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Stocks Plunge, 10 Year At Record Low, Gold At Record High

Tyler Durden's picture





 

Panic mode is fully back with stock plunging to Friday lows, while both gold and bonds are at records, 10 Year touching a record low 2.03%, the S&P plunging to Friday's lows and gold as is well known, back at all time highs. The catalyst: the same thing Zero Hedge reported yesterday, namely that one bank in Europe has a dire dollar squeeze (note not EUR) to the tune of $500 MM. The real market is thus now pricing in both hyperinflation and hyperdeflation at the same time, while the Fed's policy instrument, stocks, is now pricing in Lehman part deux (but don't nobody mention SocGen or the black choppers will come after you). As for those who followed Doug Kass' advice and bought XLF yesterday, we have four words: iShares Inverse Kass ETF.

ES:

10 Year:

Another look at bonds which continue pricing in the end of the world:

 

 


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Thu, 08/18/2011 - 10:02 | Link to Comment BaBaBouy
BaBaBouy's picture

GOLD Bitchez ...

 

KITCO out of 1 Ozs Bars, never seen that before ...

Thu, 08/18/2011 - 10:02 | Link to Comment Pladizow
Pladizow's picture

Black Hawk drills over Bank of America in Miami???????

http://www.youtube.com/watch?v=IGGnXARDr3c

Thu, 08/18/2011 - 10:12 | Link to Comment BaBaBouy
BaBaBouy's picture

GOLD Now @ New Highs ...

 

This is nothing folks, 2nd inning only...

 

GoldToTheMoon...

Thu, 08/18/2011 - 10:02 | Link to Comment snowball777
snowball777's picture

Sorry. :)

Thu, 08/18/2011 - 10:15 | Link to Comment TruthInSunshine
TruthInSunshine's picture

The highly educated and extremely intelligent The Bernank has managed to break all markets.

When is someone in a public position going to mention The BubblesBananasBernank problem?

Thu, 08/18/2011 - 10:12 | Link to Comment midtowng
midtowng's picture

Hope Chavez didn't have his gold at Kitco. ;-)

Over 200 tonnes of gold is leaving the market. How many counter-parties are going to get squeezed?

Thu, 08/18/2011 - 10:23 | Link to Comment Smiddywesson
Smiddywesson's picture

Maybe they are out, maybe they are bunkering.  That is a canary in the coal mine.

Thu, 08/18/2011 - 09:59 | Link to Comment Independent Rep...
Independent Republicrat's picture

The Fix is breaking bitchez.

Thu, 08/18/2011 - 10:11 | Link to Comment midtowng
midtowng's picture

But why today? The news out today isn't any worse than it has been for the last week, yet the markets had a HUGE rally over the past several days.

Now they are in full panic mode. It's as if there is more bad news on the way that only the insiders know about.

Thu, 08/18/2011 - 10:28 | Link to Comment Smiddywesson
Smiddywesson's picture

This market is going to get a HUGE infusion of Benny bucks as soon as volume drops.  The Fed is not even near done with their gold acquistions.  Not at these prices.

Their game is to keep the markets up and buy gold.  Don't fall for the market collapse theory, that's not in the cards until the game is over, and it ain't over.  It is not a market, or it would have collapsed long ago.  Don't trade it like it's a market.

Expect some more 500pt swings back and forth over the next few days.

Thu, 08/18/2011 - 13:09 | Link to Comment ElvisDog
ElvisDog's picture

What evidence do you have that the Fed is buying gold? Haven't heard that one before.

Thu, 08/18/2011 - 10:01 | Link to Comment Boilermaker
Boilermaker's picture

Hold on to your asses....this is going to hurt.

Thu, 08/18/2011 - 10:02 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

BM - Hey - saw the stupidity in IYR this morning and went short.  Insane.

Thu, 08/18/2011 - 10:09 | Link to Comment Boilermaker
Boilermaker's picture

Yea, it's ridiculous and has been for quite a long time now.  It's down >4% now.  In my humble opinion, when they really let that go then you know the game is over.

They're trying to stick save and breath life back into it right now.  We'll see.  I wouldn't be surprised to see them try to jerk it way back up again before the close.

Thu, 08/18/2011 - 10:33 | Link to Comment Smiddywesson
Smiddywesson's picture

My guess is they will try to shore it up in low volume during lunch.

Thu, 08/18/2011 - 10:05 | Link to Comment Stoploss
Stoploss's picture

Ahhhh the irony... 666 is the break point for the RUT, LOL!!!

Thu, 08/18/2011 - 10:00 | Link to Comment Kokulakai
Kokulakai's picture

Bernanke Ka-put?

Thu, 08/18/2011 - 10:02 | Link to Comment speconomist
speconomist's picture

XLF is a Financial Sector ETF, right?

Did Doug recommend to buy that one, or the inverse?

Thu, 08/18/2011 - 12:03 | Link to Comment WiZlon
WiZlon's picture

Kass said we've hit the bottom - the selling is overdone (you can probably find his comments on CNBC).  Looks like he was a tad early with this prediction.

 

Kass says buy XLF.  Tyler says buy the inverse.  One of them did good today, the other is named Doug.  :)

 

 

Thu, 08/18/2011 - 10:01 | Link to Comment wang (not verified)
Thu, 08/18/2011 - 10:02 | Link to Comment machineh
machineh's picture

Dow 11K -- busted to hell!

KICK IT WHILE IT'S DOWN!

Thu, 08/18/2011 - 10:02 | Link to Comment Flakmeister
Flakmeister's picture

Philly Fed just crapped the couch....

 

Thu, 08/18/2011 - 10:05 | Link to Comment narapoiddyslexia
narapoiddyslexia's picture

Has anyone ever seen -30 on the Philly Fed before? 

Is this not an indicator that corporate profits are on the express elevator, in the down vector?

Thu, 08/18/2011 - 10:12 | Link to Comment Flakmeister
Flakmeister's picture

Last hit this number in March 09

Thu, 08/18/2011 - 10:03 | Link to Comment lolmao500
lolmao500's picture

That's why I'm going to buy 10 years bond shorts. Once QE3 kicks in, it's gonna skyrocket.

Thu, 08/18/2011 - 10:06 | Link to Comment Flakmeister
Flakmeister's picture

There will be no explicit QE3... be careful or you may be inadvertantly committing seppuku...

Thu, 08/18/2011 - 10:09 | Link to Comment lolmao500
lolmao500's picture

Yeah right. How can US treasury bonds go lower? It just cannot.

Thu, 08/18/2011 - 10:13 | Link to Comment Flakmeister
Flakmeister's picture

You clearly missed the Japanese reference....

Thu, 08/18/2011 - 10:21 | Link to Comment lolmao500
lolmao500's picture

Ya well Bernanke cannot go japanese, he's too impolite.

Thu, 08/18/2011 - 12:07 | Link to Comment TruthInSunshine
TruthInSunshine's picture

The Bernank can not only go Japanese, he can do a fantastic bukkake & kabuki on the taxpayers while doing so.

I call The Bernank's new breed of economic theory 'Fugunomics.'

Thu, 08/18/2011 - 10:03 | Link to Comment FoieGras
FoieGras's picture

No instrument in the market .. NONE... is pricing in hyperinflation. It's delfation all the way.

Stocks, Gold, Bonds, Oil etc. etc.

Thu, 08/18/2011 - 10:06 | Link to Comment Thorlyx
Thorlyx's picture

unfortunately not at the pump and not at the grocery store.......

Thu, 08/18/2011 - 10:38 | Link to Comment Smiddywesson
Smiddywesson's picture

Gold is going down FoieGras?   Have you been eating Prechter pate?  Gold goes up during deflation and up during inflation, esp hyperinflation.  That's because gold is a currency.  That's because gold is the measuring stick by which all value is measured.  In short, gold is going up because central banks know all of the above, are buying it like crazy, and know what's coming next because they are in contol of a top down system.

Thu, 08/18/2011 - 13:07 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Most deflationists have their head up their ass on gold. They don't get it and never will. 

QE3 will only make things worse and that's where we're heading.

Thu, 08/18/2011 - 13:13 | Link to Comment ElvisDog
ElvisDog's picture

I agree that QE3 makes it all worse, but I disagree that it's coming. It is the last bullet in the Fed's revolver, and if they launch QE3 and it fails then the Fed has nothing. Not only do they have nothing but the last shread of their credibility is gone. In my opinion, the Fed won't launch QE3 because they know it will fail and when it does the whole ball wax comes apart.

Thu, 08/18/2011 - 13:17 | Link to Comment Flakmeister
Flakmeister's picture

Yep....

Thu, 08/18/2011 - 13:46 | Link to Comment Temporalist
Temporalist's picture

Yes gold is the numeraire...what all other wannabe currencies are measured against.

I forgot the term for something that is purchased more as the price rises demand increases...it is that too.

Thu, 08/18/2011 - 10:03 | Link to Comment ZeroPower
ZeroPower's picture

UNDER 2 FUCKING %!

Thu, 08/18/2011 - 10:04 | Link to Comment Debtless
Debtless's picture

It's nice to see the human volume back kicking some robot ass this morning.

Thu, 08/18/2011 - 10:08 | Link to Comment DaveyJones
DaveyJones's picture

1st some robot ass, then some representative 

Thu, 08/18/2011 - 10:04 | Link to Comment Troy Ounce
Troy Ounce's picture

 

 

Fuck, where is the party if stocks plunge to zero?

Thu, 08/18/2011 - 11:19 | Link to Comment sleepingbeauty
sleepingbeauty's picture

My place, BYOWFAG (Water Food Alcohol and gas)

Thu, 08/18/2011 - 10:04 | Link to Comment vast-dom
vast-dom's picture

Time to BUY TBT

 


Thu, 08/18/2011 - 10:05 | Link to Comment swissaustrian
swissaustrian's picture

Volume wasn´t that high - interesting...

Thu, 08/18/2011 - 11:42 | Link to Comment Cruel Aid
Cruel Aid's picture

Down 500 points without the panic volume.

Walk in the park?

Thu, 08/18/2011 - 10:06 | Link to Comment DaveyJones
DaveyJones's picture

Ah Panic mode, it's getting so familiar it's sort of...comforting

Thu, 08/18/2011 - 10:07 | Link to Comment fiftybagger
fiftybagger's picture

Gold up 40 bucks and dow down 400

"It's a beautiful day in the (Zerohedge) neighborhood"

http://www.youtube.com/watch?v=FaYR5lwzomE

Thu, 08/18/2011 - 10:13 | Link to Comment DaveyJones
DaveyJones's picture

unfortunately, most neighborhoods are gonna end up like this

http://www.youtube.com/watch?v=g5KtS86OR-k

Thu, 08/18/2011 - 10:07 | Link to Comment mist929292
mist929292's picture

Man, I never knew investing in gold would be so much fun.

Thu, 08/18/2011 - 10:15 | Link to Comment midtowng
midtowng's picture

Give me my annual 20-30% ROI and I'm happy.

Thu, 08/18/2011 - 10:09 | Link to Comment mfoste1
mfoste1's picture

VACATION TIME BITCHEZ!

Thu, 08/18/2011 - 10:09 | Link to Comment Tense INDIAN
Tense INDIAN's picture

today is looking even more ferocious

Thu, 08/18/2011 - 10:12 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

R2K finding support @ 666?

coffee was perky, back into downtrend.  decaf? 

warning: possible "risk off" today!   slight chance of zeroHedge staying up; cutesie pictures on boards will do it!

Thu, 08/18/2011 - 10:11 | Link to Comment bullionbaron
bullionbaron's picture

Gold at record high, yet Gold stocks not following: http://www.bullionbaron.com/2011/08/hui-forming-head-shoulders-pattern.html

Time to be heavier the physical metal.

Thu, 08/18/2011 - 10:14 | Link to Comment lieutenantjohnchard
lieutenantjohnchard's picture

as mentioned a couple of times here at zh i would not be surprised in the least if tptb step aside and allow gold and silver to rocket higher. maybe tptb have gotten that old time religion, and see the light in regards the shiny.

Thu, 08/18/2011 - 10:44 | Link to Comment Smiddywesson
Smiddywesson's picture

If they are still buying, why would TPTB step aside and let PM prices soar?  That would signal the end for kick the can and make them press the reset button.  They are more likely to wait for the retracement day when they push the DOW up 500 points on low volume and then use another two of their priceless margin increases against gold.

Thu, 08/18/2011 - 10:21 | Link to Comment Cursive
Cursive's picture

Don't worry, our central planning fathers will make everything all right.

Thu, 08/18/2011 - 10:21 | Link to Comment RockyRacoon
RockyRacoon's picture

I'll admit to a certain degree of schadenfreude.

Thu, 08/18/2011 - 10:27 | Link to Comment Flakmeister
Flakmeister's picture

I knew you had it in you....

Thu, 08/18/2011 - 10:52 | Link to Comment Johnny Lawrence
Johnny Lawrence's picture

How's Bill Gross' short position in Treasuries?

Thu, 08/18/2011 - 14:35 | Link to Comment goldfish1
goldfish1's picture

Silver seems to be holding her own. They can't keep her down?

 

Gold: Monday 1732   Thursday 1826 +5.1%

 

Silver Monday 38.82  Thursday 40.85 +4.96%

 

 

Thu, 08/18/2011 - 15:35 | Link to Comment FluffyCone
FluffyCone's picture

Anyone know where I can by stacks of Zimbabwe dollars? All the sellers on eBay want too much just for one or two un-circulated notes. I want to get a stacks of the notes in various domination and create my own personal bank. LOL!!! Anyway, I am seriously looking for the notes though. Thanks,

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