Silver Spike Does Not Deter Zombie Market As Apple Touches The Sign Of The Beast

Tyler Durden's picture


UPDATE: AAPL cracked the demonic $666 level after-hours

For a moment this morning some were even thinking this would be the day, this could be the one where volumes come back, ranges expand, and some level of risk sensitivity returns; but alas, despite all the AAPL pumping and Silver surging, Equities ended the day unch on weak volumes (actually cash equities ended very small down for the 16th of the last 17 Monday red closes). The S&P 500 e-mini future (ES) intraday range was a remarkably low 8.5pts, volume at its new post-Knight normal (half-normal), average trade-size lower than average, and risk-assets in general were highly correlated during the day-session as Treasuries also closed unchanged, USD down very modestly and Oil unch. Financials and Tech & Healthcare and Utilities were the only sectors in the green on the day (in an awkward risk on and off way). Copper dumped as Silver surged 2.6% on the day to two-month highs. AAPL also surged 2.6% (up 7% in the last 6 days - a level that has repeatedly been followed by pullbacks this year) as everyone's new favorite IPO (MANU) lost 2.6% (even as FB gained almost 5% closing just below $20). VIX gained 0.6 vols ending above 14% (but drifted lower from the open). While the markets main seem zombie-like, there were some intraday moves in FX and Treasury markets - but these were dominant during Europe's open and faded into the US day-session.

AAPL surged 2.6%, +7% in the last 6 days and on very heavy volume...


and the AAPL effect... +5.4% in 3 days provides a 90-100bps outperformance (over 3 days!!) of NASDAPPL over the Dow/S&P/Transports index...


S&P 500 futures saw significant early volumes as they pressed against VWAP but then crept higher into the close (after Europe's close) on lower and lower volumes...


The pattern was similar for most risk assets today - with an early volatility episode during Europe's early trading that recovered and stabilized on vapors in the US session...FX markets...


but Treasury and FX carry swings drove early European 'strength' in our markets only to give it back once the ECB denied... as is clear below - during the US day-session, risk assets (ES and CONTEXT) were highly systemically correlated...


and Silver stood alone among commdoties in its spikey surginess today...


Credit indices outperformed - catching up to equity's ebulience - but desk chatter is mostly on re-racking moves (i.e. runs quoted on back of market moves) as opposed to trades with volumes dire. HYG remains an underperformer - though managed a small green close today against equity's red...


Charts: Bloomberg and Capital Context


Bonus Chart: AAPL/Silver ratio - it intrigued us that AAPL and Silver were both outliers today and both rose almost exactly 2.6% or so from Friday's close... so presented for your viewing pleasure the channel-breakout of the AAPL/Silver ratio (that occurred immediatley after the end of LTRO2)...

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Mon, 08/20/2012 - 16:33 | 2721568 hugovanderbubble
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Stocks ----------->Index may have to be capped not more than 5% market weight per stock.

Mon, 08/20/2012 - 16:52 | 2721648 slaughterer
slaughterer's picture


16:12 $ 666.10 10016:12 $ 666.15 10016:12 $ 666.21 High10016:12 $ 666 10016:12 $ 666 10016:12 $ 666 10016:12 $ 666 10016:12 $ 666 10016:12 $ 666 10016:12 $ 666 10016:12 $ 666 10016:12 $ 666 14916:12 $ 666 10016:12 $ 666 20016:12 $ 666 10016:12 $ 666 10016:12 $ 666.01 10016:12 $ 666.02 10016:12 $ 666.02 10016:12 $ 666.01 10016:12 $ 666.01 10016:12 $ 666 10016:12 $ 666 25916:12 $ 666 100

Read more:

Tue, 08/21/2012 - 07:07 | 2723045 CharlieSDT
CharlieSDT's picture

Uh, I guess it's time to roll the dice and buy some OTM AAPL puts, hopefully this time it will finally work out.

Mon, 08/20/2012 - 16:31 | 2721569 ACP
ACP's picture

And that just happens to be immediately after Lord Rothschild shorted the euro. Interesting times, indeed.

Mon, 08/20/2012 - 16:34 | 2721577 Tyler Durden
Tyler Durden's picture

Rothschild's short in notional terms (just over $200MM) is peanuts in modern market terms.

Mon, 08/20/2012 - 16:46 | 2721596 vast-dom
vast-dom's picture


why did silver surge?


it should be well over $50 if JPM shorts failed to clamp it down. maybe JPM Apple shorts lined up with our ASR (apple silver ratio) though that's massive stretch of correlation.


Mon, 08/20/2012 - 16:54 | 2721660 new game
new game's picture

my best guess is the wagon was leaving the mine and a few decided to get on board...

could consolidation be coming to an end prompted by TPTB, main the da printer to be?, patience and still way better than .07/mo of checking balance of 2,000.


Mon, 08/20/2012 - 16:57 | 2721676 vast-dom
vast-dom's picture

flip a coin at the edge of a blackhole.

Mon, 08/20/2012 - 17:02 | 2721693 new game
new game's picture

the blackhole; hmmm, something doesn't sound right about that.

Seriously, it would be nice to know what really did move it.


Mon, 08/20/2012 - 17:07 | 2721707 new game
new game's picture

from kitco

technical in nature, but still doesn't answer why the fuck everybody and his brother decided today.

September silver futures closed up $0.588 an ounce at $28.595 Monday. Prices closed near the session high, hit a fresh two-month high and scored a bullish “outside day” up on the daily bar chart. Monday’s price action could be the beginning of a bullish upside breakout from a sideways and choppy trading range on the daily bar chart. Silver bulls and bears are now back on a level near-term technical playing field, but bulls do have fresh upside momentum. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the June high of $29.915 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the August low of $26.88. First resistance is seen at Monday’s high of $28.645 and then at $29.00. Next support is seen at $28.445 and then at $28.335. Wyckoff's Market Rating: 5.0.

Mon, 08/20/2012 - 17:20 | 2721751 vast-dom
vast-dom's picture

all gibberish. silver should be well into the $50s. And gold past $2k. bulls bears short long upside blah bleh rating scmating it's all fucked. adjust to fed printing and flow and GSR and commodities and FUNDAFUCKINGMENTALS and PE and no movement below $50 should exist. but we are dead and we are alive and nothing aligns. 

Mon, 08/20/2012 - 16:50 | 2721636 arsenal009
arsenal009's picture

Forget notional terms.  It's the ruler of the world pretty much saying the Euro is done.

Mon, 08/20/2012 - 18:30 | 2721933 A L I E N
A L I E N's picture

Yeah but they are triple reverse delta hedged long, so who who knows their other positions on the Euro

Mon, 08/20/2012 - 18:08 | 2721867 ACP
ACP's picture

Not implying it was a market moving bet, just that - I guess we'll see - the timing may well be impeccable.

Edit: I should have clarified - I was speaking strictly in terms of the eur/usd pair & AAPL reaching 666...wasn't referencing the price of silver...

Mon, 08/20/2012 - 16:38 | 2721588 hugovanderbubble
hugovanderbubble's picture



TILL 1.10-1.00

Mon, 08/20/2012 - 16:41 | 2721592 Dr. Engali
Dr. Engali's picture

There is no story there.He probably has $200 million laying around in petty cash. He is just messing with Alex Jones.

Mon, 08/20/2012 - 16:55 | 2721664 ZeroAvatar
ZeroAvatar's picture

Similar to Romney's "I'll bet ya $10,000......"

Mon, 08/20/2012 - 16:31 | 2721572 EscapeKey
EscapeKey's picture

Don't HFT's do over 70% of market trading now?

That means organic investor trading is essentially completely dead.

Mon, 08/20/2012 - 16:34 | 2721578 AllThatGlitters
AllThatGlitters's picture

Silver has all night to catch up with Apple:




Mon, 08/20/2012 - 16:38 | 2721582 BlackholeDivestment
BlackholeDivestment's picture

...besides RTN, the 666 Apple mark has been a market indicator for when the Iran event(s) should begin. The Golden Monkey BTFID Cup of Fornication Dollar Spike being the confirmation. Lol. Is it hot in here or should I just put on my shorts? LMAO


Mon, 08/20/2012 - 16:48 | 2721627 new game
new game's picture

now, now, lets get ahold of ourselves - 666 is a number, no more, no less...

Mon, 08/20/2012 - 16:51 | 2721646 magpie
magpie's picture

Satan loves fruits

Mon, 08/20/2012 - 16:37 | 2721585 Money 4 Nothing
Money 4 Nothing's picture

Add up all the numbers on a Roulette wheel and what do you get? Cashin out I say.

Mon, 08/20/2012 - 16:40 | 2721590 fuu
fuu's picture

Silver bitchez!

Mon, 08/20/2012 - 17:26 | 2721770 fuu
fuu's picture

I had nothing to do with the film. I would have made music for it if they had asked though.

Mon, 08/20/2012 - 16:40 | 2721594 vast-dom
vast-dom's picture

why did silver surge?

Mon, 08/20/2012 - 16:46 | 2721617 CunnyFunt
CunnyFunt's picture

Eric Sprott probably bought half of the Comex stock, about 1200 ozt.

Mon, 08/20/2012 - 16:56 | 2721671 ZeroAvatar
ZeroAvatar's picture

Ummmm, I dunno......Insider front running?

Mon, 08/20/2012 - 17:13 | 2721727 slewie the pi-rat
slewie the pi-rat's picture

lQQk up^   v_d!  fuu has the answer!

that's abt as rational as silver gets

the answer to the pricing would be found in the crimex action where is would draw yer attn to the spiking in PLAT since last thursday Platinum (Globex) Intraday Commodity Futures Price Chart: Oct. 2012

there may have been auto news that if ya can 50 miles on $4 worth of gas, why fuk around with batteries?  which is about where electric cars ended last century, too...  L0L!!!

or just the riskOn is good for PLAT b/c (as the "story" goes) it is an "industrial metal" (besides, they can do those ratio spreads, and w/ the options, too!crimex banksters & the consumer)

and (as the story continues...) so is silver...

ergo, this is b/c everything is gonna freaking BOOM! BOOM!  BOOM! KA-BOOM!!!

at least that is "rational",  huh?

Mon, 08/20/2012 - 17:21 | 2721757 fuu
fuu's picture

Do they mine silver at Marikana?

Mon, 08/20/2012 - 17:52 | 2721849 slewie the pi-rat
slewie the pi-rat's picture


such people

ground under
ghosting echoes of booms

corpo-citizens go tribal again
refreshing the automatic earth

a sundance
a green and yellow
blast of abundance

Mon, 08/20/2012 - 19:22 | 2722061 fuu
fuu's picture

I'm stealing that.

Mon, 08/20/2012 - 17:38 | 2721802 Haager
Haager's picture

It's risk-on? I didn't notice that.

Mon, 08/20/2012 - 18:01 | 2721863 slewie the pi-rat
slewie the pi-rat's picture


banksterClubTM rules:

  1. do not look behind the curtain
  2. do not blink
Mon, 08/20/2012 - 16:44 | 2721606 CunnyFunt
CunnyFunt's picture

Interesting that MANUre went down after avowed Labourite SAF got his payoff in the form of RvP.

Mon, 08/20/2012 - 16:51 | 2721641 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

And are losing 1-0 to Everton.

Mon, 08/20/2012 - 16:44 | 2721611 magpie
magpie's picture

They should dispense with all pretenses and create an own APPL volatility index.

Mon, 08/20/2012 - 16:46 | 2721615 fiftybagger
fiftybagger's picture

Just 1% of AAPL market cap of 623 billion would buy over 200 million ounces which would send silver over 50 bucks in one day.  Got physical?

Silver For The People

Mon, 08/20/2012 - 17:03 | 2721697 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

fifty, your on to something; aapl investing some of the 110b?


oh. stolen.

Mon, 08/20/2012 - 16:47 | 2721619 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

Appl the safe haven it looks like... the digital gold.

Mon, 08/20/2012 - 16:49 | 2721628 slaughterer
slaughterer's picture

Silver and Citibank charts today: compare those.  

Mon, 08/20/2012 - 16:58 | 2721679 new game
new game's picture

fifty, your on to something; aapl investing some of the 110b?

Mon, 08/20/2012 - 18:05 | 2721884 slewie the pi-rat
slewie the pi-rat's picture


we needed that!

Mon, 08/20/2012 - 18:10 | 2721888 pd45
pd45's picture

You are still holding PM? I thought you took your physicals and went down to Cash4Gold place last Friday?  The one near my house is open on weekends. It used to be Cash4YourHouse just couple of years ago.

Did you at least closed out your shorts?

Mon, 08/20/2012 - 17:04 | 2721701 urbanelf
urbanelf's picture

Werewolves are lovin' this.

Mon, 08/20/2012 - 17:57 | 2721865 rqb1
rqb1's picture

best post of the day!

Mon, 08/20/2012 - 17:08 | 2721708 economicfreefall
economicfreefall's picture

The gold-silver-ratio is starting to approach 55 and it just crossed the weekly 50-day MA. RSI and MACD look bearish. Seems like a similar setup to fall 2010. Whenever more easing will be announced/realized by the market, and gold starts climbing again, silver should once more provide huge leverage as inflation expectations is so important at the moment for the "industrial" metal. -portfolio tracker & analysis of gold and silver stocks

Mon, 08/20/2012 - 17:09 | 2721713 lolmao500
lolmao500's picture

APPL better buy than gold...

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