You could easily be right as logic and history are on your side. However , I don't how large market players ( for want of a better term ) reconcile that global economic growth is contracting faster and faster and that Central Banks all over the world have failed to arrest this trend and one day soon if it hasn't already happened investors will lose complete confidence in them and will sell at any cost. All they ( CB's ) really have now is rhetoric and it's spell last a few days.
USA 2%, UK 1.9%, German 1.8% and Japan less than 1%. All of these countries GDP growth rates are trending downwards now. If I controlled large positions in the global markets I wouldn't want to be the last one out of the building so this is a matter of who blinks first and with a lack of liquidity both in equities and options markets that could happen anytime. Be interesting to see how a negative GDP reading tonight would affect US markets. How do you reconcile weak/negative GDP reads against a Fed who has 4 rate rises scheduled for this year.
Anyway, someone took the stick to German stocks last nite. Deutsche bank down 5.5%, Merck and Lufthansa down 5% and the list goes on.
