Top Stories, the Fed and Merkle

The setup for the long S&P short Gold trade got some more traction in the last 24 hours as Merkle maintains an anti-inflation stance for Europe and the Fed minutes went into “the happy talk phase” which encourages some observers to believe that QE3 is on the table.  I think not with Gingrich now in the Republican lead.  Obama will have his hands full fighting the smooth one from Georgia and the Fed is not going to touch funny money again.

As such we are adding to our long S&P short Gold trade this morning by taking it to a 1:1 ratio.