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CENTRAL BANKS EURO STICK SAVE 1 comment
Evidently central banks, including our own no doubt, like a weak dollar. So with markets on edge, central banks stepped-in with rumors of intervention against the rising dollar. This led to a reversal in stocks as a weak dollar has been supportive to U.S. stocks. (This, ladies and gentlemen, is done while articulating a strong dollar policy.) But, stocks were oversold anyway so a rally was due as we suggested Wednesday. Let's not forget quad-witching is at hand Friday to put a bow on a volatile week.
The 3 PM rally in stocks occurred just after rumors rallied the euro. You see the banksters don't really have to do anything just float the idea.
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This post has 1 comment:
It reminds me of Orwell's 1984 -- "1000 lies makes one truth". If anything, someone at the ECB asked the questions "What if ... Greece ... blah, blah" and some mindless listener started a rumor that they were contemplating intervention. At that rate, one could say they are contemplating intervention any day of the week in any circumstance whatsoever.
But to the extent it gives traders a chance to ride the hysteria and take money from suckers who panic, it's all good fun and games.
BTW: Love the hocky photo!
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