Last Hurrah of the Big Guy Trade
The trade that is the darling of the big guys, long gold/short euro is being pushed to a breakaway point as the news flow in spite of solid political moves in Europe this week is being pushed as a Euro credit meltdown. Is it that true really, or are the big guys pushing the news scenario? The dollar is benefiting and US stocks are catching selling in this grandstand move. This is a day that has history potential.
Good news in the US however. As Ohio goes, so goes the country in politics and the referendum vote that went against the Tea Party Conservative Agenda illustrates what I have been talking about the past few days. The middle class has the power to take over the agenda from Washington and the do nothing Conservatives.
Update at 9:30 AM CST: One hour into the regular trading session and we have seen gold/euro high at 1323 and at 1317 at the moment. Trades under 1289 for an hour would be the signal that this trade is imploding. In the meantime we are short gold in dollar terms and have been long dollar since the start of its bottom in May of this year.