Posted in the Day Trading Forum
Since: Jul 11
#1 Dec 30, 2011
Todays early signs of life in the market were arguably due to the large drop in the Euro. And by early signs of life I mean the drop of US equities at the open. We dont care which way it moves, just as long as something is happening. Sadly, when the Euro slowed its trading pace, which usually occurs @ 1-1:30pm CT, the mini-S&P slowed as well. In fact, the S&P traded in about a 5-pt range from mid-morning into the close.
Some folks were perplexed:Why is the Euro falling? Wasnt the Italian auction excellent? Yes it was; however, it was only an auction for 6-month Bills. Heck, Ill bet even Greece, California, and Illinois can auction off 6-month Bills. Nevertheless, the yield demanded by investors was 50% lower than the Nov. 25th auction.
What probably worried the markets were the recent actions of European banks and Thursdays next Italian auction.
This mornings news from the European Central Bank shows us that (ECB) overnight deposits swelled to a record high of 455 billion. Why would banks park their money at the ECB and get 0.25% when it costs 1%? Isnt that a guaranteed loss? Doesnt this imply rather forcefully that the banksters know there is another shoe ready to drop? It sure seems like it, and thats why I believe the Euro fell apart today.
So what could be that other shoe to drop? Well, if there is one, it suggests that the bankers know they will not be buying the Italian junk pardon, debt and therefore the trading desks slammed the Euro and bought safety in the US dollar.
Perhaps they know something else entirely? Is a major downgrade of sovereign debt coming to a EuroZone country and that caused the move in the Euro/Dollar? Thursday could be interesting.
Founder & President - Trading Advantage
Add your comments below
|Making More Income of Investments 80% daily for... (Apr '16)||Feb 18||MegaHyipro||4|
|The United States has more than 13 million mill...||Jan 29||Patrice||2|
|mark oryhon professional strategies for trading||Jan '17||Anonymous||1|
|Ten years later, Buckhead massacre resounds (Aug '09)||Dec '16||OGG||13|
|99BTC - Invest 0.1 btc Received 10 btc after 12...||Dec '16||makebtc123||1|
|What is your favorite NinjaTrader indicator site? (Oct '09)||Nov '16||bob||39|
|Vanity Units For Bathrooms UK||Oct '16||Anonymous||1|
Find what you want!
Search Day Trading Forum Now
Copyright © 2017 Topix LLC