Managed by the ECB, the SMP is defined as follows (link):
Interventions by the Eurosystem in public and private debt securities markets in the euro area to ensure depth and liquidity in those market segments that are dysfunctional. The objective is to restore an appropriate monetary policy transmission mechanism, and thus the effective conduct of monetary policy oriented towards price stability in the medium term. The impact of these interventions is sterilised through specific operations to re-absorb the liquidity injected and thereby ensure that the monetary policy stance is not affected.
Sitting in this range is making it hard to find setups that I like.
I rolled up some SPY 117/110 Bear Spreads to 120/117. I don’t believe so much in this rally. If it’s real the shorts should be covered here, and we’ll blow through the 120 resistance by EOD (on volume?), but if it’s not we’ll pull back again at least to 115 and my initial 117/110 spread will go the way of, ‘phew’.
What makes me doubt the optimism?
Gold ( GC_F ), it’s trading too much like the market… It should be falling if the risk trades were flowing back into equities.
Europe is filling the airwaves with marketing spin, Slovakia is copying the republican freshmen, and Greece just won’t go away.
The run up yesterday on such light volume.
I can simply count on the fact that it’ll probably surprise me…