Thursday, October 18, 2007
Euro back breaker
Today's new high is our trigger for backing down from the Euro-bearish stance. Betting against the Euro bubble is akin to betting for the reviled USD, and while I expect it could still work out for a contrary trade, I cannot any longer maintain a bearish Euro bias. The Dollar either double bottoms here or it takes an emotional next step to Bananaville. We take losses on occasion among our gains. The key is to maintain proportions and risk management. Since I never identified the vehicle with which I am short the Euro, I will not do so now. But the position is doing poorly and may be abandoned today. Losses are part of deal. This loss (apparently) comes against a long gold & silver miner framework. So, it is what it is I guess. A thus far failed trade with limited damage.