While Grease may be the word, “Print” is the means by which to ‘Grease’ the markets. Between a surprise rate cut by China (AMEX:FXI), a $78 billion expansion of the Bank of England’s
QE asset re-purchase program and a 25 point basis point cut in the benchmark lending rate by the E.C.B. today the markets got nearly everything they wanted to grease the equities skies before setting off down the mountain. For good measure the U.S. chimed in with a ADP non-farm payroll report and better than horrible initial unemployment statistics but still that was not enough to lift up the equity markets. I daresay that the entire slew of data that was supposed to be so bullish for the markets had been front-run to the end of creation earlier in the week.
The only thing that moved significantly on the news was the Euro(AMEX:FXE) which sunk like the Titanic towards the dangerous $1.22 level versus the dollar, settling for the late afternoon at $1.239, as well as nearly everything else. Oh for good measure, Gold (AMEX:PHYS) didn’t like all of this mucking aobut with money printing and sold off below $1600 briefly before settling down in the $1605 region for the rest of the day. The real test, of course, comes tomorrow when the big boys have to decide if they want to be long over the weekend. But, since the markets are trading with half the people not around due to the U.S. celebrating their fascistic takeover of the world and not their much more ideologically reasonable revolution, I suppose it’s hard to read anything into such low volume activity.
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