One of the rules of sales is to shut up after they guy says yes to whatever you’re selling. Close the book, say thanks and leave. Don’t buy back whatever you just sold him by talking to much. At least that’s what they told me at Lehman Brothers back in the day.
That’s what Draghi did today, he got everyone all lathered up, then he bought back the sizzle and crushed their dreams. French and German markets were about about 2% as he spoke, but started to decline after he went from uber dove to semi hawkish on future rate cuts. Germany and France ended the day down almost 2%. That’s a 4% swing from top to bottom.
Our market sold off too, but we managed a rally to close flattish.
Oil continues to hang around 38.50 even though the dollar got hammered. The 10 year note sold off and yield went up to 1.93% which was the highest close in ab out a month.
I added some new positions today: FAZ , TZA and EPV.
The market continues to hang in there and energy (XLE) stays constructive for now.
See you in the morning.
Joe