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…
Seriously…
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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…
