It was another miserable week for the longs. The euro rolled over and the dollar rallied. Fear and uncertainty have set in and everyone is looking over their shoulders. Headlines seem to be coming faster and with less accuracy and the volume is anemic, yet we go lower.
Belgium was downgraded by S&P today and borrowing costs In Italy and elsewhere are rising. Even Germany (the best house in a bad neighborhood is seeing upticks). It’s ugly.
A day after a summit in Strasbourg with German Chancellor Angela Merkel and French President Nicolas Sarkozy, Mr Monti’s press office reported the two leaders had said a debt collapse in Italy would be “the end of the euro.” How soon before that levee breaks?
There appears to be a civil war brewing in Syria, Egypt is heating up, Iran and Israel is coming close to some form of closure and Russia wants to point nukes at our bases in Europe and oil continues to hang above 95 bucks.
Some ideas on my Premium Site the last couple of weeks from the short side include:
CVD-short at 47 current 43.30
BEN- short 99.40 current 92.30
CHSI- short at 49.70 current 48
EWP- short at 31.62 current 29.67
FOSL- short at 89.93 current 83.30
FAZ-long 43, current 53
MOS- short 50.34 current 49.76
AGU-short 69.50 current 66.80
We’ve also been short the Euro.
Next week will be interesting, and we may be setting up for a strong relief rally. These rallies will be shortable opportunities in my opinion until such time when we decouple from Europe, and that won’t be for quite a while. If you would like to become a member, please see the information below. Do you have a plan?
You can subscribe here, or to request more information or performance stats. email: [email protected]