Gold Pops, S&P Stops, And Bonds Have Best Month Since Brexit

One look at the last few days in stocks and all we can say is...

 

Gold and The Long Bond were the best performers in August with stocks and the dollar unchanged-ish

 

Trannies were best among the major indices in August followed by Nasdaq. Small Caps lagged. S&P just managed to close green for August.

 

Treasury yields tumbled in August... the biggest monthly drop for 10Y yields since Brexit (June 2016)

 

With the yield curve flattening dramatically... August saw 2s10s collapsed 15bps to below 80bps (the biggest flattening since Feb 2016) near its flattest level since Aug 2016

 

Debt Ceiling anxiety has exploded during August...

 

Despite the last two days panic-buying, The Dollar Index ended the month lower - the 6th monthly loss in a row... (NOTE the morning's spike on ECB leaks failed to hold and keep the dollar green for the month)

 

And notably, of all the majors, Yuan was the strongest against the greenback and cable weakest on the month (this was GBP's weakest month since Oct 2016)...

 

In virtual currency-land, Bitcoin surged 65% on the month to a new record high...

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Back to this week's action...

Today's biggest headline-maker was the 14% explosion in September RBOB futures as they expired (amid zero liquidity), but Oct Futs also spiked as more refiners were shut down...

 

Rather oddly, given the huge cut in demand (from refinery shutdowns), WTI futures spike today magically, back above $47...

 

All that mattered in stock land today was gettingh the cash S&P above 2470.3 for a green month... Sheer panic right at the close saved the day (S&P now up 9 of last 10 months)

 

FANG Stocks ended the month unchanged despite a massive 5% rip in the last week...

 

This week's meltup in stocks is entirely opposite to the strength in bonds and bullion...

 

10Y yields rolled back to a 2.11% handle today...

 

The Dollar Index spiked this morning as EUR tumbled on a Reuters story about ECB, but Mnuchin spoiled the party and the dollar started sinking...

 

Gold flash-crashed overnight (with spot breaking below $1300), but precious metals players just bought the dip and sent it back to the post-Korea-Missile highs...

 

Finally, we note that gas prices at the pump hit a 2-year high today... and The Fed's about to get its transitory inflation if RBOB plays through...

 

Comments

Honey-Badger (not verified) Thu, 08/31/2017 - 16:05 Permalink

Multi billion dollar notional interventions are having less and less of an effect.

ET (not verified) Honey-Badger (not verified) Thu, 08/31/2017 - 16:10 Permalink

The race for Physical Gold and Silver is on.The loser will be the one holding paper and digital claims for assets, especially crypto.Exchanges will take a bank holiday before cryptos are banned under Trading with the Enemy Act. Crypto without any cryptograpic qualities has no reason to exist. All we see is momentum and its momentum is slipping.

In reply to by Honey-Badger (not verified)

ET (not verified) Swampster (not verified) Thu, 08/31/2017 - 16:15 Permalink

Yes, that is why government is so enthusiastic about crypto.It is a pillar of the cashless society where all transactions can be monitored and prohibited at any time. Crypto without cryptographic qualities has no reason to exist.There is a reason why the creators of bitcoin have yet to reveal themselves. To reveal themselves would mean divulging classified materials and key members of the intelligence community.

In reply to by Swampster (not verified)

man from glad AR15AU Thu, 08/31/2017 - 17:13 Permalink

And selling something they don't have. So all this shorting has to be paid back buy buying gold. IMO Gold could explode higher if enough pain threshold is reached. I think the smart money IS rotating into Gold - or at least covering their shorts on dips. With Korea getting worse, US Russia China tensions getting worse it makes sense.

In reply to by AR15AU

khakuda Thu, 08/31/2017 - 16:06 Permalink

This market is doing exactly what one would expect when global central banks print as much money as they are currently, on top of all the money they have been printing for years and years.One has to wonder what their endgame is because this level of stimulus at this point makes no sense at all.

khakuda Clock Crasher Thu, 08/31/2017 - 16:15 Permalink

It seems they are already there.  Most people can't afford the cost of living anymore without enormous debts.  People work, paying the taxman and interest to the banker at every step, just to keep a roof over their heads and pay for the education they needed to get the job, car they needed to get to the job and healthcare they need to stay on the job.  Slavery indeed.

In reply to by Clock Crasher

Clock Crasher khakuda Thu, 08/31/2017 - 16:24 Permalink

There is still a lot of meat on the bone.  Right now two generations are living under the same roof.  That number needs to go to three generations.  Right now everyone (most) people have a car or three.  People will sell their cars in the future to the bank for food money and the banks send those cars to our debtors taking a big juicy cut for themselves. Right now the baby boomers have tons of fiat in their 401K's etc.  That big juicy cash horde needs to be transferred. But don't worry were working on it!

In reply to by khakuda

lester1 Thu, 08/31/2017 - 16:07 Permalink

Buying physical gold and Bitcoin !! For those do not understand cryptocurrencies, it's basically an international bank account that is decentralized and cannot be manipulated by central banks. It's basically a way to park your money outside of the system and earn a much better rate of return than a savings account or stocks.

Al Huxley Thu, 08/31/2017 - 16:08 Permalink

Faggy BIS bullion traders with their $7 'flash crash' last night didn't fool anyone.  What a bunch of losers - y'all should be working the till at 7-11, monkeys could dump gold futures with more style and flash than you guys do.

tropicthunder Thu, 08/31/2017 - 16:11 Permalink

Gotta hand it to the GoldSlugs. Maybe, just maybe Gold can ass rip through $1400 in September after a very strong finish to August.Still have way, way, way more confidence in BTC from a %gain standpoint but gold could have more leveraged opportunities this Fall.

adr tmosley Thu, 08/31/2017 - 18:32 Permalink

Give it up. If I made as much money as you supposedly had, I'd be drinking Belgian beer in the south of France driving my Bentley instead of posting on ZH. Of course if you did make millions of dollars with Bitcoin it would take years to transfer the money out with the $2500 a day limit on most exchanges. 

In reply to by tmosley

Al Huxley tropicthunder Thu, 08/31/2017 - 16:15 Permalink

Yeah, why buy a breakout from a 6 year consolidation when you've got the chance to chase the last leg of a massive bubble.  Why, I'd say there's as much upside in crytos right now as there was in tech in January 2000 - it will be SOOO exciting for a little while.  Fucking brilliant.  Because really, how exciting are gold bulls anyway?

In reply to by tropicthunder

Clock Crasher Al Huxley Thu, 08/31/2017 - 16:31 Permalink

how exciting are the goldbugs anyway?Vaguely.  GSR needs to start cascading and collapsing in rapid fashion causing the miners to parabola... Then we can start talking about excited.  Now its more like "how many months before we can challenge 1400" thinking going on in their heads.I'd say sentiment is encouraged.Good start none the less.  That 6 year downtrend is thoroughly violated.  Moving averages 1-6 hundred are staggered in numerical order and starting to fan out. Again.. very encouraging.

In reply to by Al Huxley