S&P Futures At Tipping Point On German Finmin Grexit Chatter

Tyler Durden's picture


The market was just starting to digest the schizophrenic Durable Goods data when chatter broke of the German FINMIN discussing a 'temporary' GRExit. In other words, just like Mario Draghi could transmogrify the twilight zone into reality during Merkel's vacation, and spread unfounded rumors that Europe is fine, now that the Chancellor has returned, the rumors take on the other side of the equation, and the mice no longer can play. This pushed S&P futures below overnight lows (down about 5pts from Dur Goods), EUR down 40 more pips (-75pips from close), and 10Y Treasury yields dropped 3bps (down 6bps from their overnight open). As we stand S&P 500 futures appear poised at an important trend-line tipping point in this move as Draghi's dreams are delayed to mid September and the world stops believing - as there is market talk also that Netherlands, Finland, Slovakia and Estonia are said to back the German plan.

S&P 500 e-mini futures at trendline decision time (red arrow)...


EUR disappointed...


Elsewhere, this is the caption we have all been waiting for:

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Fri, 08/24/2012 - 09:00 | 2733318 tawse57
tawse57's picture

Does this mean that the DOW might actually go down 0.1% at some point or will we have DOW 14,000 by close of business tonight?

Fri, 08/24/2012 - 09:07 | 2733343 BaBaBouy
BaBaBouy's picture

Just Fecking "DO IT" Already ...


All is Not Lost, They still make great Souflakis!

Fri, 08/24/2012 - 09:26 | 2733427 Nothing To See Here
Nothing To See Here's picture

Obama can fix this, if he is given the necessary powers that is...

Fri, 08/24/2012 - 10:37 | 2733784 Nothing To See Here
Nothing To See Here's picture


I figured my sarcasm would be obvious, but it obviously wasnt...

-1 for FAIL

Fri, 08/24/2012 - 09:13 | 2733374 Comay Mierda
Comay Mierda's picture

the major indices will only crash if priced in gold

DJIA/Gold ratio will probably reach 1.00 at the height of the coming dollar collapse, then i will sell my gold for stocks

Fri, 08/24/2012 - 10:39 | 2733717 Lets_Eat_Ben
Lets_Eat_Ben's picture

I think you are missing the point of "The Most Important Chart in the World". Stocks have been de-valuing in real terms for about a decade; that's what that graphic represents.

Out of Au and into the (more easily manipulated) stock market? That is a well thought out plan with little to no chance of backfiring. Also, you are very intelligent.


Fri, 08/24/2012 - 11:26 | 2733971 Comay Mierda
Comay Mierda's picture

why dont you take a look at the dow/gold ratio in the late 70's early 80's genius

at some point, not soon though, gold will become a bubble.  i will exchange it for stocks, let them run, then buy gold after it comes down again

only idiots buy and hold any asset forever

Fri, 08/24/2012 - 09:01 | 2733320 Jlmadyson
Jlmadyson's picture

They have truly run out of jawboning, options and time.

More importantly Merkel and friends are clearly marking the line.

Enough is enough as it were.

Fri, 08/24/2012 - 09:09 | 2733360 Stock Tips Inve...
Stock Tips Investment's picture

Whatever the route taken by the European authorities, these will have a negative effect on the market. What happens, is that a way can be a good solution to long term. However, there are other ways that can lead to disaster. But all these roads will be filled with stones.

Fri, 08/24/2012 - 10:54 | 2733844 LMAOLORI
LMAOLORI's picture



We'll see how political this gets...


Barack Obama asks eurozone to keep Greece in until after election day

US officials are worried that if Greece exits the eurozone, it will damage President's election hopes






German Finance Minister Rejects Greece


"German Finance Minister says no to giving Greece more time

German Finance Minister Wolfgang Schaeuble told a public radio Thursday that granting more time to Greece to implement reform is “not a solution” to its problems.

“More time is not a solution to the problems,” Schaeuble told SWR radio Thursday. He argued that granting more time to Greece for its reform implementation would mean more cost for creditors.

“The question is how we win back trust of the market,” he said, urging Greece to keep the time line as agreed originally."

Fri, 08/24/2012 - 09:01 | 2733322 SheepDog-One
SheepDog-One's picture

Nice bank run in Vietnam too, theyre grabbing the Dong BANK RUN IN VIETNAM (Who is connectingdots3) - YouTube

Fri, 08/24/2012 - 10:25 | 2733725 Lets_Eat_Ben
Lets_Eat_Ben's picture

Everybody take posession of your Dongs, quick, and hold on with both hands!

Fri, 08/24/2012 - 10:29 | 2733754 Lets_Eat_Ben
Lets_Eat_Ben's picture

A great deal of pressure is being felt on the Dong. If the Dong masters can supply adequate liquidity then the pressure will be relieved, but it will surely build again and again.

Fri, 08/24/2012 - 09:01 | 2733323 malikai
malikai's picture

It looks like EURUSD is pulling it down.


Fri, 08/24/2012 - 09:02 | 2733325 Neoisolationist
Neoisolationist's picture

I just have to say this: Bullish!

Fri, 08/24/2012 - 09:02 | 2733327 Boilermaker
Boilermaker's picture

Don't worry, it'll go back up just in time for a positive open, then have a mystery ram-rod moment higher, then drift sideways into the close for another feel-good Friday moment.

Fri, 08/24/2012 - 09:02 | 2733328 JeremyWS
JeremyWS's picture

What charting software is the E-mini SP futures being shown on in the first chart? Doesn't look like bloomberg, but looks pretty good, thanks.

Fri, 08/24/2012 - 09:02 | 2733329 Dr. Engali
Dr. Engali's picture

Yeah we'll go to 1375 and then Hilsenbarf will throw out a QE bone.

Fri, 08/24/2012 - 09:11 | 2733370 GolfHatesMe
GolfHatesMe's picture

at 3:30 set your watches

Fri, 08/24/2012 - 09:04 | 2733339 SheepDog-One
SheepDog-One's picture

Theyre going to try gliding a 747 on fumes for 3 months....good luck Beardface we're all counting on you.

Fri, 08/24/2012 - 09:17 | 2733400 francis_sawyer
francis_sawyer's picture

I have to concentrate... I have to CONCENTRATE... Hello [Hello] Echo [Echo]... Now pinch hitting for Pedro Borbon ~ Manny Mota...

Fri, 08/24/2012 - 09:22 | 2733419 The Wizard of Oz
The Wizard of Oz's picture

good luck Beardface we're all counting on you.

Fri, 08/24/2012 - 09:26 | 2733430 francis_sawyer
francis_sawyer's picture

Win one for the 'Zipper'

Fri, 08/24/2012 - 09:32 | 2733443 piliage
piliage's picture

Looks like I picked the wrong day to stop leveraging short.

Fri, 08/24/2012 - 09:07 | 2733349 whydtinogo
whydtinogo's picture

Caption: Thats right, you walk just behind me, like the Queen.


Fri, 08/24/2012 - 09:08 | 2733351 tawse57
tawse57's picture

Is Merkel saying "This is how you get a good grip?"

No wonder the guy behind her has a big smile on his face.

Fri, 08/24/2012 - 09:27 | 2733434 piliage
piliage's picture

"Gosh Angela, you do look lovely in a pants suit. Did you lose weight on vacation?"

Fri, 08/24/2012 - 11:40 | 2734036 Nobody For President
Nobody For President's picture

"Aren't you glad none of those rifles are loaded?"

Fri, 08/24/2012 - 09:09 | 2733358 Boilermaker
Boilermaker's picture

Storming higher and back to parity right now.

<hands up in the air> WHEEEEEE

Fri, 08/24/2012 - 09:12 | 2733371 Winston Churchill
Winston Churchill's picture

Something wierd happening in the European banks this morning.

My transfers are not being executed.

Anyone else having problems ?

Fri, 08/24/2012 - 09:14 | 2733381 Jlmadyson
Jlmadyson's picture

Would not be surprised in this environment. Bank holidays soon.

Fri, 08/24/2012 - 09:16 | 2733391 disabledvet
disabledvet's picture

i think i have your transfers right here actually...

Fri, 08/24/2012 - 10:03 | 2733597 Winston Churchill
Winston Churchill's picture

Finally they went thru.Six hours vs normal two.

Fri, 08/24/2012 - 09:13 | 2733376 Negro Primero
Negro Primero's picture

ATHENS/BERLIN (MNI) – "The German Finance Ministry is seriously
considering a plan in which Greece would be obliged to ask for a
temporary exit from the Eurozone until it sorts out its public finances,
senior Eurozone officials told MNI."

Fri, 08/24/2012 - 09:13 | 2733379 buzzsaw99
buzzsaw99's picture

caption time: Yes mommy!

Fri, 08/24/2012 - 09:58 | 2733571 Pool Shark
Pool Shark's picture



AP: Merkel and Draghi cheerfully face firing squad for crimes against humanity



Fri, 08/24/2012 - 09:14 | 2733380 Joe A
Joe A's picture

These soldiers had been ordered to shoot the Greek PM if he would give Merkel a Fakelaki in return for a Rousfeti.

Fri, 08/24/2012 - 09:25 | 2733392 Abraxas
Abraxas's picture

“Netherlands, Finland, Slovakia and Estonia are said to back the German plan"

What Hitler could not achieve with all the military might and devotion of his people, the technocrats did without a bullet, legally and with consent of other countries – enlarge German living space and establish colonies all over Europe. In return the Germans promise slavery for the 1000 year Reich. Nothing changed.

Fri, 08/24/2012 - 09:35 | 2733463 Nachdenken
Nachdenken's picture

You should read current events rather than history. That old and worn cliche is inept.

Germany has a strong savings base, a cautious credit shy consumer segment, and unbeatable exports.  It is now the anchor and pivot for the European Union.

Current German economic strength is its fiscal discipline., and has, this half year a budget surplus.

Fri, 08/24/2012 - 09:40 | 2733480 sunshineguerilla
sunshineguerilla's picture

Maybe you should try keeping the should's to a minimum. Nobody here is your wife.

Fri, 08/24/2012 - 09:58 | 2733574 Bullionaire
Bullionaire's picture

As the Tylers have repeatedly pointed out, the German "economic miracle" is mostly channel-stuffing.



Fri, 08/24/2012 - 09:17 | 2733394 BrigstockBoy
BrigstockBoy's picture


Fri, 08/24/2012 - 09:17 | 2733395 lizzy36
lizzy36's picture

Dow 36,000 here we come.

Fri, 08/24/2012 - 09:18 | 2733404 Boilermaker
Boilermaker's picture

AND ES goes green in 5, 4, 3, 2, 1....

Fri, 08/24/2012 - 09:19 | 2733406 Dr. Engali
Dr. Engali's picture

Merkel : you know you really are a worthless piece of shit. If you try another move like that while I'm on vacation these soldiers will have their guns pointed at you.

Fri, 08/24/2012 - 09:20 | 2733409 The Reich
The Reich's picture

'temporary' GRExit as temporary  as the European Financial Stabilisation Mechanism (EFSM)?



Fri, 08/24/2012 - 09:22 | 2733418 Meesohaawnee
Meesohaawnee's picture

yea cause after all 96 crude is gonna help get the euro zone out of the depression. They institute austarity.. and so do we. Just take it!

Fri, 08/24/2012 - 09:27 | 2733435 jover
jover's picture

The grexit will be transitory for sure

Fri, 08/24/2012 - 09:35 | 2733461 sunshineguerilla
sunshineguerilla's picture

Merkel : 'I think a li **** came out in that fart!'

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