Both EUO and ZSL are up strongly today.  I am not sure of my previous logic of having them as a paired trade.  A paired trade is designed to make money regardless of the direction of the market.  Silver will tend to be weak regardless of the dollar but another foolish FED decision to put money into the same Too Big To Fail  banks would be good for Silver and bad for the dollar.  However, at the moment and as independent trades, being long the dollar and short silver seems to be working. 
We are at an early stage but some of the retoric from the Unions and  President Obama's implied agreement are cause for concern.  It is possible that The President will try to tie his re-election to what they used to call rabble raising.  There is no doubt about a general  disregard for both parties and an anger against government in general.  It bwould be a pity if the election focused on that aspect rather than curing the problems.  A union employment bananza on public works would mean that the President is more interested in his re-election that solving the problems.  Paul and Huntsman seem to have the better ideas but not the following.  For now, nothing has changed.  The break, if and when it comes, on silver could be hard and fast with just as fast a reversal if the President and FED say something stupid later this week.  For now it is hold EUO and ZSL and watch carefully - we are playing with their money at the moment.

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