Gold Pops As Bitcoin Drops, Dollar Snaps Longest Win Streak Since Jan 2016

"Contained"...

 

Post-FOMC, Gold was the biggest gainer...

 

US Equities were holding to gains but tumbled in the last few minutes with the S&P turning red...

 

Nasdaq manged to hold gains after The Fed...

 

VIX was noisy around CPI early on and snapped higher into the close (breaking above the terrifying level of 10.00)...

 

Financials had an ugly day...

 

High Tax stocks underperformed Low Tax stocks again (though did ramp after headlines suggested a deal was close)...

 

Bonds and the Nasdaq were bid after the Fed...

 

The initial moved after the FOMC was 2Y yield lower and 30Y higher (a modest steepening) but as Yellen spoke so the long-end rolled over...

 

Overall yields fell notably on the day - with 10Y stumbling oince again at the 2016 close...

 

On the week, yields are all lower...

 

After 7 straight days higher - the longest streak since January 2016 -

 

WTI/RBOB sank on the day after a big gasoline build and record production...

 

Gold's gain today was Bitcoin's loss - its worst down day in a month...note that gold was snapped higher early on when Core CPI disappointed and seemed to catalyze the weakness in crypto...

 

And notably bitcoin futures tumbled to erase the spot-futs premium...

Comments

Hammer823 Wed, 12/13/2017 - 16:03 Permalink

Rally Program #1 run today.  No matter what the FRB does, it will be “good” for the market.  If you want to know why, simply review the liabilities of our public pension system. Pensions are severely underfunded after a decade of 0% interest rates.  The saving grace has been this engineered bull market.  Poor stock performance as a result of a recession would be a disaster.  Remember, pension fund success depends on 8% returns per year, FOREVER.  A never ending bull market is a requirement, not an option left to free market forces.And don’t forget that over $2 Trillion in taxes are due by Baby Boomers on their 401K’s. Uncle Sam can’t collect what he needs if the market crashes.Our financial system simply cannot withstand another downturn. So there won’t be one.Why else do you think bad news is always “shrugged off” or turned into something “good”. The stock market is just another Federal Program.  Think of it as a Social Security fund for the rich. Trade accordingly.

maxblockm Vlad the Inhaler Wed, 12/13/2017 - 22:18 Permalink

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In reply to by Vlad the Inhaler

Peak Finance InDisbelief Wed, 12/13/2017 - 16:15 Permalink

They WILL eventually lose the stock market. Blockchain KILLS every old economic idea. Instead of doing a bullshit stock offering and kissing government ass and spending minimum 100K for a public offeringI just gather all of my company assets, income, and issue a "token"The value of the Token is backed by the value of the company.Instead of dividends, I buy back my tokens to increase their value. (Or I can issue dividends in either another coin or your countries flat to you, your choice)The token has a cash value, you can hold them, trade them like stocks, do swaps, whatever. Since the company ledger will ALSO be on the blockchain, you can completely audit the entire company whenever you like, since all of the revenue and expense transactions will be on the blockchain, and the real estate / other capital holdings will be on a separate blockchain. No government required. No TRUST required, it's all right there on the blockchain. issue a token. 

In reply to by InDisbelief

D.r. Funk Wed, 12/13/2017 - 16:12 Permalink

So, you really think earnings will catchup now that Qe1 Qe2 Qe3 Qe4 Thetwist Zirp EcbQe and Buybacks, has been exhausted?And, now, earnings will catchup to price? Get Outta HereSHILLER 32.4 see my finger =100% OVER THE MEDIAN AND AVG=SUB 11 VIX fabricated forced operation 3% DRAWDOWN LAPSE closer to reaching that point of elimination ADDITIONAL FORGED LEG not gonna convince me [it] can go forever PROGRAMMED ATH PSYOP ' cant go forever '=

pliny the longer Wed, 12/13/2017 - 16:12 Permalink

gold pop on rate hike day?  now we've f;ing seen it all.  what in the actual F.  I love it, when you look at the world, what looks stable/steady for long term?  what one thing?  geopolitical tensions high, politics and populace factured and at each others throats (thanks BLM), price of perfection in all asset classes, its just downright nutty.  This shit show is gonna fade and soon me thinks, one opinion.  at least crop yields were record high (for the 5th straight year).  At least that should continue forever . . .   

Keltner Channel Surf Justin Case Wed, 12/13/2017 - 17:06 Permalink

Close, but not quite a cigar (at least not the expensive kind).Gold does NOT move directly with price inflation, but instead with expectations for real interest rate moves [‘risk-free rate’ (Fed controlled) minus inflation], an -0.82 correlation (i.e., strongly inverse).  Think of it as "unchecked" inflation instead.  Today’s catalyst that largely unwound the prior week’s down move was the weaker CPI.  While on the face of it you’d expect lower inflation would increase the real rate (subtracting a lower number) and hurt gold, given the down move was sharp and purely from fear the Fed was behind the curve (especially with the uncertain impact of the tax plan and a new Fed honcho) and would need to hike more quickly, thus increasing the real rate trajectory, weak CPI suggests their glacial pace can continue, so no big upslope, at least near term, in real rates.  (Remember, markets react to facts and expections, and not month-old FOMC minutes or Yellen's spin.)  Thus, we boomerang back.

In reply to by Justin Case

gunzeon Wed, 12/13/2017 - 16:24 Permalink

gawd ! fuck ! another bullshitter !"pops" to $50 below what it was a few weeks back "pops" ffs !wasta time ! Has this guy heard that gold is officially dead meat ? Crypto has taken over.Mark my words, if gold's not sub 1000 next year i'll eat my ....

HRClinton gunzeon Wed, 12/13/2017 - 16:52 Permalink

It's ok, it's ok. Us BTC HODLers will just BTFD on AU.It's about time that someone besides China benefits from AU Oppression. I'm my own banker now: BTC + AltCoins + AU + Diamonds.Peeps outside USrael are willing to take my mix of "money" to sell me their Property. How do you think I just got the nice, spacious condo with great amenities and view in Switzerland?But you Doomers should not try this at home. It's too dangerous. With the IRS and all. You'd best hold on to your guns, gold and stocked bunkers.

In reply to by gunzeon

maxblockm Garciathinksso Wed, 12/13/2017 - 22:22 Permalink

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In reply to by Garciathinksso

shankster Wed, 12/13/2017 - 16:39 Permalink

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