click on chart for sharper image
The same applies to the US equity indices. Prior to the morning bond intervention, US equity futures were down around 30 points. They rallied to minus 10. However at the US open, futures were once again down 30 points.
Expect volatile action. I am not willing to guess how the day ends. However, I will guess how this intervention ends - and that is badly - in spite of the early apparent success of the ECB's Bond-Market Bazooka Play.
I am sticking with what I said in Gold Cries "BullSheet"
Intervention Cannot Possibly WorkOcean of Devastating Red
Short of the ECB buying all Italian bonds, all French bonds, and all Spanish bonds how can it? Even then, by what rationale can anyone other than an idiot purport "the system is working".
For more on idiots and how they think, please consider Do These Idiots Realize How Stupid They Sound?
Gold has held on to most of its gains, silver has not.
The $HUI (unhedged mining index), SLV (Silver ETF), GLD (Gold ETF), TLT (the Lehman 20+ Year Treasury Index), and DUG (an inverse energy index) are about the only things "green" on my screen in an ocean of devastating red.
Equity futures just plunged to a fresh low after one attempt at a flagpole rally failed. The day is still early.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List