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The euro broke 1.30 this morning for the first time in eleven months. Fear is hitting the euro area again and the U.S dollar is ramping higher which isn’t good for stocks at least for now. 1.30 was also a key psychological and technical level. I still think the euro goes much lower and I am still holding 2/3 position. Any rallies and I will short more.
It’s tough to say where the financials are going, but I think lower, maybe much lower if things in Europe get worse. Any kind of perceived good news though, will rally the tape as short sellers have probably stepped up their efforts.
We may have already seen our Santa Clause rally when we tagged and failed that 200 day moving average on the S&P. But you never know, if they can pull some kind of rabbit out of the hat things could change.
TED spreads and Libor rates are rising here and that’s not good. Germany still wont acquiesce and help Europe as they feel they will be caught holding the bag if they bailout out their euro partners.
FSLR cut forecast this morning and the stock was down 20% in pre market.
Crude is lower as OPEC agreed on output this morning. I am still watching for an entry in UCO and I will let you know.
I put WLT on as a day trade/swing yesterday on the chat room. When the dollar rallied the stock caved. I am still long and will keep you updated.
Today could get active so watch your email. I will let you know what I am seeing.
See you in the chat room.
Joe