Markets Gone Wild

Tyler Durden's picture

It all makes so much sense... risk markets everywhere have gone vertical. As we noted earlier, "with the US trading session today at half mast, expect another  record low volume half-trading day, which means a risk levitation is practically guaranteed." QED. And yet something appears broken - just look at these cross-asset class charts... oh and of course EURUSD surges to 1.2952 as the Eurogroup Summit has been confirmed as 'called off'. Is repatriation risk-off flow driving the correlated ignorance of algo-based risk-on? 300 pips in 10 days. S&P 500 back above 1400. Gold pushing $1750. This move seems to be entirely driven by technical stop-runs everywhere as EURUSD blows through its 50DMA, S&P 500 Futures cross above the 100DMA, and Gold blows through the 50DMA. Efficient markets forever...

EURUSD stupidity - or all reptariation all the time...


Commodities mad...


and S&P 500 futures have auctioned up to post-election open and Draghi levels...


The move appears extremely synthetic - i.e. top-down - with big individual names largely unmoved by today's action.


Charts: Bloomberg

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gjp's picture

Get em while they're worth something.  Limited edition, may not be worth anything in 2013.

Nothing To See Here's picture

Unlimited Edition, courtesy of your friendly Federal Reserve board

kliguy38's picture

Don't buy gold its a relic and ya can't eat move along and get back to your gameboy

DoChenRollingBearing's picture

Anecdotal evidence I know, but I have been seeing some scarcity of Gold Eagles in SE USA coin shops.

SaveTheBales's picture

I dunno.  Charlie may have a point.

Just think: if we'd skipped stacking altogether and just bought BRK puts, we'd be doing slightly better.  So the dude's not completely wrong -- just talking his book.  Well, hell.  Who doesn't?

Personally, I think it was part of a fiendishly clever ruse to keep the price of gold down so Charlie himself could back up the truck.

slaughterer's picture

All markets are one big Tom Lee - run WalMart today.  

Water Is Wet's picture

"Black Friday sale on USDs."

Dafuq? You think this is a sale?  Overpriced confetti.

They Tried to Steal My Gold's picture

Devaluing perpetually at a mall near you.

2013 Black Friday - "Merchants now giving discounts only with payment in Gold and Silver"....

Flounder's picture

you see what happens Larry when you devalue the dollar

dereksatkinson's picture

The dollar is breaking pretty big technical support.

Boilermaker's picture

How fucking surprising.  Right on a huge shopping day.

1,400 SPX. 

I would have never thunk it.  Great post re-re-re-re-re-re expressing the obvious.

Nothing To See Here's picture

I love the smell of spiking precious metals with my morning coffee

Bay of Pigs's picture

And where are the US Doelarr bulls who were yapping it up this week?

How's that Euro short coming along?

youngman's picture

Maybe the Brazilians are buying gold

adr's picture

JCP gaining 50% today would make just as much sense. So why not. Maybe RIM can gain 6400%.

Does it really matter anymore?

Debeachesand Jerseyshores's picture

Looks like the "shorts" are covering their bare asses with this shorten secession today.

mdtrader's picture

Short squeeze to 1400 completed as predicted. I now expect the markets to be clumped lower when people return to work next week.

PUD's picture

The giant ocean of "money" created out of thin air has to go somewhere. This is why fundamentals do not matter. Until something truly breaks...oil, war, default, euroexit etc...why act so surprised?

LawsofPhysics's picture

Correct.  When the supply lines for essential commodities breaks, then and only then does any of this get real.

Same as it ever was.

Bay of Pigs's picture

You're coming along nicely PUD, but some fundamentals do matter.

Gold (real money) is set to rise for the 13th straight year. Dow/Gold is 7.5, down from 44 in 1999.

DoChenRollingBearing's picture

Yep.  If the scarcity of gold I have seen at the retail level continues, I would much more prefer buying physical gold than the Dow.

Jack Napier's picture

Speaking of scarcity, how about opening up the coffers at the COMEX and taking a look at their silver inventory. *crickets*

Winston Churchill's picture

Risk on is shopping on Black Friday.

LawsofPhysics's picture

In all instances where a country lost faith in it's currency, I do believe that the "markets" shot to the moon just before hyperinflation and chaos set in.  Prosecute the fucking fraud at all levels of society.  It will happen on way or another.

Winston Churchill's picture

Only in Kangaroo courts I'm afraid.

We are now even more morally bankrupt than financially,if thats possible.

Nothing To See Here's picture


The financial bankruptcy is a result of society's moral bankruptcy.

"The state is that great fiction by which everyone tries to live at the expense of everyone else." - Frederic Bastiat

DoChenRollingBearing's picture

+ 1  Yes, yes, yes.  Our moral bankruptcy is the elephant in the roomo no one wants to talk about.

falak pema's picture


lol; mindset....what haven't I written here on this subject! 

Bohm Squad's picture

Not only possible, but predictable.  The two go hand-in-hand.

EnslavethechildrenforBen's picture

Criminals, wearing white collars and cashing their government checks, are employed at all levels of the pyramid scheme. If we can't get to the ones at the top, maybe we can get to the ones at the middle or bottom. How about we start by placeing all the cops under citizens arrest?

Or, at the very least, stop selling them food, gas, etc. Stop talking to them. Ignore them. Give them the silent treatment. Don't encourage them. They are the Redcoats

Inthemix96's picture

The bernank has plugged in his very special 'reflux apex perculation machine', and decided now is the time for shenanigans.

The filthy little bastard what he is.  On a brighter note, it is Friday, you now have two lovely days off work before starting the whole game again Monday.  Have a good weekend ZHers.  Whoever you are


falak pema's picture

so much for euro scepticism fed on budget gridlock!

The market seems to love it. The more the EU is in grid lock the more free is Count Draghi, the real king; not those Euro eunuchs sitting in Brussels.

And the markets love Draghi to be free of all constraints! 

EurUSd now : 1.2968.

slaughterer's picture

I challenge ZH to mention the exact level we should start re-shorting ES.  Please, step up to the challenge.   At this point, I see a re-test of the 50DMA around 1425 on Black Monday.  

J 457's picture

1,410 before the drop to 1,280.  Fiscal cliff not going away until Dec 22 where last minute compromise will be reached. 

ekm's picture

My definition of the stock market:



This is panic, pure and clean panic. It's forced buying on the hope that some idiot is left to buy the shit that primary dealers own.



scatterbrains's picture

so game theory is to get short before the fiscal cliff frame work bullshit fails.. on the assumption that the legal insiders (congress) through MSM and the primary dealer pumpage are building short positions into this manipulated market, and again, never letting a crisis go to waste ?

I think we can assume that what ever direction the market heads into the deadline should be faded with everything being a staged manipulated show these days. If we drift lower into the deadline get long, a drift higher get short.

StoleYourMoney's picture

Great setup for monday's short.

DavidC's picture

Stopped out by that magical pop on the EURUSD the other night, stopped out on the magical pop on the US open. OK, maybe I'ma mug for continuing to short this market, but when it goes, it's going to really blow.

How can NOTHING from the Eurozone the other night, BAD job figures on Wednesday, bad US Mich figures the other day result in a 200 points Dow, 22 point S&P RISE? Even Bernanke wasn't pushing a good side the other day.


1fortheroad's picture

David, you dont understand. 




We know its a Ponzi scheme, they know its a Ponzi scheme but for them its life or death.


The powers that be will do everything to keep it alive.


Save yourself some grief.

CrashisOptimistic's picture

If you buy farmland, you'll stop caring about this stuff and have confidence in returns on your investment.

CrashisOptimistic's picture

This is all about Greece.  Greece is what has the potential to explode swaps and take the whole system down.  Nothing else does in the near term.

The market is convinced that with nothing having changed, at all, the EU Fin Mins will reach agreement on Greece on Monday, where they could not last Monday or the Monday before that.

If they don't, and it's hard to see how they can, this will all go into freefall.

DavidC's picture

And then Spain...and then France...and then Italy...and then UK...and then....


1fortheroad's picture

Im all in



Long Cockroaches and ammo and AG

Silversinner's picture

Gold up 1%,silver up 2% let see if the cap holds.

 p.s I am all in too.

Boeing Boy's picture

not quite all in, waiting for 18++

Boilermaker's picture

CNBC talking heads are slinging jizz at the cameras.

ekm's picture

People, people, people.

Stop chasing the news. It's got nothing with the news.


We are beyond the point of market decline. This stock market cannot possibly decline. It can only crater, otherwise the owners (primay dealers) of super uber hyper priced stocks have no other option but keep buying until the weakest link (s) collapse.

Go home and eat turkey. One second or minute or day or month, one time, it will crater.