watchful wednesday, page-50

First I want to thank dascore for his contribution. I've been following his calls and I'm very impressed. Hopefully I haven't jinxed him in anyway by saying this...

Does anyone know if Robbbbb, Volt and the gang are ever coming back? Gurus, if you are reading this, we need you!

The Euro has rallied strongly based on the expected rate rise tonight by ECB. It all depends on the 'tone' of the commentary that follows from the Rothschild controlled European central bank.

In simple terms, if we look at the theory of 'buying the rumour, selling the news', how would that work in this scenario? Well it gets tricky.

What is good news and what is bad? Some are of the view that lowering rates means stronger market so they see rates going up as bad news. Others, including myself, are of the view that rates go up in a good economy and a rate rise can be viewed positively in many cases. That is why the commentary that follows the decision is often more important than the decision/news itself.

If this is the beginning of many rate rises to follow for the ECB, then that suggests inflation is on the up. Or will this rate rise be just the one and then no change or even down again with rates in a year or two? the commentary should give some clues.

Either way, the market usually tries to punish rate rises. What is interesting is that this is done before the new is announced (by the rumour, sell the news).

This suggests that after the announcement the market will rally again.

Please note - the author is net short but lacks confidence (aka bullocks) in his position. The author is often wrong and this may help.