Both moved nicely in our direction so I took profits. If there is one thing you can be sure about is that there is nothing to be sure about. Over all the indicators are that we will see more chaos from Europe this week as people realize that it isn't just Greece it is all the other PIIGS too. However, we are dealing in a world of government interference. A few weeks ago we saw an immediate 9% drop in the Swiss Franc as the government put a lid on it's value. Last night we saw a 3.5 % drop in the Yen as the BoJ intervened. I do not think Europe can be resolved without US assistance but we are now heading to the elections and you can be fairly sure the US will do whatever is needed. SO contrary to most good market indicators stocks are probably a buy around here but I am going to sit things out for now.
Monday does not look good for the Euro or stocks http://www.zerohedge.com/contributed/unfortunate-truth-about-overbought-stock-market
The market was set to open weak and has rallied. TZA is down &% so the trade isn't looking good so far. This is the end of the month so we will see some book dressing and of course the Feds want us to feel good about ourselves so the PPT may hold the market up. News from Europe isn't good and Monday could get worse... so for now I will stay with EUO and TZA
There is no logic to things at the moment and we could see a continued rally into the close as shorts get run in. The EURO and Stocks have had a huge rally, this rally could continue for several days who knows but at some time there should be a correction in here and that is why I am fading them by buying EUO and TZA.
Is down 17% on the day. There is a good chance it can rally from here just on technicals. The huge rally in the Euro must have wiped out a large block of speculative Euro shorts ( remember the COT's showed a big Euro short position ). So I am long EUO and TZA
I have taken a small position in EUO as the dollar is back to support levels.
Sometimes I become complacent and that leads to mistakes. It has been a very profitable few weeks and I decided to sell TYH and take a breather.