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"Sources" Confirm No ECB Rate Cut Tomorrow, Euro Soars Pushing Dow Jones To New Record High.

Tyler Durden's picture




 

Even though a meager 3 of 70 economists actually expected Mario Draghi to announce some sort of rate cut at tomorrow's ECB press conference, moments ago MarketNews reported that according to "sources" a rate change tomorrow is unlikely even amid a dip in Europe's inflation.

Bloomberg adds:

  • MarketNews report cites senior Eurosystem source as saying ECB will want to avoid over-reacting to fast-changing economic signals and avoid Fed Taper error.
  • Report cites senior Eurosystem source as saying ECB will want to avoid over-reacting to fast-changing economic signals.
  • ECB does not make “hasty moves or take decisions with  short-term value,” report cites source as saying; said Fed announced plan to start tapering QE “too early”

The flashing red headline, as this non-news was picked up by the algos, was enough to send the EUR, and naturally the all important EURJPY spiking by another 40 pips, and taking the correlated US equity markets, right along with it pushing the Dow Jones to a fresh record high.

And that concludes your "fundamental trading" lesson for the day.

 

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Wed, 11/06/2013 - 11:01 | 4126770 EscapeKey
EscapeKey's picture

Hey - that information was supposed to be leaked to insiders only.

Wed, 11/06/2013 - 11:16 | 4126841 Sudden Debt
Sudden Debt's picture

Who says the insiders didn't got informed about a rate cut anyway?

ANYWAY THE DRAGHI BLOWS!

Wed, 11/06/2013 - 11:23 | 4126881 Headbanger
Headbanger's picture

If this isn't a sure sign of obscenely high bullishness, then what is when all it takes is for something as benign as no ECB rate cut to cause such buying??

Unbelievable!  It just goes to show the desperation to buy, buy, buy now.

And soon to be replaced with desperation to sell, sell, sell when these buyers realize they're holding the bag!

Wed, 11/06/2013 - 11:29 | 4126903 buckethead
buckethead's picture

BTMFATH (Obligatory)

Wed, 11/06/2013 - 11:38 | 4126946 El Hosel
El Hosel's picture

POMF.... Plus One Mo Fro

Wed, 11/06/2013 - 11:39 | 4126948 LawsofPhysics
LawsofPhysics's picture

Yes.  I am amazed that the E.Z. hasn't gone to war of collateral requirements yet.

Wed, 11/06/2013 - 12:01 | 4127039 Ghordius
Ghordius's picture

mostly because we are engaged in a war of "repatriation of collateral", at the moment. yet to come back to the article: why is this so strange or unexpected? I wrote myself here not long ago that the ECB has no reason to change anything, at the moment

it's the FED and the BoE - among others - that abhor the "zero inflation" point of the chart - being so near to the dreaded deflation

the ECB has only one mandate: price stability. I repeat: + 0.7% CPI (including energy & food) or minus 0.7% CPI, it's irrelevantas long as price stability is kept

Wed, 11/06/2013 - 12:05 | 4127058 LawsofPhysics
LawsofPhysics's picture

Correct, and so long as the commodity suppliers can still deliver, it will hold.

Tick tock (for the entire western world).

Wed, 11/06/2013 - 12:14 | 4127095 Ghordius
Ghordius's picture

that's why having a slight trade surplus is so damn important

during their obscene RE bubble the Irish stopped exporting their delicious Angus beef. as soon as the crisis hit (remember the Anglo-Irish banker that took his number out of his ass?) they resumed exporting. what was "normal"? I'd say if you see a high quality product that has no export, you see a country that is "valuing itself too dearly"

methinks headbanger's comment is spot on "If this isn't a sure sign of obscenely high bullishness, then what is when all it takes is for something as benign as no ECB rate cut to cause such buying??"

Yet my understanding is that Tyler thinks differently, particularly on the "benign" part. we'll see

Wed, 11/06/2013 - 12:28 | 4127163 LawsofPhysics
LawsofPhysics's picture

So, a currency crisis it will be then. Probably better for TPTB as there will be no clear entity to blame when essential commodities can simply no longer be delivered.  Humanity, it would appear, never learns.  hedge accordingly.

Wed, 11/06/2013 - 11:03 | 4126786 fonzannoon
fonzannoon's picture

I'm getting ready to put on my first short position in a long time. I am just waiting for the 10% santa rally and the 10% start of the year rally. Then I will short the April 4% correction while I simultaneously buy the dip.

Wed, 11/06/2013 - 11:11 | 4126814 LawsofPhysics
LawsofPhysics's picture

Don't do it,  the "markets" are going to go sky high for a while as they are now starting to reflect the coming hyperinflation (regardless of the world governments bogus inflation numbers).

Wed, 11/06/2013 - 11:14 | 4126827 Zer0head
Zer0head's picture

Laszlo was right after all

 

Wed, 11/06/2013 - 11:17 | 4126839 LawsofPhysics
LawsofPhysics's picture

The world is recognizing that the world's bond markets are dead, period, and there is no true price discovery.  There are only central banks printing the world over.  Zimbabwe market will feed on itself now. 

hedge accordingly.

Wed, 11/06/2013 - 11:15 | 4126837 davinci7_gis
davinci7_gis's picture

Buy the highs, buy the upshoots!

Wed, 11/06/2013 - 11:15 | 4126834 Sudden Debt
Sudden Debt's picture

Hm, pretty smart thinking!!

I was planning a put also but I think you're right about that Santa moron rally!

It's been a long time for me also since I shorted anything.

 

Wed, 11/06/2013 - 11:35 | 4126930 greatbeard
greatbeard's picture

>> I will short the April 4% correction

Why make it so complicated?  Just short the fuck out of gold every time it raises it's head.

Wed, 11/06/2013 - 17:06 | 4128339 Haager
Haager's picture

And in the meantime of waiting? Aren't you buying the FATH?

Wed, 11/06/2013 - 11:04 | 4126787 Orly
Orly's picture

Selling the bounces on EJ...

:D

Wed, 11/06/2013 - 11:21 | 4126869 falak pema
falak pema's picture

I'm back to eating good ole butter ever since that study came out about natural fats being better than synthetic ones.

More fun and less bad stuff until they change their minds again.

Wed, 11/06/2013 - 11:30 | 4126904 Orly
Orly's picture

It's not the fat that makes you fat, falak.  It's the refined sugar that makes you fat.

Oils, olefins and all that slip right through the gut virtually unnoticed. Cholesterol is brain food and it only becomes a problem when your own body makes too much of the stuff.

Besides, escargot sauteed in I Can't Believe It's Not Butter?  Non, merci.

:0

Wed, 11/06/2013 - 11:39 | 4126950 greatbeard
greatbeard's picture

>> it only becomes a problem when your own body makes too much of the stuff.

Very true, but the fuel your body uses to make cholesterol is saturated fat.  I have genetically very high cholesterol.  The only way, non-pharma, that I can control i is a very low saturated fat diet with lot's of exercise.  Saturated fat diet = high cholesterol.

 

 

Wed, 11/06/2013 - 12:04 | 4127054 Tinky
Tinky's picture

Have you not tried Red Yeast Rice? Works very well, and you'll be fucking BIg Pharma at the same time. 

Wed, 11/06/2013 - 12:35 | 4127198 greatbeard
greatbeard's picture

>> Red Yeast Rice

Had not heard of it so I did a little checking.  It might be right for some but I don't think it's for me.  I've had severe reactions to statins and simply will not take any. It appears the red yeast rice extract is a statin, which leaves me leery.  Not because I'm skeptical of red yeast rice's effects, but because of my reactions to statins.

" In 2007, the FDA asked that three red yeast rice products -- Cholestrix by Sunburst Organics and two red yeast rice formulations by Swanson Healthcare Products (Red Yeast Rice and Red Yeast Rice/Policosonal Complex) -- be withdrawn from the market because they contained lovastatin."

But the same site does note surprisingly good results.

Due to my particular body chemistry I'll have to stick with my low saturated fat/high exercise diet and take my heart attack when it comes like a man.  Besides, I'm a boomer.  One less boomer is a good thing.  I just want to outlive my dog by a nano-second.

 

 

Wed, 11/06/2013 - 13:26 | 4127430 Tinky
Tinky's picture

As you might expect, Big Pharma lobbied strongly in an attempt to get RYR banned. They couldn't stand the fact that it is often as efficacious as their vastly more expensive, and less natural Statin products. Luckily they have been unsuccessful thus far.

Your approach is certainly the healthies in any case.

Wed, 11/06/2013 - 14:37 | 4127787 RabbitChow
RabbitChow's picture

Your body absorbs cholesterol from meats and animal fat that contains it.  Your body also can synthesize it from olive oil (which can contain large amounts of squalene).  Your body can also make it through synthesis from vinegar (acetic acid).

Wed, 11/06/2013 - 15:29 | 4127973 greatbeard
greatbeard's picture

>> Your body also can synthesize it from olive oil

"Can" I guess leaves a lot to the translation.  In general olive oil is considered very good for cholesterol.

From the Mayo Clinic:

Cholesterol: Top 5 foods to lower your numbers 4. Olive oil

Olive oil contains a potent mix of antioxidants that can lower your "bad" (LDL) cholesterol but leave your "good" (HDL) cholesterol untouched.

Try using about 2 tablespoons (23 grams) of olive oil a day in place of other fats in your diet to get its heart-healthy benefits. To add olive oil to your diet, you can saute vegetables in it, add it to a marinade or mix it with vinegar as a salad dressing. You can also use olive oil as a substitute for butter when basting meat or as a dip for bread. Olive oil is high in calories, so don't eat more than the recommended amount.

The cholesterol-lowering effects of olive oil are even greater if you choose extra-virgin olive oil, meaning the oil is less processed and contains more heart-healthy antioxidants. But keep in mind that "light" olive oils are usually more processed than extra-virgin or virgin olive oils and are lighter in color, not fat or calories.

Wed, 11/06/2013 - 11:59 | 4127033 falak pema
falak pema's picture

too true about escargots, Orly. If u eat oysters and brown crunchy  rye bread with real butter on it its just as good.

Good bye subs, no more marge with shell fish.

Wed, 11/06/2013 - 12:05 | 4127057 Ghordius
Ghordius's picture

keep to the French eating habits, falak. eat slowly, little portions of good, genuine food, candlelight, think about sex during the meal

Wed, 11/06/2013 - 12:36 | 4127205 greatbeard
greatbeard's picture

>> think about sex during the meal

The French cheat.  When you can smell your date's pussy while eating dinner it's easier to keep your mind on sex.

Wed, 11/06/2013 - 12:50 | 4127275 Ghordius
Ghordius's picture

it makes it also easier to keep staring in her eyes, which then again makes is easier...

Wed, 11/06/2013 - 12:55 | 4127299 falak pema
falak pema's picture

lol, ghordius you are spot on about oysters. 

Our food is mostly home made as my other half loves to cook. When we eat out its for fresh food in typical restaurants that make some dish "like grandmother did"; like Bouillabaise or fish soup or grilled fish fresh from port. I am not far from the coast. The local restaurants really make good fresh stuff mostly cooked in olive oil.

Fish, home grown chicken and red meat from time to time. Nothing like grilled red  tuna thick and browned like a steak.We use the "plancha" which cooks electric and very lean.

Prost! 

Wed, 11/06/2013 - 14:41 | 4127799 RabbitChow
RabbitChow's picture

Or better yet I eat salmon, ahi tuna, and mahi mahi thin-sliced and raw, with a little bit of soy and wasabi.  Maybe not traditional but whadda lunch.

Wed, 11/06/2013 - 14:41 | 4127800 RabbitChow
RabbitChow's picture

Or better yet I eat salmon, ahi tuna, and mahi mahi thin-sliced and raw, with a little bit of soy and wasabi.  Maybe not traditional but whadda lunch.

Wed, 11/06/2013 - 11:04 | 4126788 falak pema
falak pema's picture

beyond beyond even Ayn Rand was never that randy.

Wed, 11/06/2013 - 11:05 | 4126789 Dr. Engali
Dr. Engali's picture

Fundamentals....LOL..WTF are fundamentals?

Wed, 11/06/2013 - 11:11 | 4126811 yogibear
yogibear's picture

The only fundamental is the central banks. Nothing else matters.

Wed, 11/06/2013 - 11:11 | 4126818 El Hosel
El Hosel's picture

New Normal sell signal, all the bad news is priced in.

Wed, 11/06/2013 - 11:26 | 4126891 Meat Hammer
Meat Hammer's picture

Doc, it's fun-for-da-mentals - that's what they mean by fundamentals.  It's what the cool-kid banksters are saying these days. The psychopaths that run this country are having a blast.

Wed, 11/06/2013 - 11:06 | 4126795 6th of May
6th of May's picture

Our damn potatoe prices doubled this year!

Low inflation my butt :(

Wed, 11/06/2013 - 11:09 | 4126804 fonzannoon
fonzannoon's picture

you paid an extra premium for the e

Wed, 11/06/2013 - 11:41 | 4126961 greatbeard
greatbeard's picture

>> an extra premium for the e

The ubiquitious Dan Quayle tax

Wed, 11/06/2013 - 11:14 | 4126829 Sudden Debt
Sudden Debt's picture

AND BEER PRICES ALSO ROSE AGAIN THIS MONTH!!!

PRETTY SOON COCAINE WILL BE CHEAPER THAN BEER!

Wed, 11/06/2013 - 11:09 | 4126808 El Hosel
El Hosel's picture

...... Because "they" don't ring a bell at the top.

 

DING DING DING... Bitchezzz.

Wed, 11/06/2013 - 11:11 | 4126813 Max Damage
Max Damage's picture

When these central bank pricks said more communication I didn't know that included telling everyone the day before!!!. As posted higher up normally the insiders get the nod first, a few seconds early. Not a full day early. Wankers

Wed, 11/06/2013 - 12:48 | 4127266 Ghordius
Ghordius's picture

actually it's still Bloomberg citing MarketNews citing an unknown senior EuroSystem source. so it's a rumour

more properly, it's an American corp citing a Canadian corp citing an unknown European cb official

Wed, 11/06/2013 - 11:12 | 4126823 LawsofPhysics
LawsofPhysics's picture

Just like Zimbabwe, especially now that the world recognizes that all bond "markets" are bogus.

Wed, 11/06/2013 - 11:20 | 4126861 Rainman
Rainman's picture

Ditto for the crude oil  "markets " ( not that we didn't already know it )

http://www.bloomberg.com/news/2013-11-06/brent-crude-traders-claim-proof-bfoe-boys-rigged-market.html

Wed, 11/06/2013 - 11:14 | 4126828 yogibear
yogibear's picture

Top calls for  quite some time now. 

Fund managers and banksters want a nice fat year-end bonus. It's what the central banks are delivering.

Wed, 11/06/2013 - 11:14 | 4126831 q99x2
q99x2's picture

Be Safe.

BTFATH It's only software.

No Fear.

Wed, 11/06/2013 - 11:16 | 4126840 Widowmaker
Widowmaker's picture

Get real.  Rates are moot, a complete sideshow.

The only plan in town is print, print, PRINT the way out of fraud, broken markets, and confidence!

Politics is bought and paid for, thus any expectation whatsoever of another direction is dead on arrival.

You're poor.  You don't count.  If you are under 50 you are a generation of Fascist shit-eaters.

Wed, 11/06/2013 - 11:16 | 4126845 Took Red Pill
Took Red Pill's picture

and the rich just keep getting richer

Wed, 11/06/2013 - 11:18 | 4126852 LawsofPhysics
LawsofPhysics's picture

Yes, and they/we will get exponentially richer now.

the good news; we will all be trillionaires.

the bad news; we will all be trillionaires.

Wed, 11/06/2013 - 11:20 | 4126858 Meat Hammer
Meat Hammer's picture

I ain't fightin the Fed, but I've got one foot out the door.

Excuse me while I say good morning to my stack.

Wed, 11/06/2013 - 11:23 | 4126877 ...out of space
...out of space's picture

yea sources defenitly know

and

if you know you dont tell, if you tell you dont know 

Wed, 11/06/2013 - 11:27 | 4126897 ebworthen
ebworthen's picture

So the ECB putting rates up to 5% would send the S&P to 2,000+ and solve the housing crisis?

Wed, 11/06/2013 - 11:36 | 4126934 Yen Cross
Yen Cross's picture

   Looks like a "sell the news" event to me, in the equity markets. (unless dragqueen announces LTRO2)

Wed, 11/06/2013 - 11:49 | 4126988 adr
adr's picture

Nobody is going to buy my house, but I can invest $20k in Netflix and hopefully another year will see 450% returns. Or maybe invest it in Bitcoin and see it go to over $1500 per coin.

Then I can buy my own house.

Still doesn't solve the problem of needing to sell my house to someone else so I can move for a new job.

Wed, 11/06/2013 - 11:53 | 4127008 LawsofPhysics
LawsofPhysics's picture

correct, nor does it solve the problem of falling wages and the hungry/angry mobs whose population is growing...

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