Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Huge move in the last 15 minutes as there is talk of Draghi talking to the Germans …
Draghi Said to Hold Talks With Weidmann on New ECB Measures, Draghi’s Proposal Said to Include Bond Buys, Rate Cut, New LTRO.
The S&P 500, after being on the cusp of breaking down Thursday in premarket, is now over July highs. 1 and a half sessions and the entire world changed.
Very similar to the 2nd half of 2011 when the market changed directions on a dime every few days or weeks with big volatility.
With the move the past two days, I now find it hard to believe Bernanke will bring QE. Probably more talk of vigilance and perhaps pushing out the extended rate language from 2014 to 2015 and/or a program similar to what the Bank of England did last meeting where they offer banks money in return for promises to lend it. A full QE seems to be a step too far with markets charging like this.
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