Why does the average retail trader refuse to accept when the prevailing view has changed.
Mario Draghi sent us the clearest possible signal at midday yesterday and that message has been dramatically amplified today.
Don’t fight the tape. Don’t over-think it.
We know know the stakes. The ECB has do do everything: Cut rates, LTRO, bond buying, banking license for the ESM.
Until they fail to produce all of the above, the market is gonna hold up. Once they disappoint, then it is okay to bet against the euro. It’s pretty futile to buck the trend at this stage.
