Play It Again, Mario

It’s the bulls’ favorite broken record, more easing from the ECB:

“The (European) Treaty requires that our actions are both necessary and proportionate to fulfil our mandate and achieve our objective, which implies that the limits we establish on our tools are specific to the contingencies we face. If the crisis has shown anything, it is that we will use all the flexibility within our mandate to fulfill our mandate — and we will do so again to answer any challenges to price stability in the future…”

The euro’s response was minimal.But, Trump’s response was plenty loud.

You’d think that since S&P futures ramped nearly 20 points, he’d be pleased. Perhaps no one has explained how algos work.

More important than ES ramp job, the 10Y dropped through its former lows from Sep 2017, opening the door to our 17.45 target.We’ve seen many instances in the past where a Draghi-inspired ramp job fell apart shortly after the markets opened.  A strong move in the bond market, however, should not be ignored. Stay tuned.

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