kaltbaum premarket
There is no template for trading in this environment. Markets move on words and yapping…and when the yapping doesn’t come through, markets turn. Last week’s gap and move was on the ECB non-stop talk about asset purchases…just like Bernanke does. Markets waited…and today…were disappointed. I don’t know what else to say except we have been smart in playing lightly. Here is what I wrote this morning:
I will alert you on AMZN and HD. HD is nearing the 50 day.
MESSAGE TO DRAGHI…SHUT UP OR QUIT”
By Gary Kaltbaum-August 2,2012
Ok…I know many reading this are asking…what’s a Draghi? Who’s Draghi? Well…he is the money mouthpiece for the European Central Bank. And oh yes, he was a Governor for the bank of Italy while Italy was running up deficits. He is the head honcho, top dog, big cheese at the ECB.
Why am I pissed? Simple. I am sick and tired of the constant interference in markets. I am sick and tired of the constant yapping out of these people that somehow have markets waiting breathless. Last week, this man and his cohorts, in a non-stop yap-fest, came out and stated that the ECB was ready. Ready for what? Ready to enact the same stupidity that for whatever reason, the market loves. And that is the same thing Bernanke has been doing…printing money to buy assets in order to lower interest rates, in order to goose spending which would help flagging economies in Europe.
On this noise, markets ripped 500 points in a couple days. On Thursday, a 250 point Dow gap. On Friday, another 200 point love-fest as they wouldn’t shut up all day. My issue is simple. Markets would not have ripped without their words.
I am quite sure Draghi and the rest read the newspapers. For the past few days, every article was about today’s conference where Draghi would speak. Every article and every commentary was about the ECB undergoing serious actions. After all, didn’t they telegraph serious moves to come. Well…what does Draghi do today…NOTHING! Absolutely NOTHING! So…open your mouth several times. Goose the markets…and now disappoint.
Futures have tanked this morning on this non-action. This man and the rest of the ECB are tone deaf. They have been the cause of the problems and they are amazingly, still in power to try and fix the problems.
This manipulation and interference of the markets must stop. Investors have been leaving the markets in droves because of lack of confidence. Yesterday’s screwed up trading just adds to the problem. And now this!
Go here to read more: http://subscriptions.tradingmarkets.com/kaltbaum/tomorrow/2012-08-02