ECB President Mario Draghi said they “stand ready to do whatever it takes to save the Euro.”
That was enough to send the Dow Futures flying up 200 points at 6am (where we shorted them at 12,800 along with S&P at 1,350, RUT at 780 and Oil at $90) because no one cared that he also said “within our mandate” nor do the bulls seem to realize that this is already year 3 of the ECB doing “whatever it takes” to save the Euro and, apparently, it takes a HELL OF A LOT MORE than what they’ve already done.
We were silly, we should have flipped more bullish last night as Spain’s 10-year yields hit 7.75% – new highs on Spain and Italy’s 10-year have been pretty reliable BS triggers for more happy talk from the ECB, because “whatever it takes” is lying to investors and posturing and bluffing – WHATEVER IT TAKES to stop these rates from heading to double digits, which necessitated a $500Bn bailout for Greece and would mean TRILLIONS for Spain and EVEN MORE TRILLIONS for Italy.
If you don’t think there’s a limit to “whatever it takes” – see how fast the EU comes up with one Trillion – let alone five it would take for Spain and Italy (as if it would stop there). I have, sadly, seen hospitals do “whatever it takes” to keep terminal patients alive – they do a lot but, in the end, the patient still dies.
Of course, our motto at PSW is “We don’t care IF the markets are manipulated as long as we can figure out HOW the markets are manipulated and place our bets accordingly” so, early this morning, I put a note up for our Members, indicating how ridiculous the move was and indicating the shorting targets on the Futures. Just yesterday, right in the morning post, I mentioned our shorting target for the Dow Futures (/YM) was 12,650 and we hit it 2 times after the open with 2 drops below 12,600 where we stopped out with $500 per contract gains. Those are just the free ideas folks!
Every quarter, during earnings month, we like to show off with a few free trade ideas to give non-Members a chance to have some fun. We’ve been nailing it this month but July is almost over and so are…
