The markets should be much weaker and they aren't - I don't like that because something may be in the wind.  Things were similar just before the previous big break down and I covered my shorts too soon - thus missing a big chance to make a profit.  I am holding to my shorts - for now -  in the hope that this will be a similar gut check before a drop but market movements do not always repeat themselves.

http://www.robertsinn.com/2011/11/14/eurusd-storm-on-the-horizon/?p=4733?utm_medium=related_plugin&utm_campaign=related_plugin&utm_source=pointsandfigures.com

TZA and ZSL both traded a little better than EUO but nothing that can't get wiped out in seconds in these unpredictable times.  We are headed to the budget cutting showdown and China seems to be taking a bit of a hit so I still think we can get a down market for a while and am holding all three positions.

I had a big position in EUO.  I have reduced that by half and put the proceeds into TZA and ZSL.  Now we wait.

EUO is back up this morning as the Euro weakens.  This type of market activity ... up down up down is not good for markets as it scares away investors.  I am fairly convinced we are going to see a "down" period in both stocks and Gold and Silver as well as a strong period for the Dollar.  I intend to hold my short Euro position ( long EUO ) but I may reduce it a little in order to free up funds to buy ZSL.  If the markets fall they way I expect ZSL and EUO will go up but we could see a 20% move is ZSL versus a 10% move in EUO.  I also have a position in physical Gold and Silver which I do not count as trading but sometimes it doesn't hurt to hedge that position  by buying ZSL.

The Euro is strong on thin volume and fumes with shorts rushing to cover.  My EUO postion is back to where it started but I am staying with it until things change.  Normally I trade in and out and catch the quick sharp moves but tend to miss the longer term moves. This time I tried to play for the longer term and missed all the short moves.  It goes to show there are no rules in trading.

I expected a general wash out at the opening would give a buying opportunity.  Instead the market stayed higher and closed up modestly.  Gold and Silver were hit again and "they" kept a lid on the Dollar.  I did not like todays action and suspect we could see another sell off in stocks and even Gold and Silver.  EUO didn't do much and I still have a full position in it.

Support the Euro, squash Gold and Silver, feed bread to the masses by bidding up stocks - that is  our Central Banks at work .  I am staying with EUO until I see an alternative buying stocks before the weekend is a little risky for me although once the US does come to Europe's rescue via the IMF we may see stocks make new highs.