The ECB’s Kitchen Sink Approach

Having been chastised in the past for not doing enough, today the ECB threw a little of everything at the problem of falling stock prices inflation that’s too low.  The Special High Intensity TLTRO (S.H.I.T.) in particular is nothing but a giveaway to banks who are, of course, the power behind the throne and the primary beneficiaries of the measures.

The result was a EURUSD that tested its former lows, only to bounce back to higher highs.  Will there ever come an ECB announcement that isn’t front-run by every trader on the planet?2016-03-10 URUSD 15 0615The question is often asked: “are central banks out of ammunition?”  Wrong question.  The correct question — the only one that matters — is whether they remain willing to manipulate the real drivers of the “market”: currently USDJPY and CL.

Futures initially spiked, but have fallen back to barely green on the day, clinging for life to the SMA100.  Part of the problem was that the spike took ES up to the .618 (2007.37) of the fall from the May 2015 highs to last month’s lows.  Poor planning on the algo-masters’ part.  But, the day is young.2016-03-10 ES 5 0630continued for members


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