Friday, July 16, 2010
Hedge Funds Getting Squeezed?
A lot of hedge funds were short the euro. I am not sure how many got out of their positions but it was the most popular position for the past few months. I am sure there are many now questioning their decision to short the euro but euro bashing is still not out of style. The ridiculous calls for euro-dollar parity are still out there. This just goes to show you that you can never put too much trust in one fiat currency over another. They are all shaky.
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4 comments:
I am surprised you are not shorting. Are you expecting a pop? I was hoping for one to sell into but it doesn't look like its happening.
I actually have started a small short position in the overnight market. If we get back near the overnight highs, I will add more short.
A breakout of the recent range would suck in the chasers and then we would likely get a meatier correction. That is what I was hoping for.
It is tricky to trade countertrend which is why I've been treading carefully on the short side. Because I do think over the next 3 weeks, we'll be grinding higher.
But yesterday's buying at the close seems pretty climactic after all the good news.
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