Markets Leg Lower After Germany’s Finance Minister Says Rates Are Too Low

Germany’s finance minister, Wolfgang Shaeuble, is out talking greasy today — suggesting that rates were too low and that’s he’d like to see them higher. If I were a cynic, I’d start to believe they’re trying to walk markets lower.

We have a situation that demands attention here. It’s wholly retarded to have both QE and a clamoring for higher rates in Europe running simultaneously. But that’s what’s going on — following Draghi’s almost identical comments last week.

Eurostoxx 50 just took a leg lower — led lower by the Italian MIB.

Crude is lower by 2%. Breadth is 80% to the downside. You’re gonna want to avoid the market until crude levels improve. I’ve been in cash for the past two weeks — because I senses a shift in the risk matrix. My apprehension turned out to be warranted, as prices have continued to drop following my exit.

On the upside are retail stocks — always a gamble, since they’re firmly placed in a bear market for a long time now.