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

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...


gladih8r TBT or not TBT Mon, 11/20/2017 - 16:24 Permalink

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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.

In reply to by TBT or not TBT

Conax Mon, 11/20/2017 - 16:09 Permalink

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.

D.r. Funk Mon, 11/20/2017 - 16:10 Permalink

Nice debt:gdp 105.85Not significant but bumped up from 103 range in recent monthsUS 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==RELENTLESS SPATE OF ' CONSECUTIVE ' ATH-CLOSES -- on -- hold ---- HA mofos

SovietPepe Mon, 11/20/2017 - 16:11 Permalink

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!

cpnscarlet Mon, 11/20/2017 - 16:14 Permalink

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 Mon, 11/20/2017 - 16:19 Permalink

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 Blockchain has also launched its own Bitcoin mining operation.

adr Mon, 11/20/2017 - 16:29 Permalink

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. 

Aerows Mon, 11/20/2017 - 18:00 Permalink

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.

TeraByte Mon, 11/20/2017 - 21:51 Permalink

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.