"We Have A Problem" - Houston Hits Stocks, But Bonds & Bullion Bid

"Unprecedented"

 

Gold was the big gainer on the day with bonds barely green and stocks and the dollar lower...

 

And remains the big winner YTD...

 

The Dow ended the day red, but ranges were very narrow...Because nothing says buy small cap (domestic) stocks like an unprecedented crisis in Texas...

 

FANG Stocks closed higher but gave back their early short-squeeze gains...

 

S&P remains below its 50DMA...

 

But VIX was hammered lower to ensure a green S&P close...

 

Tech outperformed (and Utes closed green) as Retailers, Energy, and Financials dropped early and never bounced...

 

Meanwhile, Speculators have never been more net long Dow futures...

Notably VIX short positioning was reduced (less short) and aggregate bond futures positioning remains near its longest since 2013 (and aggregate FX futures positioning is near the most USD short since 2013).

Aside from the long-end, Treasury yields fell modestly on the day (belly outperforming the tails)...(NOTE: UK Bank Holiday today)

10Y Yields dropped to 2.15% - lowest since Draghi's June hawish comments.

 

The Dollar Index drifted lower during the US session (extending the Yellen/Draghi losses from Friday) after trading in a very narrow range overnight...

 

The Dollar Index fell below otys 200-week average for the first time since 2014..

 

Gold futures settled above $1300 for the first time since Nov 2016...

 

To the highest close for front-month futures since Sept... (biggest day for Gold in over 3 months)

 

Silver also blew through $17 convincingly, closing above its 200DMA for the first time since April...

 

While gold had a big day, the copper/gold ratio remains notably decoupled from bonds... Gold up more? Bond prices down? Copper crumble?

 

Finally, of course, the big news today was the swings in the energy complex. While RBOB Gasoline spiked at last night's open, its drifted lower all day and WTI tumbled to one-month lows...

 

There could be some relief as the WTI-RBOB Crack leaked lower into the close...

Comments

FreeNewEnergy Aug 28, 2017 7:11 PM Permalink

I hate NY.Went for my annual ass-raping today, otherwise known as getting the holy DMV inspection sticker.Guys who inspected last year wouldn't pass the same tires they passed a year ago + 4000 miles. The fuckers are practically new, with lots of tread. Gave me some bullshit about dry rot and losing their license, like I gave a shit.I told them to go fuck yourselves, this is a fucking racket and you just want to soak me for tires I don't need. Fucking NY state and all its rules. Fuck.I have alternate solutions, like printing up my own sticker, which I've done twice before and even went through police check points without incident (gotta love photoshop). Meanwhile, silver is up, so fuck NY. What a fucking scam state.If you ever think about visiting NY make sure you have plenty pf preparation H handy. You'll likely need it.Everything is fake. I hope it all goes stright to hell.

gm_general Aug 28, 2017 6:37 PM Permalink

The usual day goes like this:6-7am - futures down slightly9am - futures ramped up mysteriously into open10-11am - starts to head south till its a few points negative3-4pm - makes inexplicable comeback to be green 1-2 pts.Rinse, wash, repeat.

tropicthunder Aug 28, 2017 5:05 PM Permalink

Gotta hand it to the Bankster-Shyster-JooBoys yet again. How many "disorderly" events have there been in Gold and Silver Futures/LBMA this year with ZERO INQUIRIES FROM THE CFTC or the UK-FSA. No investigations, no fines, no nothing except a well-done, pat on the back for screwing the small spec each and everytime.

adr Aug 28, 2017 5:03 PM Permalink

Of there is a HAARP weather manipulator, they sure used it here. Nothing like a natural disaster to provide cover for shenanigans. If GDP goes negative for the first time since 2009, they can blame the storm instead of Fuck St. 

Juggernaut x2 adr Aug 28, 2017 5:18 PM Permalink

Or it could be that that moist Gulf air and warm gulf water is just a natural conduit for hurricanes- it may seem like there are a lot of "big hurricanes" but when you figure that mankind has been on this earth for a nanosecond in earth's history this stuff is not that big of a deal.

In reply to by adr

rbianco3 Aug 28, 2017 5:01 PM Permalink

I went on record about my crypto-liquidation for gold last night while it was still in 1200's.When gub-mint is forced to pay the bill- gold should get a nice fear bounce.

buzzsaw99 Aug 28, 2017 4:29 PM Permalink

hurricane sandy left a quarter inch of rain and new york city got $200B but Houston will only get about tree fiddy bitchez and they are under ten fucking feet of water.  this country needs an enema.

sgorem Aug 28, 2017 4:23 PM Permalink

"HOUSTON, WE HAVE A PROBLEM!"............yeah, like nobody gives a shit. we can already see our fucking tax dollar$ going down the "drain" by incompetent government bureaucracy, fraudulent claims by uninsured, legitimate Texans & illegal immigrants, business owners, car dealers, INSURANCE COMPANIES. just like new orleans and new joisee, the raping of the tired and withered american taxpayer will once again be upon us as the federal, state, and local governments start their "woe is me" bullshit, and we can sit back and watch our tax dollars going down the fucking "drain".....again. it must be a excruciatingly  good feeling having NO money, but spending other peoples money ad infinitum........... btw. love Texas, but hate houston/dallas/austin.

Anteater ReturnOfDaMac Aug 28, 2017 4:25 PM Permalink

Think of the kilotons of silver doubloons under that flood water,that will have to be dug out of the mud, only to find them turneda blue-gray and no longer tradeable on the coin bazaars or pawnshops. You'd get exactly one quart of gas for your silver dollar, lol.They probably wouldn't even accept it as cash! Looks counterfeit.WINNING! NADA!!

In reply to by ReturnOfDaMac

WorkingPawn Aug 28, 2017 4:18 PM Permalink

Don't worry, "someone" will drop $2 billion in paper gold on the market in a few seconds in the middle of the night to monkey hammer gold back down.  The central banks can't let gold go up - it would make them look bad.

Stan522 Aug 28, 2017 4:11 PM Permalink

Gold is your disaster recovery mechanism..... In the meantime, we just have the bankster's manipulating it and driving everyone nuts who watch it.....

earleflorida Countrybunkererd Aug 28, 2017 4:44 PM Permalink

here's a simple wikipedia [scroll to TEXAS], link (note: refineries in TX. will postpone shutting down for the 'Winter *** Blend') many friends in beaumont, tx., but flooding prevents himself/ employees crossing bridges to get to refinery today (Ps. Houston soil is clay and not sand--- Bad!!!)https://en.wikipedia.org/wiki/List_of_oil_refinerieshttp://www.energytrendsinsider.com/2007/09/14/refining-101-winter-gasoline/     (***)

In reply to by Countrybunkererd

Countrybunkererd earleflorida Aug 28, 2017 5:15 PM Permalink

Baytown and Lake Charles refineries ALONE are 1/2 of Canada's production of roughly 2mmb/d.  We have a week or two before shortages (If production doesn't go back online) but if the storm re-develops and hits Luzianer and takes out more capacity who knows.  But for all I know they will be running full tilt tomorrow!!  If Beaumont is having issues already (as you suggest) and Lake Charles goes down.  Well, WOW.  I no longer have close enough connections to Exxon's Baytown facility or I would ask.Since you did your part...I can't link it w/o their crap of wanting paid.  search refinery capacity by country.

In reply to by earleflorida

D.r. Funk Aug 28, 2017 4:09 PM Permalink

2 triple-4 looks like it was -aimed-for- again. We've seen 4s come up in different areas the last few months. With less coincidence factor. Everyone wants to hound the person mentioning it but, uh, yeah, the last 45min, drifted PRETTY EVENLY, up, to

Keltner Channel Surf jrock Aug 28, 2017 5:24 PM Permalink

Well, the Russell 2000 didn’t go up from 9:45 – 10:30, 11 – 12, or 12:15 – 12:45.  The point being that algos automatically constrict their intraday dragonfly saw-toothing ranges when volume is only 66% the already pathetic daily average, so if you’re using anything beyond 5-min charts on days like this, the odds of disappointment are rather high. On a positive note for RUT bears, we did top out at the ubiquitous Daily 20EMA, the most important of all algo levels, on not only small caps, but also COMP and SPY, so it’s likely some Big Boyz are re-shorting to potentially join small caps at plunging to the 200 DMA.  Of course, that also means that low-volume short-goosers will be in their element pre-Labor Day, so expect the standard late summer skirmish.  Get your popcorn … 

In reply to by jrock

ET (not verified) Aug 28, 2017 4:10 PM Permalink

Gold and Silver to the rescue.

You can keep them underwater for hundreds of years and they will still hold their value.

Kaiser Sousa Aug 28, 2017 4:07 PM Permalink

Physical Gold & Silver screaming "tic, toc, mother fuckers..."DEATH TO THE MONEYCHANGERS.ps: still ignore the phony debt coupon dollar prices of the only 2 forms of REALMONEY!keep stackin'.

chubbar BlueHorseShoeLovesDT Aug 28, 2017 4:21 PM Permalink

Can anyone tell me why every fucking time something happens in any market, it has to be pinned on something unrelated? How the fuck does the author know why gold got bid or why stocks didn't? This shit happens a few times a month and every time these financial gurus need to come out and explain why, when often times it has nothing to do with anything other than the vagaries of investor preferences.

In reply to by BlueHorseShoeLovesDT