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Stocks Dump & Euro Pumps As Draghi Says No "QE" Discussed

Tyler Durden's picture




 

While rate cuts were hoped for but not expected, the key to Draghi's jawboning or future easing efforts was hopes that the recent failed sterlizations of their SMP program (i.e. as close to outright money printing as they can get within the treaty as it stands) were supporting Europe. That was until:

  • DRAGHI SAYS STOPPING SMP STERILIZATION WAS NOT DISCUSSED

DAX is re-tumbling, EURUSD is soaring, and US Stocks have crumbled 10 points to overnight lows. It seems everyone wanted some intervention... and for now Draghi has disappointed.

 

Notice the knee-jerk reaction on the statement and now the follow-through as reality bites...

 

S&P futures VWAP is around 1749 so expect a few pumps to that if we are to drop..

 

Charts: Bloomberg

 

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Thu, 02/06/2014 - 10:01 | 4407506 Sudden Debt
Sudden Debt's picture

STRONG EURO AGAIN!!!

YEEEEAAY!!

RICH AGAIN!!

Thu, 02/06/2014 - 10:13 | 4407554 negative rates
negative rates's picture

I wish the real world would just leave me alone.

Thu, 02/06/2014 - 10:21 | 4407575 Stackers
Stackers's picture

Strong Euro again. Arrrrgggg. This really screws up my day job of importing mulitmillion dollar construction machinery from Europe. Thanks Draghi you just flushed $30k down the toilet for me this morning. This floating rate currency nonsense really screws with real world business bottom line in ways people can not imagine.... and not just fortune 500 multinational corporations either.

Thu, 02/06/2014 - 10:29 | 4407587 falak pema
falak pema's picture

you don't like free money markets and Friedman's mantra? 

You are someone who is out of step with the financial Pax Americana world since...1971.

You can always cover currency risk on real economic transactions at a premium but you can't cover irrational exuberance turned into pathological hubris and panic fiat speculative auto destruction...give a psychopathic uber-klass enuff rope...

Thu, 02/06/2014 - 10:43 | 4407602 Stackers
Stackers's picture

Actually I would not mind a free trading currency system if it was based on real "markets" that make moves based on fundamentals like GDP, trade deficits and such and not go flying off in who knows what direction depending on what some bureaucrat said, or didnt say, or should have said.

You used to be able to predict currency moves based on interest rate disparities, but with everyone now at zero and staying at zero, "predicting" and thus making sound business decisions is a crap shoot. My business model now feels like a trip to las vegas and betting on horses. Come on old Draghi, give me some QE and kill the euro, baby needs a new pair of shoes

Thu, 02/06/2014 - 10:35 | 4407595 Sudden Debt
Sudden Debt's picture

Hey, if you want quality machinery that you can't get in America you have to be willing to pay for it he

Thu, 02/06/2014 - 10:51 | 4407633 The Dunce
The Dunce's picture

Draghi's an asshat.  These motherfuckers go to the best schools just to get stupid.  Bastards.

Thu, 02/06/2014 - 10:03 | 4407511 youngman
youngman's picture

What do they know that we dont know??????

Thu, 02/06/2014 - 10:03 | 4407516 Motorhead
Motorhead's picture

I don't know.  But, hey, if we ask Cramer, then we'll know...to do the opposite!

Thu, 02/06/2014 - 10:17 | 4407563 negative rates
negative rates's picture

I was never so successful as when I applied that to my mothers words many moons ago, it still holds it's muster even today.

Thu, 02/06/2014 - 10:05 | 4407520 Sudden Debt
Sudden Debt's picture

how a 5000$ bottle of wine tastes like for example... that's one

 

Thu, 02/06/2014 - 10:09 | 4407528 Smegley Wanxalot
Smegley Wanxalot's picture

It tastes pretty much like a $10 bottle ... but with a $4,990 label on it.

Thu, 02/06/2014 - 10:11 | 4407544 Sudden Debt
Sudden Debt's picture

a 10$ bottle of wine... no... that's crap.

 

Thu, 02/06/2014 - 10:08 | 4407527 Stoploss
Stoploss's picture

Every single little thing is misspriced due to the FX manipulation.

Now the hammer swings..

Thu, 02/06/2014 - 10:11 | 4407541 LetThemEatRand
LetThemEatRand's picture

Can't touch this.  

Thu, 02/06/2014 - 10:45 | 4407625 it aint easy
it aint easy's picture

naa na na na, naaaa na

Thu, 02/06/2014 - 10:14 | 4407559 negative rates
negative rates's picture

The list just goes on and on.

Thu, 02/06/2014 - 10:05 | 4407519 Groundhog Day
Groundhog Day's picture

come on dragi the market is down 5 percent intervene already

Thu, 02/06/2014 - 10:13 | 4407545 Silver Sativa
Silver Sativa's picture

No one has any money!!111shiftkey4evr!1!!

Every "entity" is leveraged out; there is nothing more to sell, there is nothing more to conjure from air. Holy smokes, I read yesterday that even Americans are saving some money, and paying down debts. How come governments can't do that??

Hmm....

Thu, 02/06/2014 - 10:31 | 4407590 youngman
youngman's picture

Ask Puerto Rico....they are going to ty and sell some more debt.....lol

Thu, 02/06/2014 - 11:29 | 4407748 soopy
soopy's picture

dey ain't tumblin no more

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