After all the recent market up and down daily chop, it really isn’t a surprise today was ‘up's’ turn to go as yesterday was ' downs' turn!. Of course this comes with usual afternoon rumors and speculation to swing the market. But there was one significant ‘fact’ that didn’t set up the initial burst of >10 SP handles in seconds and plunge back down and rise again. It was the BOE cold hard facts of a 100B lending program with hints of QE as the case for monetary easing was building to do something in July. Someone (country) has to go first and many times its UK leading the charge of policy action.
In the morning, Greek optimism picked up for ND party b/c there are now supposed ‘ secret’ polls all of a sudden and the online bookies have ND ahead. Yep, that’s what it’s come down to!. (Everyone now in agreement now whoever wins will get terms softened, but ND will be easier to deal with). Anyway on to the afternoon shenanigans and the Reuters story of how Central Bankers are ready to take steps to stabilize markets should the dam break after elections….. (Oh really, thank god!..(big sarcasm there). Yes, this expected and obvious step saw the computers falling over each other chasing this co-ordinated G20 readiness for over 10pts in seconds. The ES/ETF trade talked up endlessly lately was so clear here today. Single stocks did absolutely nothing.
All in, the market expectations have blossomed over Europe on all angles late in the week. The problem with that is it sets for disappointments and we all know Europe has a way of coming through on that front.