This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Dumbest Things on Wall Street This Week: April 19

Stocks in this article: CXW HLF CCL

3. Gold Bulls Gored

Sometimes market participants voluntarily say silly things or make dumb moves. Other times -- like this week -- the market's unforgiving uncertainty simply makes them feel dumb.

Yep, gold bugs, we're talking about you. You've had a nice decade-long run, so suck it up.

The yellow metal was suddenly and unexpectedly shellacked Monday, sending panicked gold investors scurrying. Gold for June delivery on the COMEX dropped $140.30, or 9.3%, to $1,361 an ounce, marking the largest percentage drop in gold since Feb. 28, 1983, when the price dropped 12.1%.

"You had a perfect storm of circumstances prevailing: you had technical chart patterns being broken, you had the Cyprus situation, you have the GDP in China, you had the backwardations in crude oil beginning to narrow dramatically . . . you have a new crop of corn that looks like it's going to be sizable being planted," Dennis Gartman, editor of The Gartman Letter, told TheStreet.

In your face gold bugs! You got creamed by corn! What's next, getting bitchslapped by Bitcoins?

Furthermore, it's not like you weren't warned. Goldman Sachs (GS), the gold-standard of investment banks mind you, lowered its gold price forecast last Wednesday before the deluge. Goldman lowered its average 2013 gold price forecast to $1,545 an ounce from $1,610 an ounce, and reduced its 2014 average target to $1,350 an ounce from $1,490 an ounce.

Nicely done Goldie! If only you served up the same prescient "sell" calls on eToys and your other crappy internet IPOs, not to mention your homemade toxic mortgage bonds, then maybe you wouldn't find yourself spending so much time looking up Sen. Carl Levin's (D., Mich) nostrils during Congressional hearings. Don't you think?

Anyway, speaking of toxic mortgage bonds, Paulson & Co.'s John Reade said in a statement that it established its gold position in April 2009 at an average cost of $950 an ounce and was continuing to hold the metal. John Paulson, if you remember, made billions shorting faulty mortgage bonds in the so-called "greatest trade ever" and subsequently plowed much of those winnings into gold.

"While gold can be volatile in the short term, and is going through one of its periodic adjustments, we believe the long term trend of increasing demand for gold in lieu of paper is intact," added Reade.

"Periodic adjustments"? Are you serious, man?

This was no regularly scheduled chiropractic appointment. There was no minor back-cracking here. This was a complete and utter spine-crushing selloff.

The kind where so-called brilliant hedge fund managers appear stunningly stupid -- like the rest of us -- because they haven't been tipped off by their literally "fabulous" Goldman brokers.

3 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs