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Mario Draghi Opens Monetary Spigot and Markets Soar

This is a syndicated repost courtesy of Slope of Hope. To view original, click here. Reposted with permission.

Back in 2010 and 2011, the market was all about the Euro. It was all anybody talked about. We hung on to every pip. Since then, it had sort of faded from the scene, and I stopped bothering looking at EUR/USD altogether.

Liquidity moves markets!

Follow the money. Find the profits! 

That all changed this morning, now that Mario Draghi has once again thrown open the Stimulation Spigot, since it’s quite apparent that the debt-addicted world is incapable of absolutely any organic growth, so they’re just going to just keep…………stimulating. You can see how the currency war has been affected our own U.S. dollar, portrayed here versus the Japanese Yen.

Since fiat currencies are continuing their race to the bottom, it is giving true hope to the world of precious metals. The effect of Mario’s capitulation is plainly evident this morning with gold.

The most electrifying chart to me is bonds, which continue to be an absolute monster. Just look at the consistency of their uptrend. Rates continue to collapse around the world, and I just read that the German Bund has reached a new historic low of negative three-tenths of a percent.

Of course, there’s nothing equity bulls like more than some of that sweet, sweet stimulation, so our own equity quotes are in the green. As of this moment, the ES is up about two-thirds of a percent and the NQ is up more than a full percentage point. The barrier between present price levels and lifetime highs is that skinny teal zone I’ve tinted.

As if it was’t enough to have two monster events – – tomorrow’s Fed party and next week’s G20 – – now we have THIS insanity!

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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