Tuesday, November 22, 2011

Euro Spiking While sp500 Tanking

Last night, as the sp500 were making fresh lows in the 30 point variety - we're sitting around 1185 and I see the euro not able to make any new lows - This seemed to be one positive point in an otherwise sh1tty market sell-off.

Seeing a 50 pip up move move when the whole market is falling is fishy - especially if the sp500 finds it hard to pull itself off the floor just as quickly - the correlations were not there last night.

This could most likely be intervention in the markets - the timing of the move was about 30 minutes before the euro market close - which could be the 'put' that we are not seeing in the markets - we may continue to see this intervention occuring over the next weeks as markets try to remain less volatile in a jittery sentiments.

Given how far we've sold off, and there is liquidity still being pumped into global markets, the bets are again lining up for v. high risk-on trades.

I've added to 2 longs eur/usd and 2 long aud/usd contracts.