German Government Crisis Sends Stocks Soaring, Gold Down Most In 4 Months

Tyler Durden's picture

Following Friday's best day in 6 months, gold tumbled most in 4 months today as the German Government crisis sent investors fleeing any source of safe haven!!??

Sell bonds, sell gold, sell protection...


Before we get to the farce in US equities, let's look at German stocks...


Which is odd because EURUSD actually dumped it all back (after its own machine-driven ramp back to unch)...


Oh, yeah and don't forget Chinese stocks' miraculous lift!?

As Bloomberg's Vince Cignarella noted, strong earnings and solid global growth prospects continue to lift stocks while falling Treasuries and higher yields drove dollar gains; investors ignoring the Trump administration’s plan for fresh sanctions on North Korea and the failure of Angela Merkel to put together a coalition government in Germany. U.S. President Donald Trump said Monday he will designate North Korea a state sponsor of terrorism, subjecting the regime to additional sanctions. The EUR fell as coalition talks in Germany ended; German Chancellor Angela Merkel said she would prefer to go ahead with new federal elections rather than try to form a minority government. Gold and the VIX fell, punctuating the market’s disregard for global events.

Which brings us to US equity futures... (odd divergence between Dow and Nasdaq as cash markets opened)...


Small Caps were the day's best-performer... with a total meltup squeeze into the close...


This is the biggest 3-day short-squeeze since February...

NOTE what happened in the subsequent days the last time.


Once again we have The Bank of Japan and the algos to thank for this non-stop bid...


AT&T and TWX slid after anti-trust headlines...


HYG rallied very modestly today early on then sold into and beyond the EU close - notably underperforming stocks...


And credit risk worsened from the open while VIX was crushed...


Treasuries were initially bid (down 2bps) after Merkel's headlines but then as everything rebounded, bonds sold off (but the long-end outperformed)...


The UST weakness sent the spread to Bunds back above 200bps...


But the curve just keeps collapsing!!!


Just hammered...


The Dollar Index echoed the chaos in EURUSD today as the initial surge was met with machines selling all the way down to unchanged... which sparked a rebound...


WTI/RBOB both fell on the day..


Gold swung fron best day in 5 months to worst day in 4 months, breaking back below the 50- and 100-day moving-averages...


Bitcoin soared to new record highs above $8000 this weekend...


Sending Bitcoin's market cap above Nvidia's...


Finally, gold is still clinging to green post-Saudi chaos...

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shankster's picture

Must have more charts...I think that pic is when Merkel won the Miss Germany contest.

presk_eel_pundit's picture

I love it when they put these charts up showing huge moves, but when you at the Y axis the move is less than 1 percent.

Quantum Bunk's picture

All gold mines will shutter. 

TBT or not TBT's picture

With NiRP, the mines will re open profitably un refining PMs, diluting them into ore, and burying them 

gladih8r's picture

The Mediterranean Terrorist Import Index (MTII) must be tanking too.  Merkel and Soros are on the phone with each other, crying their dry tearless sorrows away. 

There, there Merkel, George is going to fix you up with some stem cell ice-cream.

Winston Churchill's picture

We've seen this before, somebody in the know is front running a major geopolitical shock.

Knocking down PMs in advance of a major jump up.

Plenty of possibilities.take your pick.Another war breaking out is my guess,also too many

possibilities sadly.

D.r. Funk's picture





bring it



BlueHorseShoeLovesDT's picture

Maybe Kim will nuke California, oh wait, isn’t that where you live?

D.r. Funk's picture

1. true and 2. ive been expounding that quite awhile and 3. the direct programming of indexes which some people deny in itself, exhibits bloodlust on shorts and has exhibited that fairly prolonged

Conax's picture

I like all the charts. You come here, see it all at once and done.

They have a burr under their blanket on gold and silver, don't they?

S c a r e d To D e a t h.  Lots of stoic paper longs are just waiting out there.

Don Pancho's picture

Gold wasent down IT WAS SMASHED 12,128 GOLD contracts in 60 sec's!

D.r. Funk's picture

Nice debt:gdp 105.85

Not significant but bumped up from 103 range in recent months

US degenerate debtwad


of A


SUB 11 VIX reinitiated, uh, laughoutloud, Seemyfinger


3% DRAWDOWN LAPSE closer to ending, they know it


ADDITIONAL FORGED LEG closer to ending, they know it



BlueHorseShoeLovesDT's picture

Another fucking waste of space.

Juggernaut x2's picture

What a circle jerk

spastic_colon's picture

notice again the DOW heavy weights..........when in doubt bang the top 5-10 names

MrSteve's picture

Bang the Top Five!?? was I supposed to have them on my Life (B)ucket List too? Gonna need a travel budget for that goal.

Theta_Burn's picture

Bitcoin with a market cap equal to Nvidia.

That's insanity on so many levels

Womb Service's picture

I agree. Down in the basement with Nvidia. Bitcoin is still hugely undervalued. Its market cap should exceed Gold's, since Gold is artificially held down.

SovietPepe's picture

Something something gold bars, guns & butter, sitting on my porch something something government is bad, something fiat something else. Thousands of years gold has something something jewelry something something people will always want gold something something bitcoin is just ones and zeros EMP something something.


Meanwhile I watch my Bitcoin climb & reach new highs everyday slowly but surely making me rich while you old farts complain and have aneurysms over the price.


You can keep your head in the sand or you can choose to get on the fucking rollercoaster!

Dontblamethegoat's picture

No one is rich until they sell ..... or in the case of BC, until they convert the BC into something they can use ...

cheech_wizard's picture

I said this before, but a well stocked bar in the man cave would be good.


Scuba Steve's picture

Sand is where the oil and the gold is ...

I'll stay in the sand.

vegas's picture

Same old shit different day ... 'Plunge Protection Teams" all over the world coordinating action ... part of that, of course is monkey hammering gold. Some day this manipulative bullshit ends, and it will be ugly.

cossack55's picture

Actually, some think it will be quite lovely. Now is ugly

D.r. Funk's picture




That implies conspiracy

Uh, yeah

Stock conspiracy being denied on the zh summary page is the indication of delusion and neutralization in play


gatorengineer's picture

Lets play guess the close last trading day of the year..... Mine are S&P 2650 and Dow 26000.  Be the closest win a stuffed PIIG....

FreeShitter's picture

I would say Dow 24.4 and SP 2610

cpnscarlet's picture

Had to happen - James Turk the Jerk was on KWN - Sure kiss of death...death by cheerleader.

And the Big Honker Holter thinks we want to buy his advice now!!!


FreeShitter's picture

Heads up on RIOT...its volatile as shit but its been moving up and up....I called PRELF last time and made a lot of folks richer ( I think it went up like 50+ % in a few days time)


Riot Blockchain Inc is a first mover on the NASDAQ focused on blockchain technology.

Riot Blockchain intends to gain exposure to the blockchain ecosystem through targeted investments in the sector, with a primary focus on the bitcoin and Ethereum blockchains. The rollout of this strategy has commenced with strategic investments in, and

Riot Blockchain has also launched its own Bitcoin mining operation.

10mm's picture

Another is Glance Technology.  Just saying.

FreeShitter's picture

Yep, I have actually bought some of that one at .92 sold at 1.20, going o get back in on the next pullback.

10mm's picture

Might wanna hold some. Just saying. Buy out. 

adr's picture

Well I really don't have a business idea, BLOCKCHAIN!!!, and no real hope of profitability, BITCOIN!!!, but implementation with cryptos, ETHER!!!, and other mining operation linkages will perhaps lead to significant profits without any real revenue, BITCOIN CASH!!! 

So my business is automatically worh $10 billion because BITCOIN!!! 

Pretty much the entire crypto space. Insanity begets insanity which births more insanity. 

Dragon HAwk's picture

Well for Humor look at it this way, When Stocks or BitCoin crash, their money will disappear and they won't have any of it to Buy Gold With.

BlueHorseShoeLovesDT's picture

Berlusconi is making a comeback... he won’t have lardass to push around.

JoseyWalesTheOutlaw's picture

and his women will be hot.....he like The Don...will just grab them by the pussy.....winning

cheech_wizard's picture

There are no markets, only Zuul...


wattie's picture

Join the Global Class action fightback against gold/silver manipulation!

Investors from 18 countries around the world have signed up so far...will you?

Together we can end this.

MaxThrust's picture

Die Gold, Die.

I want gold at $1100/oz and then I can buy some more and moar and maybe a little moor.

Davidduke2000's picture

it is not going to happen as dealers are charging $26 usd per oz  premiums on physical gold.

Aerows's picture

NVidia has done some pretty shitty things lately, and even people that swear by their hardware are getting pissed at them.  I'm not even in the slightest surprised that their stock is experiencing a minor drop because of it.

They need to get their shit together and release some new products for the holidays instead of recycled year old tech.  AMD has done it and was rightfully criticized for it, now it is NVidia's turn to get off of their asses and innovate.  Don't talk to me about self-driving cars and machine learning.  Tensor cores are already nearly obsolete, and NVidia just included what they could poach.  

They need to start innovating again and quit resting on their laurels.  Unless, of course, it is a foreshadowing that Volta isn't all it is cracked up to be and they are leveraging the "Ampere" product name for the consumer segment because they realize that ... a few things will get them sued.

Just a suggestion.

Davidduke2000's picture

I have never seen this bullshit before, stocks soar when there is a crisis. the fraud continue.

TeraByte's picture

Polls published in Die Weld yesterday predict Merkel is finished, if cannot form a coalition regime and she didn´t. Two out of three German share the opinion. No other party wanted to join in Merkel´s coalition, because they obviously smell blood from backfiring migration and energy politics run by such a greenish coalition. Loses Merkel again and become toppled it will can crush the entire EU integration dream by a single blow.

star_guide's picture

Crisis for Angela Merkel  #astrology