ETF CORNER

FXE : When will the Euro stop rising ?

The rising Euro/Usd is a concern ! When the Euro rises,Oil rises and Gold rises. The US consumer must pay higher energy prices and his purchasing power abroad melts like ice cream under the sun in the Saharan desert !! I made a post yesterday about a possibility of another higher leg in USO. A break of the Euro above $1.49 could trigger another rally in Oil prices and USO could reach $45 ,while the Euro could rally up to $1.53 (green scenario) ! On the other hand if the Euro fails to break above $1.49 this week,then the rally in USO will be in jeopardy, as well as the rally in stocks (blue scenario) !  The Euro holds the key here !! My main target for S&P 500 is 1125... maybe another rally in Euro and USO could help SPY get to $112.5 !

Related ETF's

EUO : Double Short Euro ; ULE : Double long Euro ; FXE : Long Euro

EDZ & EUO : Lost in the battle !!

I am stopped out of EDZ (1% of portfolio) and EUO (2% of portfolio) . These are the first two casualties of getting on the short side a bit too early. That was a risk I was willing to take ! May their soul rest in peace ! Here is a video dedicated especially for them :

EUO : Shorting the Euro ! Bought EUO @ $19.18 Stop Loss $18

I am shorting the EUR/USD at these levels. I have bought some EUO (FXE double short) and looking for this scenario in the near term.

The ice is getting thinner !!

Now that the three main US indicies have rallied massively throughout the last few months,it comes as no urprise that the ice is getting thinner !

The four ETF that i have under the radar screen are crucial as they will determine the direction of the broader US market . They are getting close to their support levels ! The tinted red areas on the 4 charts show the "margin of safety" ! If DBC(commodities),USO(Oil),FXE(Euro) and GLD(Gold) break their respective support lines (which they will do simultanously), then the markets are in for  new major downleg. If the support lines do hold, then there could be a final push higher before the big plunge ! In both cases there will be a be a big plunge .. it's only a question of when ! The support lines will be breached !

I've added on the charts the following symbols if you wish to play the bounce, or the breakdown !

GLD: DZZ(Double short GLD); DGP (Double long GLD)

 USO : DTO(Double short USO); DXO(Double long USO)

 FXE: EUO(Double short FXE); ULE(Double long FXE)

 DBC: CMD(Double short DBC); UCD(Double long DBC)