Wednesday, December 14, 2011

Huge EUR/USD Decline

Yes, there have been three days of equity selling to go along with the EUR/USD collapse, but there has not been as much equity selling as we would expect.

In that case:

1. Expect more US equity selling.
2. Realize that if the EUR/USD goes way down and equities only go somewhat down, then the difference is taken up by the purchase-of-puts. That puchase forces the ratio down and can bypass (temporarily) the forced selling of equities.
3. The volume today moved from US equities to Forex. This is weird and keep watching!
4. There are plenty of ways to grow massive wealth through insti mistakes.