I'm long the Euro/Yen cross at 109.50. This after a substantial sell-off in the markets. A sell-off, I will point out, that was not met with enough hair-raising put buying to vault the VIX to a meaningful "fear" level. This trade is contrarian in many ways. Everyone doubts QE 2.0 will save the universe, but they don't know what they're up against. You see, the financial well-being of civilization is no small matter. Sell-offs will be dealt with in due course. Everyone also knows that Europe is operating under an illusion of financial health, but what they don't realize is that it doesn't matter. German workers will "carry" the load, unlike an aging Japanese demographic.
Besides, the U.S. equities have gotten oversold. And the EUR/JPY cross is a nice proxy trade for simply going long ES futures, because how boring is that?
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