ECB unexpectedly cut its main benchmark rate by 25 basis points to 0.75%. Euro is falling against the dollar. Gold investors should take note that the reason behind ECB rate cut is fear of deflation.
Today the market had an important gap up which we used to sell long term SPY positions.
The marke internals shows that in both NYSE and Nasdaq cash is exiting the market. So I donâ€™t see the market moving higher if cash is getting out 2.6 vs 1 in NYSE and 3.29 vs. 1 in Nasdaq
We are still holding long term long positions but caution is need it at this levels.