As one commentator said.... " they had to do something to counteract the multiple bank downgrades yesterday evening". They did this via massive FED liquidity injections into Europe. The reports say the Banks of England, Canada and Japan all intervened too but they are all just a conduit for the FED and a massive printing of US Dollars. This bodes badly for our future. We have a congress of both parties that are not willing to make the tough decisions and a President who is in bed with the banks, who in turn are writing the rules to enable them to steal everything but the kitchen sink. November has been a tough month compared to October when I made around a 50 % return and without a clear vision my trades have tended to be defensive. I am glad I sold out of EUO yesterday. For now, until I see a move, YCS is my only position and it is a small one. The Dollar is no longer a safe place to hide but I think it will be stronger than the Yen.
I ended up cutting out AGQ and EUO. I left YCS on because the Yen seems to be over bought and the Japanese want their currency to weaken. Stocks held up well despite issues in Iran and a continued mess in Europe. I am not sure where we go from here the small speculators are heavily short the Euro so that is a crowded trade. Gold looks good but Silver seems a little weak.
I am going to sell my EUO position this morning. I will keep YCS. AGQ needs to close higher today or I am out of that too.
I do not have a good feel for the next big move so the current position of EUO,YCS and AGQ seems to be balanced and making money today. Most of the stock rally seems to be another big short squeeze.
Stock market is moving up as investors watch people crowd the shopping malls. Trading today will be thin and will tend to meaningless. I would like to get back into TYH because there is a big rally in the stock market somewhere but Europe needs a resolution which almost certainly involves the US Fed. I think that may come soon but in the meantime EUO and YCS seem to be a good place to hide and while AGQ is weak we are approaching the delivery month and PSLV is issuing another $ 1.5 Billion of Units which is a lot of silver = so we could see fireworks there in December. Today is not a good day to trade.
I have had a few days of less than stellar calls so I have changed to a more conservative position. I am short the Euro and the Yen. I am still long silver. All this is separate from my permanent long physical gold and silver position.
Talk is that the IMF will extend big credit lines to Europe. Since the US is 17 % or so of the IMF this means Europe will lend to Europe which isn't a long term solution but it has been enough to rally stocks.