What do the NFL and European Central Bank have in common?

hc-patriots-deflating-footballs-0121-20150120While the NFL investigates whether the New England Patriots cheated in last weekend’s AFC Championship win by intentionally deflating 11 of 12 footballs, the European Central Bank is also preoccupied with deflation – the monetary kind. In December consumer prices in the Eurozone fell by 0.2% from 12 months earlier. The deflation is a symptom of Europe’s persistent economic weakness. The fact that prices are falling is putting pressure on the ECB to cut interest rates or  launch a quantitative easing (QE) program.

Tomorrow Wall Street’s eyes will be on ECB Mario Draghi to see if he’ll announce some sort of initiative to boost money supply in an effort to inflate Europe’s economy.  Since an ECB move is widely expected, failure by Draghi & Co. to act (or act enough) could send US stocks lower.

My newsletter’s intermediate-trend timing model for European funds is very close to an intermediate-trend buy signal, but several weeks away from a potential major trend buy signal. Trades are based on Vanguard FTSE Europe (VGK).

 

Your thoughts?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s