Draghi Market Response: EUR Down, Gold Down, EU Bond Yields Down, EU Stocks Down, US Stocks Surge

Tyler Durden's picture

UPDATE: US equities surge on day-session open (as AAPL hits low of day)

Perception; Independence; Conditionality; Unlimited; Fully-Effective-Backstop. Draghi 'nailed-it' on the drinking game but it seems the world is not amused. The market's reaction to the new OMT is modest EUR weakness (and more JPY weakness), practically no change from US equities (and modest weakness in European equities), Gold and Silver disappointed at the 'conditionality' and not total print-fest; and yet 2Y Italian and Spanish bond yields - which flatlined for a while, are now dropping faster and the longer-dated Italian and Spanish yields are dropping also. US Treasuries are 5-6bps higher in yield. In Summary: "Spanish bonds soaring on hope Spanish bonds will plunge to allow Spanish bonds to soar on ECB purchases" - everything else not impressed.


EURUSD rallied on no rate cut and fell on OMT reality...


2Y Spain and Italy yields were stable for a while then accelerated lower...


but European stocks are leaking lower...


Charts: Bloomberg

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tuttisaluti's picture

Buy the dips in Pm's

GetZeeGold's picture



Wow......it lasted all of 5 minutes this time....and then the boys figured out the BS.


sunaJ's picture

This is the new Long Slog.  Everyone knows the crash is inevitable, but we have to endure these years of interventions as the power structure refuses to submit to its own destruction, to the detriment of greater civilization.  The Long Slog is to be followed by the Epic Depression, subsequently followed by the Great Localization.  The hysterical powerbrokers will be fighting it the whole way, encouraging anyone to embrace the scapegoat of terrorism, illegal aliens, Iranians, homosexuality or the reviled political party of your choice.  Keep your eye on the ball because things will get weird(er).

zoggl's picture

Gold Down? May be for a second - and still very green. Is this worth typing a headline in ZH? I call this Boulevard jornalism.

Concentrated power has always been the enemy of liberty.'s picture

False Promises, Bitchez!

alien-IQ's picture

/ES...fuck. Parabolic.

Orly's picture

Wait 'til they realise that the bounce they created was on hopes of more free money.  Looking at the latest data, (whether true or false, it is the propaganda...) there is no way Dr. Bernanke is going to throw gasoline on this thing.

The bubble has already burst.  Now, the longs are finding more suckers to pull into the maelstrom before the levee breaks.

Needless to say, all of this is unsustainable.  Gravity is a mere matter of time.


Non Passaran's picture

I am seeing US markets at 1%+ up (delayed quotes)!

MFLTucson's picture

The world of lying leaders!

Sudden Debt's picture

We need a Idiotic Hopium Index!!



SAT 800's picture

The S&P 500 works pretty good as a stand-in!  Book Him, Dano!, (hawaii 5-0).

vertexa's picture

profit taking?

scatterbrains's picture

stocks ar a yawn, gasoline though loves it  up 2%  and rocketing.  Lets hit that brick wall head on bitchezzz!

Jlmadyson's picture


These people are crazy.

Life of Illusion's picture


Draighi designed this when at FSB,,,to take assets under control



RiskAverseAlertBlog's picture

Conditionality? You mean like a treaty agreement limiting sovereigns to budget deficits capped at 3% of GDP? Nothing but a banking dictatorship's dream world of lies.

Cognitive Dissonance's picture

"Draghi Market Response: EUR Down, Gold Down, EU Bond Yields Down, EU Stocks Down, US Stocks Surge"

As far as the global petro dollar currency reserve is concerned........US Stocks Surge is the only response that counts.

stika's picture

not really up to date, the order from the ECB to BUY EM ALL was due in the mid of the conf call... the big rally in the Eu stock market started at 1300 GMT sharp. almost 2% in a matter of 30 minutes. 

stika's picture

the move is called "boosting the confidence". seems it's not really working in the EUR/$ tough.

Gtinkham's picture

Dragass market response.


Ancona's picture

Umm.....Isn't there an important German supreme court decision that has this shit all hanging in the balance??

Boilermaker's picture

I think you mean a statement.  A decision implies that they are actually considering denying it.

SAT 800's picture

When is the breaking point when a great ship has a hole in it? When it's down 12 degrees by the bow? When the stacks disappear under the surface? When it's halfway to the bottom of that cold, cold, sea? There isn't any breaking point; it's a process, and it's well underway.

Oh regional Indian's picture

The levers in the hands of the controllers are endless. 

The simulation is running perfectly.

No capable human subjects are showing extreme distress.

Gold today, Oil tomorrow, Silver there-after, corn for good measure, did we forget iron ore? What a bore, let's crash the Loonie, spike the Yen and count to ten.

Then drone a kill, or 25,

And show it on the TV, live.

Still the capable people snore.

All is good.

The simulation is running perfectly.



Spastica Rex's picture

The simulation is running perfectly.

I DK, seems like we're seeing a lot of glitches in the Matrix of late.

Oh regional Indian's picture

The simulation has them glitches covered.

Programmed out-liers. Like you and me. ;-)


disabledvet's picture

There's no glitch. (tapping chalk board) ATTENTION Class of Tylers Durden! (tapping chalk board)....not only is the the Fed financing the American engagement in the ME...but so is now the ECB AND the BOC AND the BOJ AND...

adr's picture

Bots love keywords. In a market with no human traders, this is what we get. Humans can figure out the keywords are actually meaningless, bots can't.

Draghi sould have started the speech with, "I'm going to say a whole bunch of algo bot market ramp keywords. All my friends at Goldman have positioned themselves for maximum profit from my speech."

I guess Goldman didn't want Obama re-elected with this move putting oil near $100 and gas will shoot over $4 again. Of course the financial media has been saying for the last ten years that a weaker Euro means cheaper oil.

Spastica Rex's picture

Interesting thought.

Gas higher + stocks higher and who's happy?

Not the plebs.

AynRandFan's picture

Let's see.  If we invest money today in plants and equipment, we can sell our products tomorrow for money that is worth half as much.  Great!

Lost Wages's picture

No matter what, the stocks I sold in May keep going up. Getting ready to kill myself.

Cognitive Dissonance's picture

When you're ready to jump back in please let me know? That will be the sign for me to jump out. :)

Max Payne bitchez. That's what the middle class wealth transfer process is all about.

No one escapes.

Lost Wages's picture

I'm not jumping back in until after the next crash, so if the hologram rally continues indefinitely, it could be awhile.

MillionDollarBoner_'s picture

Printing is Printing. Period.

Just buy some PMs, already, then forget all this shit and get on with real life.

We're not here for a long time...

Xibalba's picture

HOME RUN with the baffle bat!  Next up - Muppet Sheep get Kim Kardashian posters! 


TPTB-represennted by the Bernank and NObama:  get everybody on board with this stock market thing going higher. We've got the sheep right where we want them- 4.00/gal gas, skyhigh real goods, they're our slaves for life if they want to go to college or by a house. The stock market gives the sheep the illision that every thing will be ok, all the while we slowly use thier 401k's to invest(sell to them) in this bullshit sky high stock market and buy us a little more time to implement our social fascist plan.


Central bank and the rest of the world mouthpeices: Check!

boiltherich's picture

I cannot understand how the euro is still 1.25, after years of bailouts and economy wrecking, and uncertainty and monstrous debt, by my thumbnail valuation for it should be no more than 60 cents. How can the market afford to keep floating this dog and pony show at over a buck? Why would they even deal in a currency that is doomed sooner or later and could be gone in any given month?

This value is recklessly high and probably the only thing keeping it alive at this point because if it were to be fairly valued at half a buck the inflation in Europe would be so high that the northern core would drop the euro like a stone cold turd. The point has been reached where the aims and needs of the north and south are in diametric opposition, mutually exclusive. No longer a battle of wills but of the pride of a few leaders, all want the euro dead by now but none wants to be blamed for the end of the euro, this is why it was said that Greece should have a six day work week, if they can just get Greece to leave on it's own they will be free to go as well. But this can't go on much longer, I hope.

MillionDollarBoner_'s picture

"I cannot understand how the euro is still 1.25"

Can you say "competitive devaluation"?

How 'bout "least worstest"?

Aw, heck - how' bout "they're ALL a crock of shit"?

stika's picture

I agree, the eur is overvalued, the ecb has a bigger balance sheet than the FED, with no doubt lower quality, over a smaller economy. just this fact is worth a higher price of gold in eur than the dollar, ie eur$ < 1

geewhiz190's picture

EU stocks down?  which one?

time2blowitup's picture

Party like it's 2007!!