(11-23-14) In Thursday’s overnight session we saw the scheduled Draghi-speak occur when once again Mario the Magician was able to roil markets by jaw-boning the Euro down still further for a test of its most recent lows at 1.2375. We think the Euros are now a buy and that the test is now completed in that Draghi did not come up with anything concrete – just another round of jaw-boning which created long-side opportunities in the bonds and in the metals. We feel that the metals will now be a short, coming into the next week’s trade.
The Dec. Long Bonds which benefited from the Draghi-speak were able once again to trade back above 142. We have consistently been buying them at 141.06 and selling them on moves back to 142. However we believe any extension in Sunday night’s trade up to 142.10 or better would represent a fresh shorting opportunity.
The Jan. Crude Oil, which we had shorted several times on moves up to 76.60 taking half-dollars out in Friday’s session, was able to close near the highs.