While the markets continue to recover from this morning, there is one thing that bodes as ominous. The euro is getting absolutely killed against the dollar. That may explain why the market continues only to break even and seems to lack the gusto, thus far, to actually break out.
That would imply the market is presently working as hard as it can to just hold the tempo. However, if the euro continues to collapse, then I am going to look like an idiot (I covered about half of my UCO short this morning) as the indexes, commodities, and pretty much everything else plummet.
Just recollect that I still hold a sizable short of UCO, before getting too smug with me. I still like the chances for a rally, but those chances are currency-status-permitting.
As for other business; I will be shorting MGM on all available bounces. People are now reporting that Macau was being buoyed by loose lending standards to rich Chinese. I’ve heard those rumors before, and the implications are serious: if the loans dry up, so does the Macau market.
That would deal instant death to MGM. They cannot afford to lose any of their revenue.
MGM to $0.00.
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It’s intense and an idiot is losing lots, not covering too soon.
True story.