A Great Opportunity to Lighten Up
A couple weeks back, when the big cannon blast was delivered by European Central Bank president Mario Draghi -- well, sort of -- the market's expectations were taken up a notch. That clearly occurred on speculation without stated fact. How do we know? The massive run-up over that two-day period was on some whacked-out notion that the "Superman" from the ECB would make it all happen the following week, when policy would be announced. Once again, it went the wrong way. But wasn't the market supposed to go lower?
I postulated on the ECB day that, even if Draghi had done nothing but reiterate his stance and support for the euro, that it would have been received as "OK." The Europeans are gradualists, preferring to take a "wait-and-see" approach, for better or worse. After all, in that one press conference, did Draghi state his intentions for the ECB meeting? Of course not, but many showed disappointment at getting nothing from the meeting. Wasn't the market supposed to go lower?...296 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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