Biderman’s Daily Edge 3/13/2012: Stock Could Drop 50% When Fed Fix Ends
from Silver Doctors:
Massive paper silver dumping continued with today’s March FOMC statement. Beginning exactly at 2:15 pm EST, 90 million ounces of paper silver were dumped on the market over the next 15 minutes, and a total of 132 million ounces over a 30 minute period from 2:15-2:45pm EST.
As can be seen on the 1 minute chart below, at precisely 2:15, silver was raided from $33.47 to $33.25 within seconds of the FOMC news release that the Fed stands ready for further easing with volume of nearly 2,500. Silver then spiked from $33.25 to $33.64 at 2:16 EST. This spike was met with another immediate paper raid, crushing silver back to $33.23 within 2 minutes.
Read More @ SilverDoctors.com
Massive paper silver dumping continued with today’s March FOMC statement. Beginning exactly at 2:15 pm EST, 90 million ounces of paper silver were dumped on the market over the next 15 minutes, and a total of 132 million ounces over a 30 minute period from 2:15-2:45pm EST.
As can be seen on the 1 minute chart below, at precisely 2:15, silver was raided from $33.47 to $33.25 within seconds of the FOMC news release that the Fed stands ready for further easing with volume of nearly 2,500. Silver then spiked from $33.25 to $33.64 at 2:16 EST. This spike was met with another immediate paper raid, crushing silver back to $33.23 within 2 minutes.
Read More @ SilverDoctors.com
John Stossel on the Media, Liberty, and Why He Doesn’t Miss Working for ABC
Platinum regains its premium to Gold
Trader Dan at Trader Dan's Market Views - 34 minutes ago
For the last six months or so, platinum has been trading at a discount to
gold. This is a rare occurrence as one can see from a glance at the monthly
chart going back to 1990. Only in 1991 did platinum trade at a discount to
the price of gold. Late last year and early into this year, an ounce of the
white metal was over $200 cheaper than an ounce of gold!
This came about due to fears that the global economy would slow down as
European sovereign debt woes sent out a type of contagion rippling across
the planet. Auto sales especially would be hit and since platinum is
heavily used i... more »
FOMC results: ZIRP to 2014 and then they raid gold and silver/Another scandal at a commodity company/
Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 2 hours ago
Good
evening Ladies and Gentlemen:
Gold closed today down $5.80 to $1693.70 Silver closed up by 20 cents
to $33.54.
All eyes were on what Bernanke might say today at 2:15 after his FOMC
meeting. He basically said nothing but that was enough for the bankers
to whack gold/silver in the access market with few counterparties. I
urge you all to buy only physical and avoid the comex. Be thankful
Complacency Index hits 45 month low in today's trade
Trader Dan at Trader Dan's Market Views - 3 hours ago
I like to term the VIX or the CBOE Volatility Index, the Complacency Index,
because it is an excellent gauge of whether or not traders are complacent
or fearful. The higher the reading, the more fearful or worried they have
become. The lower this index reads, the more complacent or careless they
generally are.
One has to go back a period of 45 MONTHS (June 2007) to find investor
psychology at these levels of complacency in regards to the broad stock
market as indicated by the S&P 500. I should point out that this was one
year prior to the credit meltdown of the summer of 2008. It wo... more »
from The Financial Survival Network:
“Ranting”
Andy knew exactly when the Elites were going to hit gold and silver
again. In fact, he has a chart where he is able to show with fairly good
accuracy when the next raid will occur. When you’ve followed these
markets for as long as Andy Hoffman has, the constant rigging and
manipulation starts to become as predictable as the lunar calendar.
While there may not have been a full moon last night, the powers that be
are often found howling at the moon in an effort to maintain the status
quo.
According to Andy, you shouldn’t be surprised to see another raid in about one week’s time. Trying to keep gold and silver from breaking out to new highs can be a full-time job. This is because an uncontrolled rise in the metal prices will eventually lead to a loss of confidence in unbacked paper currencies. You should know by now that Da Boyz wont allow a loss of confidence in unbacked paper currencies to occur, not matter what the cost.
Tune in next week and see if Andy’s chart hits pay dirt.
Click Here to Listen to the Podcast
from The Financial Survival Network:
“Ranting”
Andy knew exactly when the Elites were going to hit gold and silver
again. In fact, he has a chart where he is able to show with fairly good
accuracy when the next raid will occur. When you’ve followed these
markets for as long as Andy Hoffman has, the constant rigging and
manipulation starts to become as predictable as the lunar calendar.
While there may not have been a full moon last night, the powers that be
are often found howling at the moon in an effort to maintain the status
quo.According to Andy, you shouldn’t be surprised to see another raid in about one week’s time. Trying to keep gold and silver from breaking out to new highs can be a full-time job. This is because an uncontrolled rise in the metal prices will eventually lead to a loss of confidence in unbacked paper currencies. You should know by now that Da Boyz wont allow a loss of confidence in unbacked paper currencies to occur, not matter what the cost.
Tune in next week and see if Andy’s chart hits pay dirt.
Click Here to Listen to the PodcastGold crashes through support at $1680
Trader Dan at Trader Dan's Market Views - 5 hours ago
With the mass exodus out of safe haven trades today and into stocks, gold
is being sold off with the idea of taking those funds and plowing them into
the equity markets to catch the rising tide.
The result of this long liquidation has been a breach of a very important
downside support level near $1680 on the charts. The market is holding
within the support zone noted that extends down past this level but it will
be critical to the metal to hold today's low and last week's low if it is
to prevent a further bout of long liquidation that could very quickly take
it down to $1620 or even... more »
SP 500 and NDX Futures Daily Charts - JPM Front Runs the Fed
The Greatest Truth Never Told: The 3 Coming False Flags
from King World News:
With
Europe desperately trying to stabilize the Greek crisis, today Nigel
Farage told King World News that despite European leaders pretending
everything is okay, there is total denial and the ceiling is falling in.
He also said the Germans and Swiss want their gold back. But first,
here is what Farage had to say about the ongoing crisis in Greece: “It
was very odd, I mean we had Mr. Van Rompuy, President of the European
Council and Mr. Barroso, the Commission President, in Parliament this
morning and it was remarkable. Two speeches from the two big bosses,
both saying everything is absolutely wonderful. We have no difficulties
at all and the recent Greek agreement has all gone off very smoothly.
There is absolutely nothing to worry about.”
Nigel Farage continues: Read More @ KingWorldNews.com
Sean Corrigan presents an interesting chart for everyone who still believes that, contrary to millennia of evidence otherwise, money is not fungible. Such as the Lerry Meyers of the world, who in a CNBC interview earlier said the following: "I’m sorry, I’m sorry, you think he doesn't have the right model of inflation, he would allow hyperinflation. Not a prayer. Not a prayer. If you wanted to forecast inflation three or four years out and you don't have it close to 2%, I don't know why. Balance sheet, no impact. Level of reserves, no impact, so you have a different model of inflation, hey, you like the hawk on the committee, you got good company." (coupled with a stunning pronouncement by Steve Liesman: "I think the Fed is going to be dead wrong on inflation. I think inflation is going up." - yes, quite curious for a man who for the longest time has been arguing just the opposite: 5 minutes into the clip). Because despite what monetary theorists say, monetary practitioners know that money always finds a way to go from point A (even, or especially if, said point is defined as "excess reserves" which in a stationary phase generate a ridiculously low cash yield) to point B, where point B are risk assets that generate the highest returns. Such as high beta stocks (and of course crude and other hard commodities). And the following chart of Inside vs Outside Money from Sean Corrigan shows precisely how this is accomplished.
The money for Greece has not yet been wired, and already a deeper dive into the previously released Troika report shows what is glaringly obvious to anyone who follows the actual collapse of the Greek economy: that the country is already on course to miss its budget targets for the immediate future (for insane EU assumptions on what the Greek economy should look like through the lens of a Eurocrat, see our chart of the day). The Telegraph reports: "Athens has probably cut spending enough to bring its primary deficit down to 1.5pc this year as agreed. But "current projections reveal large fiscal gaps in 2013-14" according to a leaked draft report by the European Union (EU), the European Central Bank (ECB) and the International Monetary Fund (IMF). In its report, the troika said Athens will have to impose further fiscal cuts of as much as 5.5pc of GDP to meet next year's targets." And while Europe may be terminally fixed, translated this means that the aborigines of the southern colony of Bavaria Sachs will see their wages cut even more, and even more people will be unemployed soon just to appears the first lien debt holders. This in a country of 10.8 million where just 36% of the population works. So Greece, which today received a rare bit of highly irrelevant but good news, when Fitch became the first rating agency to upgrade the country's credit rating from Default to B- (even as its new bonds saw their yield surge to 19% on the second day of trading), will in a few short months be forced to once again deal with even more consequences of being the proud recipient of the inverted European bailout, whereby the country's gold is used to fund Eurobank capital shortfalls.
At this point it is safe to say that the world has far greater
issues than simple trade scalping and a broken market structure
courtesy of the few robotic algorithms that still trade, even compared
to three years ago. Back than it was far less obvious that the global
ponzi was on the edge every day, and that only coordinated efforts such
as today's one-two punch by Jamie Dimon and his subordinates at the
FRBNY could mask the fact that the stress test was never actually
needed, as any time banks suffer a 20% drop the Fed would simply proceed
to the New QE (pass go, and give the $200 direct to the banks). And
yet, years after the flash crash, pervasive central planning
notwithstanding, the High Freaks are still around, subpennying, stub
quoting, channel stuffing and otherwise making a total mockery of the
retail investor (at least the one who is dumb enough to put in a limit
order and not split up a big order into many tiny ones). Which is simply
stunning - by now, even if reading just a fraction of the hundreds of posts on the topic on this site alone of which this one may be the most encompassing, one would think that everyone, and that even includes the SEC,
would be well aware of the borderline criminal, and certainly
liquidity destroying (although volume spiking via churn), product that
is High Frequency Trading. Apparently not.
With
Europe desperately trying to stabilize the Greek crisis, today Nigel
Farage told King World News that despite European leaders pretending
everything is okay, there is total denial and the ceiling is falling in.
He also said the Germans and Swiss want their gold back. But first,
here is what Farage had to say about the ongoing crisis in Greece: “It
was very odd, I mean we had Mr. Van Rompuy, President of the European
Council and Mr. Barroso, the Commission President, in Parliament this
morning and it was remarkable. Two speeches from the two big bosses,
both saying everything is absolutely wonderful. We have no difficulties
at all and the recent Greek agreement has all gone off very smoothly.
There is absolutely nothing to worry about.”Nigel Farage continues: Read More @ KingWorldNews.com
Japan's Shocking Keynesian Slip: "We Are Worse Than Greece"
In a stunning turn of events, a Japanese Ministry of Finance official admits to Richard Koo's worst nightmare "Japan is fiscally worse than Greece". Bloomberg is reporting that, at a conference in Tokyo, Yasushi Kinoshita says Japan's 2011 fiscal deficit was up to 10% of GDP and its debt-to-GDP has soared to over 230%. What is more concerning is the Kyle-Bass- / Hugh-Hendry-recognized concentration risk that Kinoshita admits to also - with a large amount of JGBs held domestically, the Japanese financial system is much more vulnerable to fiscal shocks (cough energy price cough) than Europe. Of course, the market is catatonic in its reaction to this - mesmerized by the possibility of buybacks and hypnotized at big-banks-passing-stress-tests - though we do note the small reverse stronger in USDJPY has reversed as this news broke and the USD pushes modestly higher.Is This The Chart Of A Broken Inflation Transmission Mechanism?
Sean Corrigan presents an interesting chart for everyone who still believes that, contrary to millennia of evidence otherwise, money is not fungible. Such as the Lerry Meyers of the world, who in a CNBC interview earlier said the following: "I’m sorry, I’m sorry, you think he doesn't have the right model of inflation, he would allow hyperinflation. Not a prayer. Not a prayer. If you wanted to forecast inflation three or four years out and you don't have it close to 2%, I don't know why. Balance sheet, no impact. Level of reserves, no impact, so you have a different model of inflation, hey, you like the hawk on the committee, you got good company." (coupled with a stunning pronouncement by Steve Liesman: "I think the Fed is going to be dead wrong on inflation. I think inflation is going up." - yes, quite curious for a man who for the longest time has been arguing just the opposite: 5 minutes into the clip). Because despite what monetary theorists say, monetary practitioners know that money always finds a way to go from point A (even, or especially if, said point is defined as "excess reserves" which in a stationary phase generate a ridiculously low cash yield) to point B, where point B are risk assets that generate the highest returns. Such as high beta stocks (and of course crude and other hard commodities). And the following chart of Inside vs Outside Money from Sean Corrigan shows precisely how this is accomplished.
Guest Post: How Does FINRA Lose 8 Hours of Testimony? Wall Street’s “Kangaroo Court”
I will admit that having written extensively and aggressively about Wall Street’s self-regulator FINRA over the last three years, I did not think there was anything more I could see that would surprise me. Today I am surprised, shocked, and saddened. For those in our nation who have a semblance of decency and a desire to see due process reflected in legal hearings and financial arbitration, I believe you will be similarly dismayed. The case to which I will refer strikes deep into the core of Wall Street arbitration. I hope you are sitting down and do not have any sharp objects nearby as Dow Jones’ Al Lewis provides a scathing expose of a FINRA arbitration entitled Broker Bankrupted in Kangaroo Court,The money for Greece has not yet been wired, and already a deeper dive into the previously released Troika report shows what is glaringly obvious to anyone who follows the actual collapse of the Greek economy: that the country is already on course to miss its budget targets for the immediate future (for insane EU assumptions on what the Greek economy should look like through the lens of a Eurocrat, see our chart of the day). The Telegraph reports: "Athens has probably cut spending enough to bring its primary deficit down to 1.5pc this year as agreed. But "current projections reveal large fiscal gaps in 2013-14" according to a leaked draft report by the European Union (EU), the European Central Bank (ECB) and the International Monetary Fund (IMF). In its report, the troika said Athens will have to impose further fiscal cuts of as much as 5.5pc of GDP to meet next year's targets." And while Europe may be terminally fixed, translated this means that the aborigines of the southern colony of Bavaria Sachs will see their wages cut even more, and even more people will be unemployed soon just to appears the first lien debt holders. This in a country of 10.8 million where just 36% of the population works. So Greece, which today received a rare bit of highly irrelevant but good news, when Fitch became the first rating agency to upgrade the country's credit rating from Default to B- (even as its new bonds saw their yield surge to 19% on the second day of trading), will in a few short months be forced to once again deal with even more consequences of being the proud recipient of the inverted European bailout, whereby the country's gold is used to fund Eurobank capital shortfalls.
Does High Frequency Trading Add To Market Liquidity? Vote Here
At this point it is safe to say that the world has far greater
issues than simple trade scalping and a broken market structure
courtesy of the few robotic algorithms that still trade, even compared
to three years ago. Back than it was far less obvious that the global
ponzi was on the edge every day, and that only coordinated efforts such
as today's one-two punch by Jamie Dimon and his subordinates at the
FRBNY could mask the fact that the stress test was never actually
needed, as any time banks suffer a 20% drop the Fed would simply proceed
to the New QE (pass go, and give the $200 direct to the banks). And
yet, years after the flash crash, pervasive central planning
notwithstanding, the High Freaks are still around, subpennying, stub
quoting, channel stuffing and otherwise making a total mockery of the
retail investor (at least the one who is dumb enough to put in a limit
order and not split up a big order into many tiny ones). Which is simply
stunning - by now, even if reading just a fraction of the hundreds of posts on the topic on this site alone of which this one may be the most encompassing, one would think that everyone, and that even includes the SEC,
would be well aware of the borderline criminal, and certainly
liquidity destroying (although volume spiking via churn), product that
is High Frequency Trading. Apparently not.
from The Daily Bell:
China
slapped with rare earth trade dispute … The European Union, United
States and Japan formally asked the World Trade Organization on Tuesday
to settle a dispute with China over Beijing’s restriction on exports of
raw materials, including rare earth elements critical to major
industries. The EU’s trade chief, Karel De Gucht, said the three trading
powers were making the dispute settlement request, the first step
before filing a full trade case, following a successful EU challenge at
the WTO on similar restrictions earlier this year. “China’s restrictions
on rare earths and other products violate international trade rules and
must be removed,” De Gucht said. “These measures hurt our producers and
consumers in the EU and across the world, including manufacturers of
pioneering hi-tech and ‘green’ business applications.” − MSNBC
Dominant Social Theme: Gee, where would be without international trade organizations and the bureaucrats that run them?
Free-Market Analysis: Rare earth elements are not rare. You can count on it. Oil is not rare. Food is not rare. Water is not rare. These are all dominant social themes – scarcity memes – fear-based promotions of the power elite.
Read More @ TheDailyBell.com
In
the Spring of 2011, when Libyan oil production -- over 1 million
barrels a day (mpd) -- was suddenly taken offline, the world received
its first real-time test of the global pricing system for oil since the
crash lows of 2009. Oil prices, already at the $85 level for WTIC,
bolted above $100, and eventually hit a high near $115 over the
following two months. More importantly, however, is that -- save for a
brief eight week period in the autumn -- oil prices have stubbornly
remained over the $85 pre-Libya level ever since. Even as the debt
crisis in Europe has flared. As usual, the mainstream view on the
world’s ability to make up for the loss has been wrong. How could the
removal of “only” 1.3% of total global production affect the oil price
in any prolonged way?, was the universal view of “experts.” Answering
that question requires that we modernize, effectively, our
understanding of how oil's numerous price discovery mechanisms now
operate. The past decade has seen a number of enormous shifts, not only
in supply and demand, but in market perceptions about spare capacity.
All these were very much at play last year. And, they are at play right
now as oil prices rise once again as the global economy tries to
strengthen.
As noted earlier when we said that Jamie Dimon (who just happens to be one of two Class A directors at the NY Fed) just showed the Fed who is boss, the Fed has now been "forced" to release the Stress Test results today at 4:30 pm instead of as previously scheduled on March 15. Jamie Dimon is now officially defining the Fed's timetable. This is all in jest of course: Dimon would never do anything without preauthorization from Bill Dudley, which means that even as the FOMC statement was a big yawn, the JPM release less than an hour later was planned purely to ramp stocks into the close on the lack of a definitive promise by the Fed to keep printing. Well played gents.
(Ed note...If you have this much Gold...or Silver...Please consider supporting our efforts to keep you informed...)
Please consider making a small donation, to help cover some of the labor and costs to run this blog.
China
slapped with rare earth trade dispute … The European Union, United
States and Japan formally asked the World Trade Organization on Tuesday
to settle a dispute with China over Beijing’s restriction on exports of
raw materials, including rare earth elements critical to major
industries. The EU’s trade chief, Karel De Gucht, said the three trading
powers were making the dispute settlement request, the first step
before filing a full trade case, following a successful EU challenge at
the WTO on similar restrictions earlier this year. “China’s restrictions
on rare earths and other products violate international trade rules and
must be removed,” De Gucht said. “These measures hurt our producers and
consumers in the EU and across the world, including manufacturers of
pioneering hi-tech and ‘green’ business applications.” − MSNBCDominant Social Theme: Gee, where would be without international trade organizations and the bureaucrats that run them?
Free-Market Analysis: Rare earth elements are not rare. You can count on it. Oil is not rare. Food is not rare. Water is not rare. These are all dominant social themes – scarcity memes – fear-based promotions of the power elite.
Read More @ TheDailyBell.com
Guest Post: Understanding The New Price Of Oil
In
the Spring of 2011, when Libyan oil production -- over 1 million
barrels a day (mpd) -- was suddenly taken offline, the world received
its first real-time test of the global pricing system for oil since the
crash lows of 2009. Oil prices, already at the $85 level for WTIC,
bolted above $100, and eventually hit a high near $115 over the
following two months. More importantly, however, is that -- save for a
brief eight week period in the autumn -- oil prices have stubbornly
remained over the $85 pre-Libya level ever since. Even as the debt
crisis in Europe has flared. As usual, the mainstream view on the
world’s ability to make up for the loss has been wrong. How could the
removal of “only” 1.3% of total global production affect the oil price
in any prolonged way?, was the universal view of “experts.” Answering
that question requires that we modernize, effectively, our
understanding of how oil's numerous price discovery mechanisms now
operate. The past decade has seen a number of enormous shifts, not only
in supply and demand, but in market perceptions about spare capacity.
All these were very much at play last year. And, they are at play right
now as oil prices rise once again as the global economy tries to
strengthen.Fed Stress Test Released: Citi, SunTrust, Ally And MetLife Have Insufficient Capital
When we announced the news of Jamie Dimon's surprising announcement, we said that "Since we are now obviously replaying the entire credit crisis, from beginning to end, must as well go all in. Now - who's next? And perhaps just as importantly, who isn't." Who isn't it turns out are 4 banks that did not pass the Fed's stress test results. These are SunTrust, naturally Ally, MetLife and... Citi. Way to earn that 2011 $15 million comp Vic! To summarize: across the 19 banks taking the test, the maximum losses are projected to hit a total of $534 billion. But at least Jamie Dimon gets to pay his dividend. Also, the European LTRO stigma comes to the US in the form of banks who do dividend hike/buyback, vs those that do not.. and of course the 4 unlucky ones that fail the stress test entirely.As noted earlier when we said that Jamie Dimon (who just happens to be one of two Class A directors at the NY Fed) just showed the Fed who is boss, the Fed has now been "forced" to release the Stress Test results today at 4:30 pm instead of as previously scheduled on March 15. Jamie Dimon is now officially defining the Fed's timetable. This is all in jest of course: Dimon would never do anything without preauthorization from Bill Dudley, which means that even as the FOMC statement was a big yawn, the JPM release less than an hour later was planned purely to ramp stocks into the close on the lack of a definitive promise by the Fed to keep printing. Well played gents.
CBO Hikes 2012 Budget Deficit Forecast By $97 Billion In One Month, Sees $1.17 Trillion In Funding Shortfall
What a difference a month makes: back on February 7, the CBO released its first forecast for the 2012 budget deficit. The number then? $1.08 trillion. Just over a month later, the CBO has released its amended budget deficit. The bottom line this time around: an increase of just under $100 billion, or $1.171 trillion. Since this number is still about $150 billion less than the President's own scoring, or $1.33 trillion, expect even more revisions. And why not: this is simply debt that nobody will ever repay, and in exchange the money, which is finally flowing through the bottom line at least to the banks (JPM shareholders thank the US Treasury) will proceed to pad if not the middle class, then certainly banker bonuses.But not all is bad news: by 2022, the CBO, which has a pristine track record of predicting one decade into the future, sees a $186 billion reduction in total deficits compared to January. Let's not forget that b then Greece will have negative debt/GDP ratio.Please consider making a small donation, to help cover some of the labor and costs to run this blog.
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