Tuesday, June 5, 2012

Big day tomorrow ...

This will be short and sweet.

The ECB has it's press conference tomorrow.  Aside from a probable cut in a key interest rate the market will be looking for signals from ECB President Mario Draghi that he's willing to support periphery debt by buying bonds in the secondary market.

The market voted today that there will be a positive response to this question with all the major indexes up on the day.  More importantly my personal "fear gauge", the three month T-Bill discount rate, is signalling a positive outcome:

It will be an interesting day.

Those waiting for anything definitive regarding QE out of Ben Bernanke's speech on Thursday will be disappointed.  The Fed will be on hold for awhile for reasons I don't have the time to articulate here.

Tomorrow is the day to be positioned for the "pop", as long as Draghi cooperates.  If he doesn't it will get ugly ...