Friday... the 27th..... Hopium or False Promise...
GDP Consumer Spending
at 8:55 Central Time
UMich 1 yr / 5 yr / Condition, Expectations / Confidence
at 11:00 another KICK the Can out of Euro....
at 13:00 another Fed promise of Kick the Can... Or Question and Expect #3
at 2:15 major sell and profit taking because nobody wants to see if the promises are kept next week followed by another up day Monday on Hopium....
Look for AAPL to loose major support and close below 540 the 27th of July...
The prediction on AAPL is VERY bold I will have to say. I'm not sure if I'd go that far but I wouldn't be surprised if it falls to the $562-565 level by close tomorrow.
But I've been wrong before... Me Trading Apple
Lock the door on the way out....
you can put down the blanket,
you can get off the high stool and
take off the conical hat.
The first thing that a medico would say is,
when in pain,
one should stop doing what they have been doing,
that put them in the position of having pain.
She's on vacation.
The Otter Way said: It's not over until the fat lady sings.... but I saw her warming up and adjusting the scales....
At least this is an epic setup for next week's payroll which is sure to disappoint and watch the market likely to have it's worst week of the year.
To be fair to this Draghi fellow, sponsors of welfare states always say everything is fine while the aforementioned collapses around them. It's happening in the United States, albeit on a smaller scale. I've read nothing of substance that says the Euro welfare states are going to take the cod liver oil of welfare state dismantling, so everything is not fine. I'm not one to accept "trust us" promises from politicians and/or bureaucrats, no reason to start with this latest one.
Bayou Steve said: I frankly don't understand how Draghi can say everything is fine. I read a couple days ago the Greece is doomed because they won't do what they have to do. That it is impossible. Spain and Italy have caught a couple breaks lately but they will need a lot more cash as well. Could it be that they want to postpone the inevitable until after the elections in this country? We still have a way to go.
So all that's left for anyone to do is profit from the actions of fellows like this Draghi bureaucrat. Long, short, all of it. You do the world a favor when you relieve precious economic resources from the wallets of idiots and put them to more productive uses.
Stock prices soared around the world yesterday when European Central Bank President, Mr. Mario Draghi, said, "Within our mandate, the ECB is ready to do whatever it takes to preserve the Euro. And believe me, it will be enough." These were the words Europeans had longed to hear.
Up to now, Mr. Draghi had been reluctant to commit to undertaking a European version of Quantitative Easing (it was believed the ECB did not have the authority to do so). However, Mr. Draghi described a loophole in his speech which he believes gives him the power to buy sovereign bonds and push down interest rates.
Mr. Draghi explained that "the premia that are being charged on sovereign states borrowings," hamper interbank transactions, reduce liquidity and cause "financial fragmentation" within the Eurozone. He said that since "these premia do not have to do with factors inherent to my counterparty - they come within our mandate." Therefore, he can do whatever it takes to save the Euro. Really?
Mr. Draghi has enormous monetary power. But what can he do other than print money and influence interest rates? Japan has been printing money and fiddling with interest rates for 20 years. Their economy has been stagnant for 20 years. Helicopter Ben has been throwing money at our economy for five years. We've had a recession and the slowest economic recovery in 70 years.
Powerful as they are, Messers. Draghi, Yuji Lino and Bernanke can only address monetary problems. The politicians, who make and execute the laws of the land, need to fix the fiscal problems they created. They need to stop bribing voters with promises they cannot keep and begin creating competitive, vibrant, growth economies that provide opportunities for all.
The bottom line: Mr. Draghi can goose stock markets around the world, but he cannot do what the politicians must do...even if he is Super Mario.