US, European Markets tumble after “Draghi drone strike”

Dec 4, 2014, (10:17AM EST)

Okay, so the ECB President Mario Draghi has just finished his press conference and now, we can all concentrate back on U.S. and European markets, that have started dropping like nine pins.

Didn’t I tell you that this week was going to be special? 🙂

So, the “specialty” of this week is the “Draghi Drone strike” on markets speculators and easy junkies who were expecting more QE from the ECB, but instead, got the bomb of “QE reassessment” dropped on their heads! In essence, a crash in oil prices has cancelled any new stimulus program from the central bank, and on top of that, there are talks of “reassessing” the current stimulus!  In short, not only markets junkies can forget about some new “liquidity gifts” ; they might also lose whatever free liquidity was fuelling markets’ rally till now. Hmmm.. that’s pretty bad, losing whatever was in hand and not getting anything new either 🙂

These developments in the ECB policy also pose a risk of similar QE postponement from other central banks.

That’s why European and U.S. markets have started coming down in a hurry as QE hopes get dashed, QE rally balloon’s get pin-pricked and bears like me rejoice in markets 🙂

“Revenge of Draghi” can be a new movie in Hollywood. (and Mario Draghi can play Yoda in the movie 🙂  while hinting that a sovereign QE’s idea would be illegal, the ECB president sounded just like the Jedi Master when he said  “Would not be best use of our time to discuss things that are illegal”. :))

So, right now, bears are making markets dance to their tune and having a party in stock markets.

Selling at every bounce seems to be a good trading strategy in markets, at least for now. The closing levels in Dow Jones will indicate if we are going to see a re-start of correction in these markets or not.

You can join market bears; I’ll sit back and enjoy the new episode in “market entertainment” 🙂

See you later!

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