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Chicago trader: A contrarian play on Europe's QE

A trader signals an offer in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange (CBOE).
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A trader signals an offer in the Standard & Poor's 500 stock index options pit at the Chicago Board Options Exchange (CBOE).

Wednesday's Dow Jones report on the European Central Bank's expected quantitative easing policy suggested 50 billion euros ($58 billion) a month for one year. This report immediately mitigated the losses in the U.S. equity markets and catapulted the S&P 500 20 handles higher.

However, with a nearly $700 billion annual proposed QE policy on the table, one would think that equity markets would be even higher.