Thursday, September 6, 2012

ECB Attacks With All Guns Blazing

Today was all about ECB and Draghi's speech. Draghi got what he wanted, a 'bazooka', meaning the ECB will buy bonds whenever a country is in trouble and asks for help. Major US indices reacted great and gains were between 1.8 and 2.2%. European indices did even better with the biggest gains for troubled countries like Spain and Italy (up 4-5%).

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro didn't really get a boost despite the ECB-news, but overcame the 1.26-level.
Metals did ok, but not great, compared to the indices. They all pulled backed during the day. Silver was outperforming again with a 1.3% gain.
Oil also pulled back in the afternoon and went from +2% in the morning back down to a 0.6% loss, ouch!

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