• Knave Dave
    05/23/2016 - 18:16
    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...

Central Planning Sends Gold To Seven Month High As EURUSD Hits 1.28 On Massive Short Squeeze

Tyler Durden's picture


Total meltup panic and confusion in all but the US equity market where the INTC punch has sent stocks reeling, as an epic, Volkswagen-like short covering squeeze has taken the EURUSD up well over 100 pips in the past few hours (with technicals now running rampant as predicted three months ago), and where gold has now soared by nearly $40 on the day, sending it to just shy of $1740 and at the highest level since February. And all of this is happening without the Fed having announced QE, which it very well may not as it would then be seen as a largely political organization, or the ECB having bought a single bond under its restarted conditional monetization program, which paradoxically still needs Spain to crumble and demand a bailout before any of its bonds are eligible for purchases. In short: total centrally planned confusion, whose ultimate achievement will be to scare the last remaining non vacuum-tube based traders out of the market. 

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Fri, 09/07/2012 - 10:55 | 2771690 malikai
malikai's picture

New charts: https://www.quantsig.net/live.html

Gold, as usual.

EDIT: Looking at our other models it seems quite clear that as of now Gold is taking the lead and pulling everyone else up, with equities lagging.

Fri, 09/07/2012 - 10:56 | 2771711 BaBaBouy
BaBaBouy's picture

Like It Or Like It Even More...

GOLD $50K ...

Fri, 09/07/2012 - 10:59 | 2771729 Pladizow
Pladizow's picture

CME Margin hikes in 3...2...1.....

Fri, 09/07/2012 - 11:02 | 2771738 malikai
malikai's picture

Yea, seriously. Just waiting for the inevitable.

Well, either margin hikes or another MFG/PFG. What other Futures shops are named *FG? Might be time to start watching out.

Fri, 09/07/2012 - 11:17 | 2771791 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I'll say it before and I'll say it again - if the CME keeps washing margins investers will turn to owning bullion instead of contracts.

So, in the long run, margin hikes are extrememly bullish.

Fri, 09/07/2012 - 11:32 | 2771845 El Oregonian
El Oregonian's picture

"What other Futures shops are named *FG?"

BFG = BUY F'ING GOLD!!! There.

Fri, 09/07/2012 - 11:03 | 2771752 scatterbrains
scatterbrains's picture

As JPM accepts more and more gold as collateral, when do margin hikes in gold start to harm stawks ?

Fri, 09/07/2012 - 11:05 | 2771760 ParkAveFlasher
ParkAveFlasher's picture

I wonder if the new Asian exchanges are coordinating margin hikes, or will they force CME to compete?

Fri, 09/07/2012 - 11:15 | 2771780 GetZeeGold
GetZeeGold's picture



How dare you question the CME's authoritah!!!




Fri, 09/07/2012 - 11:31 | 2771824 ParkAveFlasher
ParkAveFlasher's picture

I just figured out what I can do when I move to Ecuador, the unapologetic original banana republic, after the shtf here in NYC.  I'll open a commodities exchange. 

Fri, 09/07/2012 - 11:52 | 2771935 scatterbrains
scatterbrains's picture

Not a lot of overhead needed.. just an old pick up truck, a few armed thugs and just stack your bread loafs up on crates and your good to go  zimbabwe style

Fri, 09/07/2012 - 12:00 | 2771967 ParkAveFlasher
ParkAveFlasher's picture

You do the Ecuadorians no justice!  They might not have an iPad in every pot, but "no one starves in Ecuador". 

And when it becomes fashionable to dump the dollar, which will happen very suddenley in the depth of the night, they'll do just that.

I'm thinking a futures exchange, because obviously, if Asia can compete with the CME as a futures exchange, why can't South America?

Fri, 09/07/2012 - 13:29 | 2772334 Bicycle Repairman
Bicycle Repairman's picture

Don't forget the thugs.

Fri, 09/07/2012 - 15:24 | 2772815 ParkAveFlasher
ParkAveFlasher's picture

+1 Oh yeah, I'll totally bring thugs.  But them, I'll hire them in Peru.

Fri, 09/07/2012 - 12:43 | 2772137 midtowng
midtowng's picture

Probably true, but they already hiked the margin so many times (and only reduced it once) that it loses effectiveness.

Fri, 09/07/2012 - 14:50 | 2772664 lasvegaspersona
lasvegaspersona's picture

margins...what do they have to do with buying METAL....Tulving does not charge no stinkin margins!!!

seriously ....margins are for those who want to bet on the price of gold, ie those who need 'gold' to 'balance' their 'portfolio'. Those who wish to have it as a trustworthy wealth asset, who buy the real deal, do not care about margins...in fact a good margin hike just brings the price down.

Fri, 09/07/2012 - 11:53 | 2771936 vast-dom
vast-dom's picture

and please do NOT forget SILVER and look at the OIL chart for today -- pure market insanity!

in other words PM's that should be much higher are now rising and SP500 is more than double it's actual value....this is not sustainable.

Fri, 09/07/2012 - 14:54 | 2772688 lasvegaspersona
lasvegaspersona's picture

vast-dom...consider this...central banks have gold......no silver....just gold....

gold needs to be repriced to work as an asset

silver will rise but only t the extent its industrial use demands....

better get this one right or you will loose out BIG TIME. I was into silver until 5/2011. I have sold it all. 

Gold is a monetary metal NOT silver, wish all you want but if you want to play the game the central banks are about to play you should have gold.

don't hate me (actually I don't care but for your financial good) get gold.

Fri, 09/07/2012 - 15:23 | 2772816 bonderøven-farm ass
bonderøven-farm ass's picture

Silver is NOT a monetary metal?!?! As defined by whom, the banks (as you suggest)?  It's money to me as I'll gladly accept silver over fiat for my produce anytime.  It's up to me to determine the value of my labor, not some fucking worthless banking cartel...

Sat, 09/08/2012 - 02:58 | 2774052 terryfuckwit
terryfuckwit's picture

FOFOA donkey ass comment...The fofoa big long wordy(i love the sound of my stupid theory) paper has not explained why investment in ASE's silver exceeds gold by a ratio of 75 to 1.. Boy oh boy those industries like their ASE's.

Silver's history as money is stronger than gold's. Donkey FOFOA... what the establishment have done to both gold and silver sidelined by fiat is what fofoa are trying to have silver sidelined by gold.

Total bollocks... silvers pure investment demand utterly destroys this theory

Fri, 09/07/2012 - 15:22 | 2772806 Silver Bug
Silver Bug's picture

Up Up and away! QE to infinity here we come.



Fri, 09/07/2012 - 10:52 | 2771691 Temporalist
Temporalist's picture

Gold in "euro terms" at all time highs.

Fri, 09/07/2012 - 10:53 | 2771700 Canadian Dirtlump
Canadian Dirtlump's picture

I'm fondling some ASEs I bought this week at my desk with a bruno (half boner) as we speak. I finally bought some after stacking almost exclusively maples..


Mount up silver tards.

Fri, 09/07/2012 - 11:02 | 2771745 caimen garou
caimen garou's picture

he,he,he,he, fondling ase's and looking at the chinese girl dating advertisement

Fri, 09/07/2012 - 12:33 | 2772096 D-Man
D-Man's picture

Yup, just bought 20 ASEs this AM right  before the $1 pop, gotta love getting lucky in the short term in addition to what's to come in the long term.

Fri, 09/07/2012 - 10:55 | 2771705 ParkAveFlasher
ParkAveFlasher's picture

Greece flaking off the Euro like an ice shelf off Antarctica?

Fri, 09/07/2012 - 22:33 | 2773822 StychoKiller
StychoKiller's picture

When Greece starts cutting police pay, the end can't be far behind...

Fri, 09/07/2012 - 10:55 | 2771706 101 years and c...
101 years and counting's picture

kill the shorts before the crash. 

Fri, 09/07/2012 - 11:31 | 2771840 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Finance is based on economics.  Economics is based on lies.

Anything bid or asked in finance is based on the faith and credit of the underlying system.  The underlying system is based on lies.

The paradigm is false.  There is no sound logic behind the theories that are used in the pseudo-science of economics.

Fri, 09/07/2012 - 10:55 | 2771708 fuu
fuu's picture

Kitco getting monkey hammered.

Fri, 09/07/2012 - 11:23 | 2771802 Mr Lennon Hendrix
Fri, 09/07/2012 - 11:32 | 2771848 fuu
fuu's picture

Nope. I meant their website is totally grinding today.

Fri, 09/07/2012 - 11:44 | 2771908 Bay of Pigs
Bay of Pigs's picture

Yeah where is kito?

Funny how the deeflayshun/doelarr bulls vanish on days like this. LOL.

Fri, 09/07/2012 - 11:56 | 2771955 XitSam
XitSam's picture

I miss Trav

Fri, 09/07/2012 - 12:19 | 2772043 Tsunami Wave
Tsunami Wave's picture

Don't forget the other, other, other white metals, Platinum and Palladium! Big gains over the past 20 days!

Fri, 09/07/2012 - 12:38 | 2772114 tocointhephrase
tocointhephrase's picture

The problem is....most people forgot about Gold and Silver and are still sleeping. When Silver hits the all time high they are going to snap back like oil hitting the fat fryer!

Fri, 09/07/2012 - 11:59 | 2771964 tocointhephrase
tocointhephrase's picture

I had to refresh the chart 10 times before it would load. Winning!

Fri, 09/07/2012 - 10:56 | 2771710 lsbumblebee
lsbumblebee's picture

So much for "sterilization". Unless Draghi would like to volunteer.

Fri, 09/07/2012 - 10:56 | 2771715 Conman
Conman's picture

Who are these mystical shorts everyone keeps talking about? Ah you mean the hedged shorts that are making money anyway!? Insane. Rich get richer.

Fri, 09/07/2012 - 10:57 | 2771716 walidsassia
walidsassia's picture

u have to be an idiot and trade this market and u surely win, being rational  u will definitly loose. 


Fri, 09/07/2012 - 10:58 | 2771721 indianajohns04
indianajohns04's picture

So much for that Amazon short!

Fri, 09/07/2012 - 11:03 | 2771750 gjp
gjp's picture

One of a few poster children for the venality, waste, and manipulation that the market is today.  Incredible.

Fri, 09/07/2012 - 11:12 | 2771773 indianajohns04
indianajohns04's picture

No stop losses for me on this one....I'm gonna wait as long as it takes.

Fri, 09/07/2012 - 10:57 | 2771722 Vincent Vega
Vincent Vega's picture

DXY flirting with 79 handle.

Fri, 09/07/2012 - 10:58 | 2771724 LawsofPhysics
LawsofPhysics's picture

...and for that we thank you.  Go ahead, print.  Stupid sheep.

Fri, 09/07/2012 - 10:59 | 2771726 s n p
s n p's picture

but what does crude oil know that its not telling?

Fri, 09/07/2012 - 10:59 | 2771727 caimen garou
caimen garou's picture

watch out for the margin hiker in chief,does'nt matter,Hard assets bitches!

Fri, 09/07/2012 - 10:59 | 2771728 blueridgeviews
blueridgeviews's picture

Ahhhh volatility. Thats what voters like. sarcasm.

Fri, 09/07/2012 - 11:00 | 2771731 El
El's picture

What a nice thing to wake up to this morning.

Fri, 09/07/2012 - 11:00 | 2771732 blueridgeviews
blueridgeviews's picture

Europe is going off the fiscal cliff and their currency is valued higher than the US dollar? How does that work?

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