What an action-packed morning! The big event just took place, which is that Mario Draghi, in his fiscal swan song, pulled out every bazooka available for the European Central Bank. The Euro, already in a bear market going back for years, is falling yet again.
Liquidity moves markets!Follow the money. Find the profits!
This has precious metals fans cheering, however, for obvious reasons.
The endless accommodation in Euroland is sinking our own interest rates here, and bonds have found some strength (thus, the two safe havens – – precious metals and bonds – -are both climbing after getting body-slammed in recent days).
What’s especially interesting is how soon the huge news from the Trade Wars become irrelevant. Yesterday evening, both China and the U.S. were swapping olive branches so swiftly, you could have made a fort out of it. (I referred to it as backpedaling by our own leadership). The ES loved it – – for about three seconds. Within hours, the entire pop was just about gone. Draghi’s bazooka is helping shore things up a bit, but the pre-meeting concessions in the Trade Wars have already faded from memory.
Lastly, crude oil’s plunge continues. I did a piece here yesterday about commodity cycles (indicating oil was going to continue to weaken) and did a featured list on energy securities for shorting on tastytrade yesterday. It’s nice to see this working out.
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