• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 3 hours Waste-to-Energy Chugging Along
  • 1 hour U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 5 hours Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 1 hour Let's Just Block the Sun, Shall We?
  • 10 hours Venezuela continues to sink in misery
  • 11 hours Regular Gas dropped to $2.21 per gallon today
  • 9 hours Zohr Giant Gas Field Increases Production Six-Fold
  • 8 hours No, The U.S. Is Not A Net Exporter Of Crude Oil
  • 4 hours UK Power and loss of power stations
  • 2 hours What will the future hold for nations dependent on high oil prices.
  • 19 hours $867 billion farm bill passed
  • 20 hours Air-to-Fuels Energy and Cost Calculation
  • 17 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 5 hours EPA To Roll Back Carbon Rule On New Coal Plants
Alt Text

Yieldcos Are Back And Better Than Ever

Yieldcos have had a rocky…

Alt Text

The Best Places In The World To Mine Bitcoin

As Chinese bitcoin miners face…

Alt Text

Venezuela Takes Unprecedented Action To Stabilize Currency

Venezuelan President Nicolas Maduro has…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Trending Discussions

The Easy Money on the Euro Has Been Made

I have been a conspicuous bear on the euro (FXE) all year, back when it was trading at $1.45. We have now hit my target of the low $1.20's, and the really easy money has been made. Overshoot territory now beckons.

It seems the entire world, having passionately loved the European currency only six months ago, now despises it like a cheating boyfriend. There is nothing worse than a trader scorned.

Not a day goes by without hearing about emerging market central banks dumping euro reserves, panic buying of gold coins in Germany, learned university professors explaining why the EC was too big to ever work, or France threatening to pull out imminently.

Even the esteemed Economist magazine, my former employer, has its "Big Mac" index of purchasing power parity for the euro at 1:1 against Uncle Buck.

A trillion dollar bailout measure came and went, like yesterday's newspapers.

At this stage I think the prudent trader will start tightening up his stops on short Euro positions. The risk of a snap back is growing by the day. Europe is increasingly desperate to get the crisis under control, and eventually they will succeed.

When cornered, never underestimate a government's ability to change the rules. I have seen this happen dozens of times over the last four decades. Capital controls can't be far off.

The scary thing is, as Ian Bremmer pointed out in his interview on Hedge Fund Radio a few days ago, this could take five years to play out.

In the meantime, I'm going to hire Gisele Bündchen as my head currency trader. She is the super model who demanded to be paid in Euros when it hit $1.60. I'll simply take her advice and run like hell to do the opposite in the market. And who knows? She may have some free time after work. ?.

Euro

Courtesy of: Mad Hedge Fund Trader




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News