Thursday, October 22, 2015

More ECB Printing?

Draghi came out again with guns blazing promising more QE and even lower rates.  This has given Europe a huge boost, and a smaller boost to the US market.  Remember that ECB's QE announcement earlier this year just made the euro weaker and caused US equity investors to worry about a stronger dollar.  So what is good for Europe is not necessarily good for the US in this case.

I have reduced my ES long into the pop premarket, but I will buy on any weakness later today or tomorrow.  Still a dip buyer's market but we are getting later into the rally phase and you will get more choppy trading behavior.

Keep an eye on the euro, a weakening euro is definitely not what the S&P wants.  Treasuries and Bunds look like they are invincible now, with all central banks dovish.  NIRP forever.

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