So after massive run up in the Equities, which is just the norm these days, with a down day a collectors item now, Draghi said in the ECB press conference that they had the reins in place for QE but mentioned it would happen early next year not necessarily January, but maintained that he would like to see the effectiveness of existing policy before embarking in such a move.
The markets didn't like that and we saw a 200 point turnaround in the Dax, which is warranted given the 900 point move up we had based on the idea QE was happening. However it just seems like Central Bankers just cant let this market go down, its as if there is an agenda to ensure it continues in this trajectory. 3 hours after the ECB press conference finished "Sources" reported that the ECB are preparing a broad based QE package for Jan, with the the package envisaged to include all kinds of bonds but no Equities(apparently). This as you can imagine pushed everything back up again, and we are back to where we were.
Although this hasn't been confirmed, the market is taking its weight in gold and pushing towards new highs.
Moral of the story is don't fight this market. I've been burned quite hard balking at the rationality of this 15% up move without any pullback, but it seems this is the new way. When you probably have central banks buying stocks, sellers have no chance!
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