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"Phase Shift" - JP Morgan Downgrades All Commodities To "Sell"
If the ECB will not take the hint, JPM will bring the mountain to Mohammed. Or something. In a note just released by JPM's Colun Fenton, the firm has downgraded the entire commodity complex to "underweight" (yes, that includes gold). The reasoning? It is all the Supercommittee's fault. It also likely has nothing to do with the fact that JPM was selling commodities to clients all through this run up, and is now in finally buying, in anticipation of ECB printing and Fed's LSAP. Full report attached.
Summary:
- The US Supercommittee’s failure changes risk outlook: the primary implication is damage to confidence in the US’ seriousness of purpose and the cost of that attitude. Markets must price risk of more credit rating cuts.
- US public debt is $15Tn (100% of GDP) and growing: Since S&P cut the US sovereign credit rating four months ago, the US public debt has grown by $455Bn, an amount larger than Greece’s sovereign debt.
- Industrial metals and softs are deteriorating rapidly: incremental damage in physical metal and crop prices has unfolded worldwide since
Thursday, when it became clear the Supercommittee would likely fail. - Change in view: Policy failures in the US and Europe have darkened the 6M outlook, forcing us to downgrade commodities to underweight. We expect outright TR losses near-term and see greater value in bonds
Full report:
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Whipsaw bitchez
More nefarious that a whipsaw....
Call Armageddon, world comes to end, never again human (breeding like Viagra impaired rats and bunnies) consumption of raw materials.
Sell everything
Duck, panic.
Sell Everything....
Everything
(including silver... ah hem)
(Sos we can cover our shorts. Which we don't have. Really. Honest. Well, it'll be smaller after we cover some.)
And right before QEwhatever, too :)
Golly.
Propitious timing, I must say.
Not to mention, this will demonstrate that there is no inflation....
Here's JPM's Article Author - Fenton: http://www.break.com/index/fenton-fenton-fenton-oh-jesus-christ-2226005
While oil chews the legs from underneath them as vapourizing assets.
Until today, didn't these assholes have a $2500 target for gold?
Since when did previous targets have anything to do with current recommendations? Have a great Thanksgivng Turd!
We recommend getting into bonds. Preferably the German type...like last night. Everyone loves bonds. Buy bonds. Be patriotic, no matter to which country you find allegiance. Do not seek out gold or silver. Pieces of paper are much better. Trust us. We are JP Morgan. Never mind what JP Morgan himself said about gold....
And their Silver reco? Cant find it. Is silver still a commodity? LOL Go Blythe GO! Cunt.
Indeed, but that was when they wanted to lure in some new Spec longs to rape during the traditional Pre-OpEx smackdown.
Now, presumably, they want everyone to sell to them so they can cover some more shorts.
There should be some sort of a regulator or something that would oversee the market and stop this sort of thing. Maybe one day, we'll get one.
Since about the time when Gold breached the $1900 level they raised their target to $2500. Of course at that time, they alreadly knew it would go down to $1600 again...
SW and Turd...
Right.
Cover for the Fed, no inflation.
And yep, they had a "big" target for all the commodities.
Desparation is the Morgan way.....
SuperCommittee may ass. I mean, anybody with an ounce of sense knew full well that the Committe was not gonna come to any conclusions. And was clearly telegraphed as such for weeks
Strawman Deluxe
This wouldn't have anything to do with the current OI in silver and gold for December, the huge transfers from customers to the JPM dealer accounts yesterday or even the huge 2.7 million ounce silver withdrawl from the comex? Nah, didn't think so...
Congratulations America. Well the smart ones anyway! Your starting to get it! Buy phyz. gold and silver at any price and aggressively on big dips! If your going to play a paper game then do it in oil. We are headed for the big one in the middle east. My guess is that the collapse will come as an excuse of the war and skyrocketing oil. We are now, at best, two months away.
Above all forget about this crap after today. Enjoy your families ZH brothers and sisters! After all, we pay attention to this crap because among many things, we love them.
Word.
But apparently JPMorgan likes the London Metals exchange
http://www.reuters.com/article/2011/11/23/us-mfglobal-lme-jpmorgan-idUST...
(Reuters) - J.P. Morgan (JPM.N) has agreed to buy all of defunct U.S. brokerage MF Global's (MFGLQ.PK) shareholding in the London Metal Exchange following a competitive bidding process, KPMG, the administrators for MF Global's UK unit, said on Wednesday.
"We received a great deal of interest in the LME shares and are pleased to be in the final stages of concluding a sale," Richard Heis, joint special administrator of MF Global UK, said.
He did not give a price for the sale. Sources told Reuters on Tuesday that J.P. Morgan would pay 25 million pounds ($39 million) for the 4.7 percent stake in the LME, implying a total value of around 530 million pounds.
J.P. Morgan already has a 6.2 percent stake in the exchange, the world's largest metals market.
'If the ECB will not take the hint, JPM will bring the mountain to Mohammed. Or something.'
So JPM won the coin toss with GS over who gets to issue the 'report' eh?
What I want to know is what kind of a coin was it? It wasn't Traditional by any chance?
It was a nickel!
Then those bastards stole it from Kyle Bass!!!
Does anyone have a number for JPM's commodity desk? This report has made me want to sell all my gold and silver immediately. Maybe they would do me a favour and take it off my hands - I hear they are really nice people.
0-800-BLYTHE
Toll free? JP Morgue doesn't do free.
+44 20 7777 4336
Let me know how you get on.
So kind of them to share.
JPM is in a panic over Sprott's $1.5 billion filing to buy silver. They don't have it. They are short. So they are trying anything now. Sprott can more than clean out all the registered silver at the COMEX. But he will likely choke off supply to the COMEX and avoid being involved in a CME default/collapse.
He really should have tea with the Hunt Bros and discuss.
The hunt brothers got hung up by the short and curlies because they played in the paper metal sandpit where the cartel makes the rules to suit themselves.
Sprott buys physical metal, mostly from the producers. The only way the cartel can hurt him is to jack up the price of silver to the stratosphere so he has to pay more for it.
I don't think they'll be doing that in a hurry.
All they are going to accomplish is a fire sale for phyzz. Bring it...I've been saving my fiat for just this opportunity.
Q - They are massively short/Sprott 1.5 B presents a problem, so smash down seems likely. Anyone have thoughts about Friday (thin market, everyone gone, easy to manipulate - sheeple stampede to the exit on the price drop???)
December is a Delivery month for gold and silver at the comex.
They will have to bribe a lot of folks not to roll their contracts over and settle for paper.
Paper that may not even be in your trading account one morning. Go ask Mr. Celente.
Sprott warehouse raid immenent
plant some kiddy porn and do it for the children, would our government really do something like that? Or would it be better to plant some drugs and just confisicate the whole operation in the name of the drug war.
Or plant some chemicals and call it a terrorist opeeration and waterboard Sprott?
The government has a truly impressive array of legal weapons to destroy its targets.
If Sprott does indeed follow through, the long awaited separation of the paper v's physical price will be in gear.
so buy?
Absolutely!!! More Jedi mind tricks. They advise report/advise one thing I completely do the opposite.
To me the chart looks bearish. Would you buy or rather wait till new trend develops???
absolutely, BTFD, hold the physical in your hand,
look at the box below the second chart "Similar Articles You Might Enjoy", the first article is these same clowns at JPM predicting $2,500 gold
You remember Andrew MaGuire? I do, oldie but a goodie.
Andrew McGuire, whistle-blower on market manipulation, injured in hit-and-run accident
Duckxtales
Gold is Money
Sat, 27 Mar 2010 19:04 CD
Interesting turn of events.... TPTB are not happy. Its either they silence him now, or else things would get out of hand if this hits the mainstream media. Just imagine him being interviewed on all the independent newspapers. the only way he can save his life now is go viral with his message with the help of the gold bugs.
Did they include the part about how they're 100 million oz. short silver?
Manufactured fire drill.
Bonds represent much better value! I'm buying a whole bunch of them, diversifying across Europe, Japan and US.
Exactly my thinking! Failure of the world politicans to fix the debt problems will do wonders for those bonds!
Maybe I'm not the brightest, didn't they just state the debt numbers and the growing debt numbers/risk and then recommend buying the debt?
Stop asking questions! FOUR LEGS GOOD TWO LEGS BAD.
Well, I see a load up the truck moment approaching.
Thanks, JPM. With friends like you, who needs equities?
Oh yeah, you might want to include the shorting of bank stocks as well, since we know all that debt plays hell with your valuations.
The big question is: can JPM continue to keep the price of silver equal to its' stock price? Time to throw down...
If nothing else this will be a bit of atest to see how stupid Joe and his advisors really are this time around.
2008 bitches.. correlation of 1 implies liquidity preference towards USD. And let's not forget about a Chinese hard landing. Thus all commodity prices implode until more printing presses are ordered. Margin calls yall. Good luck surviving the commodity complex deleverage-unwind.
+
Let's get physical, physical. I wanna get physical, let's get into physical.
Even with full scale deflation / European debtsplosions, with the capital flight out of China i don't see commodities falling too much.
Particularly now that Australia has just passed a "super tax" on mining profits through their lower house ... in addition to their recent "carbon tax" on primary and energy producers!
Tax, tax, tax! Spend, spend, spend! "The road to prudent economic management"!
Yes, sell your Gold so that Jimie Dimond can buy it cheaply. Fuck you Dimon and fuck your courrpt cartel. Banks all over the world are buying Gold and JP Morgan who is probably short Gold and Silver cxannot be believed about anything.
Probably short? Nah man, there is no doubt about it.
Wow! There really is a concentrated effort by banks and rating agencies, to have CB's hit ctl+p and lower/keep rates at 0%.
?? they mention potato chips but not silver ??
maybe this presentation is like, 'we've painted the charts for y'all but since no one seems to be paying attention, let's us tell you what we had hoped you'd summize'
I think we now know what is stored in their silver vaults. Tons and tons of Lay's.
DESPARATION = JP Morgan Downgrades All Commodities To "Sell"
BUY PAPER ?
LOL
BUY TREES !
You want trees? As luck would have it, we have lots of trees for sale.
-Sino-Forest CEO
Here in Canada they are starting to use polymer instead of linen. Go LONG PLASTIC!
JPMoron.
interesting considering the jp morg bought out mf global's shares in the london gold exchange......
interesting considering the jp morg bought out mf global's shares in the london gold exchange......
Exactly. They would become the largest shareholder, previously holding 6.2% in the LME, now purchasing MF's further 4.7% for a 10.9% stake...see: http://uk.reuters.com/article/2011/11/22/jpmorgan-lme-idUKL5E7MM3LD20111122
G-man Sux has a 9.5% stake (previuosly Lehmans')
One wonders why they shoud be buying into the LME if commodities are no longer a buy... /s/
"Phase Shift" = Phase Shit
C'mon, haven't you ever of heard of the term coincidence? The fact we have been selling to you on the way up, and now you are going to sell on the way down at a lower price means nothing.
Well, except your account takes a hit. But look at the bright side; at least we are better than Stolper [maybe].
http://vegasxau.blogspot.com
I wonder who picked the picture of the ice water for the report? Seems like a good choice.
Maybe they could have used something from Dante's Inferno instead.
I am soooo fucking partial to the 7th Circle with the flaming river of blood.
Exciting :)
I'm going to stay in this bottle.
Didnt this group of gansters say Gold would be at $2000+ an ounce at the end of the year? Of course they did, but they want to be holding it, not you.
http://georgewashington2.blogspot.com/2011/08/1-year-gold-price-forecasts-jp-morgan.html
Here you go, read up on these fuckin gangsters.
They issued a HUGE buy on GOLD with target of $2250-2500 by year end a few months ago.
Gold has gone down the moment they issued this buy.
Now they are saying sell???? I'm guessing that is what ZH hints at and is the exact opposite of what they are doing.
BTFD!
So is this the end of the inflation/deflation debate?
Deflation it is, which reminds me, I have to change the air in my tires, I still have the summer air in them, need to put in the winter air.
They say buy bonds? How does that even make any sense in a debt implosion? They are betting everything on the idea that the Fed will continue to prop Treasuries. That means they are betting everything on QE.
+1 and the upside for bonds from here is?
JPM probably wants to see a lot of selling in gold and silver as the number of contracts poised to stand for delivery is more than they can handle.
"Jamie, we need to unwind those shorts!" -Blythe
You gotta know ms. ironbox is gonna wear this in the end.
these weenies always make their move when liquidity is minimized ... happy thanksgiving
Sell my gold. I don't think so. Might be time to buy more.
The report actually said to continue holding gold in your portfolio. Doesn't match the ZH article title.
I agree Marc but some obviously didn't read it very well.
The report says "We continue to believe gold should be held in the portfolio ...."
Get shorts in place then downgrade. Fuck JPM! They are the problem
This made my day... really! I overslept, hit my pinky toe on the table, spilling coffee over my crisp shirt, traffic was a bitch, nagging collegae...but now this! I'm smiling from ear to ear!
Thnx JPM for the FD! :D
Blyte Masters Bitchez!
libertarian86.blogspot.com
no mention of silver
sell silver to cover their shorts. Right! Sell anything and buy silver!
Right….
The sale’s/propaganda arm of the debt system is selling paper again.
Stuck in the Middle with you...http://youtu.be/OMAIsqvTh7g
Anyone with a direct line of sight to laser sight their trading floor for the drones?
What a laffable load of shit these JPM people are. "Policy failures"? You mean that DC is not in your fucking pocket anymore? Isnt that what you mean JPM? Since they are not being accountable to you, you have no fucking inside track on the speed of their fucking printing press and other phony stimulus. That must really eat into JPM's fucking short term returns. Why don't you fuckers at JPM and the rest get a real job. Why don't you make a real company, that actually produces something. Maybe then you will understand that your idea of "policy failures" has absolutely fucking nothing to do with the way the real world works. Better yet, go to China. They have some education camps that might help you fucking see straight.
Since no-one has done it yet, here's your obligatory triptych of snark, each one a well-worn path, given the plays being pulled out of the bag (nothing new under the sun):
http://www.youtube.com/watch?v=uNhBV2uGi4Y
http://www.youtube.com/watch?v=TSZKDkLgzhk&feature=related
http://www.youtube.com/watch?v=6butfe1f9Hg
I'm pretty sure there has been a error in JPM's reports author name..
His correct name is Colon Feces.
You forgot about WAX MAN!
How do you download and save this report?
Using potato chips as an inflation indicator?
Are you f*ckin kidding me?
it's a broken model. you need the complete BigMac trio to get the whole picture...
The price of a totinos's pizza is the ultimate tell.
If there was one Bank that I could choose to "disappear" it would be the JP Morgan Chase &Co.
All you have to remember, JPM is the Federal Reserve, trying desperately to save the sinking ship(Fiat money).
I don´t know, this is a blow to Goldman´s warehousing business, right? Maybe the owners of the FED are fighting among themselves.
THE PEOPLE AT JP MORGAN ARE THE WORST PIGGGGGGGGGGGGGGSSSSSSSSSSSSSSSSSS YOU WILL EVER FIND IN WALL STREET. INVESTORS SHOULD TAKE THEIR MONEY OUT THE BANK AND FORCE A RUN IN THE BANK FOR GOOD
Downgrading outlandish prices of overabundant stuff seems like a great idea to me.
gs,jpm,clown man cramer over at the criminal street....... hang em high!
it's great craic watching the lying theiving bastards once on top of their game pitching and swaying in desperation as their edifice crumbles around them
US public debt is $15Tn (100% of GDP) and growing: Since S&P cut the US sovereign credit rating four months ago, the US public debt has grown by $455Bn, an amount larger than Greece’s sovereign debt
-------------------------------------------------------------
Didn't they have to let gold go parabolic before they organized the beat down over the first downgrade?