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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 | 1572605 BaBaBouy
BaBaBouy's picture

GOLD Bitchez ...

 

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

Thu, 08/18/2011 - 10:02 | 1572620 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 | 1572699 BaBaBouy
BaBaBouy's picture

GOLD Now @ New Highs ...

 

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

 

GoldToTheMoon...

Thu, 08/18/2011 - 10:02 | 1572627 snowball777
snowball777's picture

Sorry. :)

Thu, 08/18/2011 - 10:15 | 1572713 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 | 1572708 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 | 1572804 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 | 1572608 Independent Rep...
Independent Republicrat's picture

The Fix is breaking bitchez.

Thu, 08/18/2011 - 10:11 | 1572686 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 | 1572828 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 | 1573648 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 | 1572610 Boilermaker
Boilermaker's picture

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

Thu, 08/18/2011 - 10:02 | 1572621 HelluvaEngineer
HelluvaEngineer's picture

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

Thu, 08/18/2011 - 10:09 | 1572673 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 | 1572868 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 | 1572638 Stoploss
Stoploss's picture

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

Thu, 08/18/2011 - 10:00 | 1572611 Kokulakai
Kokulakai's picture

Bernanke Ka-put?

Thu, 08/18/2011 - 10:02 | 1572613 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 | 1573362 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 | 1572614 wang (not verified)
wang's picture

I apologize to Rosie

Thu, 08/18/2011 - 10:02 | 1572617 machineh
machineh's picture

Dow 11K -- busted to hell!

KICK IT WHILE IT'S DOWN!

Thu, 08/18/2011 - 10:02 | 1572618 Flakmeister
Flakmeister's picture

Philly Fed just crapped the couch....

 

Thu, 08/18/2011 - 10:05 | 1572641 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 | 1572704 Flakmeister
Flakmeister's picture

Last hit this number in March 09

Thu, 08/18/2011 - 10:03 | 1572619 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 | 1572647 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 | 1572678 lolmao500
lolmao500's picture

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

Thu, 08/18/2011 - 10:13 | 1572712 Flakmeister
Flakmeister's picture

You clearly missed the Japanese reference....

Thu, 08/18/2011 - 10:21 | 1572781 lolmao500
lolmao500's picture

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

Thu, 08/18/2011 - 12:07 | 1573387 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 | 1572629 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 | 1572649 Thorlyx
Thorlyx's picture

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

Thu, 08/18/2011 - 10:38 | 1572912 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 | 1573635 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 | 1573664 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 | 1573681 Flakmeister
Flakmeister's picture

Yep....

Thu, 08/18/2011 - 13:46 | 1573791 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 | 1572630 ZeroPower
ZeroPower's picture

UNDER 2 FUCKING %!

Thu, 08/18/2011 - 10:04 | 1572632 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 | 1572663 DaveyJones
DaveyJones's picture

1st some robot ass, then some representative 

Thu, 08/18/2011 - 10:04 | 1572633 Troy Ounce
Troy Ounce's picture

 

 

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

Thu, 08/18/2011 - 11:19 | 1573128 sleepingbeauty
sleepingbeauty's picture

My place, BYOWFAG (Water Food Alcohol and gas)

Thu, 08/18/2011 - 10:04 | 1572634 vast-dom
vast-dom's picture

Time to BUY TBT

 


Thu, 08/18/2011 - 10:05 | 1572640 swissaustrian
swissaustrian's picture

Volume wasn´t that high - interesting...

Thu, 08/18/2011 - 11:42 | 1573253 Cruel Aid
Cruel Aid's picture

Down 500 points without the panic volume.

Walk in the park?

Thu, 08/18/2011 - 10:06 | 1572643 DaveyJones
DaveyJones's picture

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

Thu, 08/18/2011 - 10:07 | 1572655 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 | 1572707 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 | 1572660 mist929292
mist929292's picture

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

Thu, 08/18/2011 - 10:15 | 1572731 midtowng
midtowng's picture

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

Thu, 08/18/2011 - 10:09 | 1572675 mfoste1
mfoste1's picture

VACATION TIME BITCHEZ!

Thu, 08/18/2011 - 10:09 | 1572676 Tense INDIAN
Tense INDIAN's picture

today is looking even more ferocious

Thu, 08/18/2011 - 10:12 | 1572687 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 | 1572689 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 | 1572722 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 | 1572943 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 | 1572782 Cursive
Cursive's picture

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

Thu, 08/18/2011 - 10:21 | 1572789 RockyRacoon
RockyRacoon's picture

I'll admit to a certain degree of schadenfreude.

Thu, 08/18/2011 - 10:27 | 1572816 Flakmeister
Flakmeister's picture

I knew you had it in you....

Thu, 08/18/2011 - 10:52 | 1572973 Johnny Lawrence
Johnny Lawrence's picture

How's Bill Gross' short position in Treasuries?

Thu, 08/18/2011 - 14:35 | 1573967 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 | 1574191 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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