch's picture

Not surprising...the guy need 2 price at same time.

Wed, 06/20/2012 - 13:50 | Link to Comment Snakeeyes
Wed, 06/20/2012 - 13:50 | Link to Comment FranSix
FranSix's picture

Ok, so the Bank Of England is buying bonds, but says there's no QE, Merkel says they're proposing to buy bonds, but no bailout, the Japanese Central Bank on top of buying bonds is buying ETFs, the FOMC says they're engaged in the fabulously popular Operation Twist, but not QE per se, the Canadian central bank is launching into a bond swapping binge, the Italian Central Bank is borrowing heavily at 6% to buy 3% Spanish debt...

This simply has to be gold negative because its not really really really QE, knock on wood, right?

Wed, 06/20/2012 - 13:53 | Link to Comment SDRII
SDRII's picture

did I miss tjhe Qe from 1998 to 2007

Wed, 06/20/2012 - 13:51 | Link to Comment JackT
JackT's picture

if the market were a piece of metal being bent back and forth...SNAP!

Wed, 06/20/2012 - 13:51 | Link to Comment AccreditedEYE
AccreditedEYE's picture

Full Retard indeed... I continue to enjoy watching the intelligence of the equity market sink to ever more disturbing lows.

Wed, 06/20/2012 - 13:51 | Link to Comment tempo
tempo's picture

America is leading the world..in insane, unfunded entitlements and deficits. Yes we have growth industries...entitlements.

Wed, 06/20/2012 - 13:51 | Link to Comment midgetrannyporn
midgetrannyporn's picture

I wish I could get off this merkel-go-'round.

Wed, 06/20/2012 - 13:52 | Link to Comment falak pema
falak pema's picture

anybody who shorted the euro today got hurt by the looks of it. What gives.

Wed, 06/20/2012 - 13:51 | Link to Comment CURWAR2012
CURWAR2012's picture

delivering speed and barbituate alternating in 1 hour intervals willdrive the patient MAD

Wed, 06/20/2012 - 13:52 | Link to Comment Splootch
Splootch's picture

only 2 things remain...oil at low and u/j at high

Wed, 06/20/2012 - 13:52 | Link to Comment El Oregonian
El Oregonian's picture

Green shoots! no, wait... we still need more fertilizer. BEN! ... BEN!! BEN!!!

Wed, 06/20/2012 - 13:54 | Link to Comment Marginal Call
Marginal Call's picture

The ES is sitting at 1350.00, putting my sell position from yesterday 25 cents in the good had I held onto it.

Wed, 06/20/2012 - 13:54 | Link to Comment Hype Alert
Hype Alert's picture

Market reaction to non-news was just a software glitch.  The SEC will be right on that.

Wed, 06/20/2012 - 13:55 | Link to Comment dracos_ghost
dracos_ghost's picture

Fuck the markets. .25T$ in roughly 6 months is not enough now. Bunch of dilletentes. This is just flat out extortion at this point. Cut them(the banksters) off.

They can call this stuff "Operation Tampon" if they want but it's still a currency pump. It doesn't matter what headline number is spewed, the Fed speweth onward.

Wed, 06/20/2012 - 13:55 | Link to Comment whatswhat1@yahoo.com
whatswhat1@yahoo.com's picture

...and so goes the latest news from Dewey, Cheatham, and Howe

Wed, 06/20/2012 - 14:42 | Link to Comment shovelhead
shovelhead's picture

I interned there. Very good program on basic Muppetry

Wed, 06/20/2012 - 14:00 | Link to Comment jezzarayman
jezzarayman's picture

I looked at the charts and from memory the biggest sell off last year post operation twist was the day after, imho S&P 1320 by friday

actually just checked, S&P fell 80 points day after operation twist last year. 

Wed, 06/20/2012 - 14:00 | Link to Comment walküre
walküre's picture

Ok, we're done with the Greek elections, we're done with the FOMC statement and now we're looking at the abyss of NO IMPORTANT NEWS.

The bulls have run their course of "buy the rumor, sell the news".

Seems a no brainer to take the opposite side of the trade here and watch the long decline into fall, possibly with a massive sell off just before the elections like 2008.

No fumes left to grind this puppy any higher imo. Desperation and frustration are spreading. The feeling that we're trapped and at the end of our wisdom.

FED not announcing QE3 today was a big deal. Twist is useless garbage and the markets will respond exactly like they did in 2011. Twist doesn't create growth. Government is confined to operate within its means cannot provide stimulus to the economy. Private sector is depending on those rich government contracts to keep going or the wheels come off. Layoffs will pick up speed again and we're back to square ONE.

Nevermind that Europe's biggest economy Germany is showing signs of massive slowdown everywhere. China is already feeling the pinch.

They chose not to devaluate the currency further for whatever reason and the market will take a few days, maybe weeks to really figure this out and go from boom to full bust.

Wed, 06/20/2012 - 14:03 | Link to Comment AccreditedEYE
AccreditedEYE's picture

Amen brother.

Wed, 06/20/2012 - 14:39 | Link to Comment Village Smithy
Village Smithy's picture

My apologies but be careful with that thinking. With billions of ZIRP dollars sloshing around the market can easily grind higher on no news.

Wed, 06/20/2012 - 14:53 | Link to Comment walküre
walküre's picture

We'll have to wait for Mr. Bond to respond. If the flow into bonds reverses back to equities, you are correct. Bonds are more attractive than holding hot equity potatoes though. So much hype in equities and bullshit valuations is completely mind boggling.

The well is drying up it seems. Confirmed now 2 years in a row.

Wed, 06/20/2012 - 14:14 | Link to Comment J.Caesar
J.Caesar's picture

"Soaring and Roaring"; and I thought it was a quiet first day of summer

Wed, 06/20/2012 - 14:25 | Link to Comment geewhiz190
geewhiz190's picture

if i understand the FED's statement correctly, it sounds like no net expansion in their balance sheet as long term debt replaces shoter term debt that is sold or matures. so no real incremental increase. this may explain why bonds can't rally and utilities are pretty soft. if the dollar weakens further back towards the 80 level on the DXY there may be another 20 points left in the SPX. if the dollar does begin to rally again the spx upmove is over. PG is warning of what many of the big-cap names are going to feel-the impact of the dollar's move. still think gold can recover despite near-term chopiness.

Wed, 06/20/2012 - 15:05 | Link to Comment world_debt_slave
world_debt_slave's picture

did someone say Hunt bros.

Wed, 06/20/2012 - 15:28 | Link to Comment Nobody For President
Nobody For President's picture

The chart looks like the Market took a humoungous speedball around 12:30 - the horse kicks in first and hard, then the speed takes charge for awhile, then the horse gradually mellows it down. Seems bout time for a damn nap real soon ... 

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