The Closing Look

Before Thursday’s open, the ECB held their latest meeting and did not increase or extend QE and held rates steady. Initially, that disappointed some investors who wanted more easy money from the ECB. Mario Draghi, head of the ECB, said the European central bank did not discuss an extension of QE but did say the program will run until the end of next March or beyond, if necessary. Of course, this is his way of hedging his bets in case they decide throw even more money at the process. Oil prices jumped over 4% which helped a slew of oil stocks breakout above important near term areas of resistance.

Gary’s Thoughts: Majot indices remain eerily quiet. We mentioned on radio there will soon be a move from this tight range so be ready. The biggest issue is the volatility is so low while bullishness has picked up. One bad down day out of this range could be important. Also, notice how market did not react well to ECB just not adding anything else. You mean $1 trillion/year printing money, negative rates and buying up markets is not enough?