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Draghi Goes Out With A Bang
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Draghi Goes Out With A Bang

by The MoleSeptember 13, 2019

True to form Draghi decided to go out with a big bang. More QE, more asset purchases, more whatever it took to secure his final legacy of kicking the can down the road and having burdened Europe’s citizens with trillions of Euros in debt never to be repaid.

Thus further hollowing out the middle class and assuring increased polarization between the haves and have-nots. Job well done and we can assured a plethora of lucrative board seats await.

The Germans apparently were livid as to the prospect of rekindling Quantiative Easing and negative interest rates just 9 months after having taken steps toward normalization early this year.

And so by the way were the Dutch and French governors which in the end resulted in a purported public relations snafu that is widely interpreted as a veritable revolt within the ECB.

Now I’m not going to waste your time debating European central bank policy, as that would be moot and counter productive to our collective purpose, which of course is to stay ahead of the tape at all times and most importantly not get lured into traps.

Instead what I would impart on my intrepid readers the fact that any common rationale which may have held true and would have represented a solid edge in past and more innocent times these days may in fact get you bitch slapped and dropped to the curb like an ugly step child.

Sell The Rumor Buy The News

By all definitions the European Union is a sinking ship. Over the past three years BREXIT has turned into a Greek tragedy the likes of Sophocles would surely envy, Germany – the self proclaimed engine of the Eurozone – ย is turning off its lights and industry whilst heading into a recession.

Spain, Greece, Italy – let’s not even go there. And although it’s not widely reported in the MSM the French Yellow Vest movement shows no signs of waning and is approaching a year of violent demonstrations.

The situation in the U.S., despite the onset of the 2020 election season, by comparison seems rather tranquil. And whether you love or hate President Trump one must admit that his economic policies are in fact making a difference. Even a full blown trade war with China wasn’t able to break the camel’s back – at least for now.

Given all the above being short the Euro would have made sense after Draghi’s goodbye speech and the Q&A that followed. What happened instead of course was the exact opposite – the EUR jumped against the Dollar and has continued higher today.

In the end the old adage always rings true: Sell The Rumor, Buy The News.

The Dollar has been taking a hit over the past two weeks and I probably won’t touch it until the roll-over on the DX futures has fully played out. For now I’m eying a possible drop to the 97 mark where a long position after a retest may prove fruitful.

My gold campaign got stopped out at break/even during yesterday’s whipsaw but I decided to re-enter again today as gold reverted and touched my original entry range.

More market analysis below the fold:

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About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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  • http://iberianviews.blogspot.com/ catracho

    It’s a race to the bottom for currencies – each will have it’s turn – but the end effect will be the same –

  • ridingwaves

    yep, got gold……

  • https://evilspeculator.com Sir Mole III

    You’re such an optimist ๐Ÿ˜‰ But yes I agree – collectively all of them are losing purchasing power each year. It’s a built-in feature of fractional reserve banking which requires a steady flow of inflation.

  • Rightside

    Mole, did Trend day alert go out?

  • https://evilspeculator.com Sir Mole III

    I forgot to roll over the chart. Here’s today’s alert: NYSE TICK closed 50.46 % below and 49.54% above its zero mark. Probably Not A Trend Day!

  • https://evilspeculator.com Sir Mole III

    Actually I did receive one today. Check your spam box.

  • Julie 35 – 25 – 36

    Chief Thanks for the low down on Europe.MSM in U.S. not reporting very much
    JULIE

  • Julie 35 – 25 – 36

    Taking profit remainder 1/2 position long BAL Do not want to hold over weekend. VEEV no cigar yet
    JULIE

  • Julie 35 – 25 – 36

    TLT blasts down thru 139 target $TNX up thru 55 ema $BKX at 101 – 102 target Guys Not sure if anyone has noticed XHB home builders setting up for a short with rise in rates.(30 year yield) Today a second gap up that has been sold into XHB also at top of a channel
    JULIE

  • Julie 35 – 25 – 36
  • http://gerb-reloaded.blogspot.com Gold_Gerb

    INDU,
    Take half a day sick, and the boss dings me for not having my calendar set to OOO?
    F’Him and his TPS reports.
    https://uploads.disquscdn.com/images/4d18c5c80901cd2a4e5865529ce8f4803c2fe1e9c0c590865ceff9c053f313cf.png

  • Julie 35 – 25 – 36

    TLT Again blasts down thru 139 target Now https://uploads.disquscdn.com/images/bf2c146e7f351ea39b5825298c97e1b5fb66946811950a4dde3e9167a865654d.png watching 89 and 144 ema’s matching lower trend lines
    JULIE

  • http://gerb-reloaded.blogspot.com Gold_Gerb

    game over man, game over.
    actually, there’s another bus stop, down here somewhere.
    https://uploads.disquscdn.com/images/942f923ec893afef54bf5847fcde8f243751d756c7acddc46c7800bcdaa234a0.png

  • Julie 35 – 25 – 36

    GG Cyd gave an outstanding presentation last night PEN New Prez knocking cover off ball.Today PEN approaching her targets
    JULIE

  • Julie 35 – 25 – 36

    GG Your envelopes closely match mine
    JULIE

  • http://gerb-reloaded.blogspot.com Gold_Gerb
  • https://evilspeculator.com Sir Mole III

    Did everyone move to Alaska?

  • https://evilspeculator.com Sir Mole III

    I could go on but in a nutshell: Europe is heading into very tough times over the coming decade.

  • https://evilspeculator.com Sir Mole III
  • Julie 35 – 25 – 36

    Nice trade pepe You have a great weekend too
    JULIE

  • Julie 35 – 25 – 36

    GG What is a calendar set to 000 ? Tell your boss he has been out in the sun too long ! TPS Reports Tell him to do his own
    JULIE

  • Julie 35 – 25 – 36
  • Julie 35 – 25 – 36

    Chief I have a friend whose husband has been transferred to Prescott AZ They like it there very much. I believe you stated that Prescott was on your list
    JULIE

  • http://gerb-reloaded.blogspot.com Gold_Gerb

    you can only push a man, so far.
    https://www.virtualstapler.com/images/OfficeSpace/film-officespace-2-18.jpg
    “..from my cold dead hands”

  • http://gerb-reloaded.blogspot.com Gold_Gerb
  • Julie 35 – 25 – 36

    GG We are going to Portland next week Cyd just bought a white Cayenne several years old that a mechanic told her to snap up.Going to spend some time with family. Grizz will do some salmon fishing at some places he used to go.
    JULIE

  • http://gerb-reloaded.blogspot.com Gold_Gerb

    Cool. now remember – most car accidents happen when new to the driver.
    (take it easy)
    I’d confirmation bias that with stats – but I’m stepping out the door for lunch with my old InHell buddies.

  • Julie 35 – 25 – 36

    GG We will be in Portland for a week so she will get used to driving it. She is a safe and cautious driver Have a nice lunch with friends
    JULIE

  • Julie 35 – 25 – 36

    GG Those llamas are in danger of a crisp lightning bolt and they know it Run llama run lol
    JULIE

  • Julie 35 – 25 – 36

    Guys Watching the Banks $BKX here …. This could be a good one
    JULIE https://uploads.disquscdn.com/images/1d4fb8357452c56c3b1d3e6a141fd5957b7bb56d831f0aad09588154e7e5d42d.png

  • BKXtoZERO

    Those Bastard-O s……………..00000000000000000.

  • BKXtoZERO

    zero who?

  • mSquare

    SQ – Covered Sep19 $58 PUTs sold yesterday for a nice profit today. Thanks for the idea.

    This was a trade that almost did not work out as did not have a stop in place and was away from trading when it made yet another low in $55s earlier today

  • BKXtoZERO

    The good folks at work have me WORKING at work….. Q4 is always a bitch. They fart around all year then want a years worth of work in the final quarter. VIX creamed…. no fun ATM.

  • Julie 35 – 25 – 36

    BK Take another vacation right now. Leave them hanging then they will appreciate you more. Unreal at Intel The Evil Empire anyone on vacation or Sabbatical was always the scapegoat
    JULIE

  • BKXtoZERO

    I rest when I die….. was busy at home too last 3 weeks

  • Darkthirty

    Better keep Momma happy!

  • https://evilspeculator.com Sir Mole III

    Yes it’s on my list for sure.

  • https://evilspeculator.com Sir Mole III

    Enjoy your weekend everyone!

  • Rightside

    Ok received it in my inbox 3:26 eastern

  • Julie 35 – 25 – 36

    Thanks Chief You have a great weekend also
    JULIE

  • ridingwaves

    heat too, lots of it, I have some family there and though not the valley, it can get darn hot….much better tax situation….

  • http://gerb-reloaded.blogspot.com Gold_Gerb

    Misery loves company.
    ๐Ÿ˜‰

  • Julie 35 – 25 – 36

    Guys Bulls be careful A possible pullback could be in the cards nearing top of an uptrend line which could be a broadening top formation
    JULIE https://uploads.disquscdn.com/images/4fb368f13f9f33e466aa4ffbad2a0c6e625a2a4aa3c6d11e22380e7ad4ac6e30.png

  • http://gerb-reloaded.blogspot.com gold_gerb

    Saudi Arabia oil attack..
    Cui, Bono?

  • Mark Shinnick
  • Ivan Hrusovsky
  • https://evilspeculator.com Sir Mole III

    The entire site has been upgraded to PHP 7.4 over the weekend. If you run into any hiccups please let me know. Thanks in advance.

  • http://gerb-reloaded.blogspot.com gold_gerb

    If you were highly leveraged against oil, nice knowing you.

    https://uploads.disquscdn.com/images/e7e767caa97c3d9df08d1a6d0ef7c21b43524ad50304a9a4d62c74e2b9e99de8.jpg
    I look forward to BL’s morning surf report!

    Source: Bloomberg

    As Bloomberg notes, “for oil markets, itโ€™s the single worst sudden disruption ever, surpassing the loss of Kuwaiti and Iraqi petroleum supply in August 1990, when Saddam Hussein invaded his neighbor. It also exceeds the loss of Iranian oil output in 1979 during the Islamic Revolution, according to data from the U.S. Department of Energy.”

  • http://gerb-reloaded.blogspot.com gold_gerb

    As we’ve begun to say around here.
    “Never go full Beartard

    For those of you who like to peek at Analyst Headlines, don’t forget they can let you down.
    Wed – 9/11
    https://uploads.disquscdn.com/images/284797d475dc2fea48f8a1d65c21013861e07de4cbb0a519817ea33f4ffb275f.jpg

  • Cyd

    Mr G Natty Gas Then Cotton Next one Cocoa. Buy a puulback
    Cyd

  • http://gerb-reloaded.blogspot.com gold_gerb

    I’d sooner buy a Porsche.
    LOL.

  • Cyd

    We are flying out in the a.m for Portland and will be driving a Cayenne back. It has low miles and in excellent condition. It is my second Porsche. My 1st one was a 1968 912.

    Cyd

  • http://gerb-reloaded.blogspot.com gold_gerb

    seriously, cotton may have a shot.
    https://uploads.disquscdn.com/images/1a07cc41cee7529bac2fadcd4f48f81107b3ef2e96c24eb64e4ac1c13b9065f6.png

    but as I’ve said to Julie, I don’t like cotton panties in a recession. so-to-speak.

  • http://gerb-reloaded.blogspot.com gold_gerb

    enjoy that cheap gasoline, it may be your last.

    and Remember, me thinks the Oregon mandatory gas pumper man may be no-more. There were cut-backs.

  • Cyd

    Do you have a hybrid ? I have looked at those too
    Cyd.

  • http://gerb-reloaded.blogspot.com gold_gerb

    No. my employer is trying to coax us into them.

    I am skeptical.

  • Cyd

    A former boyfriend had a diesel truck.I was filling diesel and it got onto my hands and hair and even my clothes. Yuck ! I never drove it again
    Cyd

  • http://gerb-reloaded.blogspot.com gold_gerb

    You’ve got to kiss a lot of diesels before you find a Prince.
    ๐Ÿ˜‰
    speaking of which, Julie tattled. How’s the ‘new’ boyfriend going?

  • Cyd

    He is a real sweetheart and I like him. He is a member of our investment club and teaches school.I actually had my eye on him and Yes He came up to me and asked me on a date.Who knows ? Julie told me that she said I met someone to you
    Cyd

  • http://gerb-reloaded.blogspot.com gold_gerb

    I’m sure he’s a swell guy. May god have mercy on his soul.
    LOL.
    https://i.pinimg.com/originals/6c/82/6b/6c826ba67efb8984901de5053286a7f7.jpg

  • Cyd

    He is like Julie’s husband A wonderful regular guy who can do many things.Julie and I have had boy friends and looking back What was I thinking.One of Julie’s boy friends was a Greek shipping magnate and I dated the heir of Amerada Hess oil.I mean Mr G … !LOL!
    Cyd

  • http://gerb-reloaded.blogspot.com gold_gerb
  • Julie 35 – 25 – 36

    GG Cyd’s new boyfriend I told him she was single and he stepped up to the plate.He’s a nice guy and happy for her.Yeah I dated a Greek shipping tycoon and what a jerk
    JULIE

  • http://gerb-reloaded.blogspot.com gold_gerb

    wait just a minute….are you guys pillow fighting again?
    you can pack your own dam bag, ya’know?
    ๐Ÿ˜‰

  • http://gerb-reloaded.blogspot.com gold_gerb

    I dated a Princess of Andorra.
    at least that’s what she *told* me.
    ๐Ÿ˜‰

  • http://gerb-reloaded.blogspot.com gold_gerb
  • Cyd

    I texted Julie and told her to get online.No pillow fight
    Cyd

  • http://gerb-reloaded.blogspot.com gold_gerb

    Oil,
    60, unsustainable and closing.
    https://uploads.disquscdn.com/images/8d7981fb584a4693a6fa7cc0c32cf28e25b51c18b0ab7ff618242886e9b4c6f9.jpg
    whomever bought at $52, is taking the money, and running.

  • Julie 35 – 25 – 36

    GG Oil is tough play right now Futes down 22 on the e mini. We are still in cash with our 401K’s
    JULIE

  • http://gerb-reloaded.blogspot.com gold_gerb

    may your new car get a flat tire.

    =P

  • http://gerb-reloaded.blogspot.com gold_gerb

    playin’ with fire Sissy.

    https://youtu.be/0B1AifgW_0w

  • Cyd

    I know what a flight tire is.If your car has a flat tire on the way to the airport you can be on the next available flight with no penalty
    Cyd

  • Cyd

    That’s not how I would do it. I would burn leaves a different way. I would have a hose nearby and light it differently
    JULIE and Cyd

  • http://gerb-reloaded.blogspot.com gold_gerb
  • Cyd

    Julie is over at my house right now Last minute items to check off
    JULIE and Cyd

  • http://gerb-reloaded.blogspot.com gold_gerb

    photos! throw us some photos!!

  • Cyd

    New car photos … Sure ! Bikini photos … Well maybe LOL
    JULIE and Cyd

  • http://gerb-reloaded.blogspot.com gold_gerb

    Cyd, do put some appropriate air holes in the luggage. (for the blonde)
    ๐Ÿ˜‰

    http://d1v3t0rdobjdgs.cloudfront.net/wp-content/uploads/2017/09/04125110/funny_airport_photos_new_6_15027370196143.jpg

  • http://gerb-reloaded.blogspot.com gold_gerb
  • Cyd

    This is what we will do .We will do a mud wrestling in the pig slop for you guys …LOL!
    JULIE and Cyd

  • http://gerb-reloaded.blogspot.com gold_gerb

    Promises….Promises

  • Cyd

    Do you want a mud wrestling video or bikini shots on the hood of the new car ? You guys vote

    JULIE and Cyd

  • http://gerb-reloaded.blogspot.com gold_gerb

    Mud.
    white hoods have such harsh lighting.

    Have you considered a pink paint job?
    https://i.redd.it/xzmsceb6crj21.jpg

  • Cyd

    OK One vote mud wrestling LOL!

    JULIE and Cyd