The aforementioned Draghi statement--- Read more: http://www.businessinsider.com/mario-draghi-germany-speech-november-7-2012-11#ixzz2BZ2EYLvF Given his dovish sentiments, Euro plunged against the USD in anticipation of ECB response. This was true even as people were piling on to sell USD faced with an Obama victory (pricing in continued support for QE3, etc.). Tells me that Europe is the main driving force for global markets (as usual these days.)
dow futures were down 110 on the obama win then people started piling on and listening to the negative news. i think the bulk of the move is election related. on a crazy week like this i think it's probably better to evaluate the market after the close on friday.
From what I say, yesterday evening, S&P futures were down about 10. By midnight or so when Obama was called, they were flat again. Then Draghi's comments happened. From ZeroHedge: http://www.zerohedge.com/news/2012-...-reeling-after-exposing-bitter-european-truth It was shaping up like the perfect overnight ramp following yesterday's Goldilocks election result... and then Mario Draghi opened his mouth. DRAGHI SAYS DEBT CRISIS STARTING TO HURT GERMAN ECONOMY DRAGHI SAYS GERMAN RATES LOWER THAN THEY WOULD BE OTHERWISE DRAGHI: CRISIS MAKING GERMAN INTEREST RATES VERY LOW DRAGHI SAYS ECB'S OMT IS NOT DISGUISED FINANCING OF GOVERNMENTS - correct: it is quite overt End result, after surging to nearly 1.29 last night, the EURUSD plunged in minutes, and just hit 1.275, the lowest in over two months. (this is referring to the EURUSD, but the market moved in parallel) I agree here - lots of noise going on.
That's a fair point aobut dividends - I got rid of my super high yielding div stocks like & DPO DPD which I've been holding for a few years awhile back, and replaced them with some of the muni etfs just to park the cash to wait out the fiscal cliff. I'm not sure about "romney might win" buying being too signficant given that he looked like a likely loser for most of Sept/Octl, other than maybe a week or 10 days after Denver.
hmmm granted i didnt keep up with them religiously, but i thought i remember them trading down as the election results were indicating an obama victory. i do remember glancing at them around 3am and they were flat and i dismissed it. guess it was legit.
