Posts
The European Central Bank announced today that it will lend a record E$442B at an amazing 1% interest rate. It is its biggest allotment ever.
"The loan represents about 70 percent of the ECB's outstanding liquidity operations and 5 percent of euro zone economic output, and analysts said the generous supply of funds should bring down money market rates. It's an extremely generous offer from the ECB which you don't see from other central banks ..."
The 'green shoots' have been poured more fertilizer on top of them. This is why it is not possible to use any logic to forecast the market's direction, and that straddles are the way to go. With straddles you win either way, up or down.
With all this money being injected, the GLD straddles we posted yesterday will be flying soon. Actually, all straddles will.
GLD, UCO, UNG Straddles
SPY, IWM Straddles
We wonder whatever happened to the North Korean nuclear cargo ship that was to be intercepted by the US. The news being fed by the media have changed. Was the market about to crash?
Will the Fed make a similar announcement today?
No comments:
Post a Comment