In a report by the Wall Street Journal, European Central Bank (ECB) President Mario Draghi won't be present at the annual conference of central bankers in the Wyoming resort town of Jackson Hole, the ECB said Tuesday. Will this affect the markets such as the (DIA) or (SPY) positively or negatively?
An ECB spokesperson wrote in an email,
ECB President Mario Draghi had hoped to attend the annual economic symposium in Jackson Hole organized by the Federal Reserve Bank of Kansas City, but has decided not to go to Jackson Hole, due to the heavy workload foreseen in the next few days.
No one from the ECB's executive board will attend the conference, which kicks off Thursday, the spokesman added.
In July, European Central Bank President Mario Draghi stated the ECB was prepared to do whatever it takes to preserve the euro, advancing the EU currency versus the dollar. Gold (GLD) futures are down after hitting 1,670 on Friday. Gold rallied for the past seven sessions to five month highs. Many have expounded on the virtues of gold, gold miners (GDX) and silver (SLV) based on the perception that QE is a lock. All these ETFs are up sharply in recent weeks. Charts provided by Finviz.com
SPDR Gold Shares
Market Vectors Gold Miners ETF
iShares Silver Trust
The Bottom Line
Although the report first appears negative at the outset, I believe investors will eventually see this as a clever move on the part of Draghi. He creates a win-win scenario for the ECB and the Fed.
On one hand, Draghi looks like he is all business and focused on Europe at the same time stealing no thunder from Bernanke and the FED at Jackson Hole. Secondly, the Fed is essentially up first, leaving Draghi to bat clean up regarding Europe. This should provide a well-timed one two punch the market needs to spark a rally.
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Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in GLD, SLV, GDX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.