ECB today made clear, that there is NO CHANCE for a rate cut …
Due to the current inflation picture, most of the ECB council members see a case for a RATE HIKE …
Trichet sees the possibility for a JULY “small” rate hike …
So … this means NO MORE RATE CUTS … neither from the […]

A total of EUR791 million was borrowed in overnight funds at the 5.00% penalty rate as of Sunday, the European Central Bank said. AUTSCH …
UK lenders sold off heavily as Bradford and Bingley (down more than 23%) came out with a profit warning …
Northern Rock replayed???
HBOS were down more than 11% as investors ducked […]

Bonds are selling off as June contracts are close to expire …
WHY???
Inflation is ramping, credit crunch seems managable … so the Hedges are SOLD.
And now the speculation starts … WHAT’s NEXT???
Interest rates HAVE TO RISE!!! Next step of FED and ECB will be UP … a rate HIKE!!!
This is reflected first in selling of long […]

Markets are hesitating to move away from the current level …
So far May hast produced twice the “1-day-squeeze-2-days-sell-pattern” …
Tomorrow will be interesting as we get our deserved weekly candle …
In the S&P, 1400 is the watershed … as last week opened here …
A close below 1400 would call for more downside … the financials […]

After a lot of ECB members reiterated their position, that in the current environment there is no interest rate cut possible and adequate …
Today a new quality was reached.
As we know, part of the communication of the ECB is to “leak” policy changes via so called “source-stories” in selected media channels …
Story of today:
ECB is […]

We are still stuck … Market can’t rise, doesn’t want to fall …
BoE lowered rates and ECB kept them unchanged … as expected
WalMart guided higher … as Americans buy on the cheap as they face problems.
Dupont guided higher … on exchange rates.
Intel got upgraded …
At least something.
But as problems persist, highlighted by especially Goldman Sachs […]

Message understood … “they” are really worried …
Who is “they”?
The FED, the Government, all the (investment) banks who fight for survival.
They fight for every(!) single day, they can hold the markets up. This might end in desaster mode …
Today’s news was:
- Gulf investors see more capital needed to save Citibank
- Intel cuts outlook
- S&P […]

Welcome to Volatility-Land …
20 points in the S&P or 40 in the NQ … no problem … 100 points in the Dax … whenever you want … down … up … down … and next attempt to the upside. I have to admit, that it is DIFFICULT …
No profit is save, no stop is far […]