Friday, July 2, 2010

Euro Squeeze and Jobs

The euro is relentless squeezing the shorts. These are big moves in the FX market. Hedge funds have to be hurting here and contrary to what everyone says about the carry trade, long US stocks, long gold, short European stocks and short euro is still a popular trade. That trade has been a disaster for the past month. Hedge fund liquidation is still on the table for today due to euro strength.

As expected, the jobs number was fudged higher, I guess they didn't fudge it more otherwise they would fear losing credibility. I think we will go lower later today. I will close out my long near the open.

2 comments:

Petsamo said...

You have a downside target? I heard 980 by Tuesday. Others are saying 950.

Market Owl said...

No downside target. I think we will selloff mid day.