$EURUSD Breaking Out – Higher We Go

As I’m sitting here, watching my television screen, I find myself overcome with a most serious dilemma – why the hell do I know the name of a Senate candidate from Missouri?

The answer, which comes to me before I can even articulate the question is, “because, this somehow helps Democrats.”

That’s where we’ve come as a country. First, they moved in to pin it on the GOP. Then, the GOP immediately repudiated the comments. Romney led the charge. So now they can’t make it an issue about Romney. So it’s an issue about the people who might be on Romney’s “side”.

“Well! Mister Romney…maybe your problem is the things other people say who aren’t you. You know, those we can’t quite openly identify since you and most of your supporters and GOP party leaders are bucking Akin – but! we know they’re out there…”

Thanks assholes. Hey, you know what? Maybe Rangel is a Democrat so that makes Obama a thieving, corrupt bastard. And maybe Blagojevich makes the whole left guilty of trying to sell a Senate seat.

Two words: Joe Biden.

If that doesn’t sound fair, it’s because it isn’t. I mean, at least Obama had dealings with these three – who the fuck is Akin?

Why the fuck are we talking about this guy? And more importantly, how low has this whole process sunk that suddenly Romney’s record is apparently hinged on the words of an individual he has no control over, and who he has openly denounced? I just got to read a bullshit piece by some idiot in the local Freep newspaper – “An American Woman” – lecturing a Romney candidacy for their horrible ignorance towards women…uhm, manifesting in forms they have no power or responsibility for.

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Alright, enough politics for today. As aften as I broach the subject, feel comforted in knowing that I hate it as much as you.

In the markets, I’m struck by the move in the $EURUSD. We are now at $1.25+. This move should give further steam to the relief rally underway. I’m guessing the $EURUSD will top out somewhere around $1.28 (purely a guess), giving us another month of upside or so. If that connects with the holiday, we could run into the new year again. But I’m playing defensive.

I’m ambivolent towards the effect something like an election can have on the stock market. Though people wish to believe otherwise, this election has absolutely nothing major in play in terms of business conditions.

If Obama wins, we continue onward. If Romney wins, he doesn’t have the foundation to move forward with any major changes. You get some relief as Romney starts letting the hatchet fly in these freelance agencies (thank God) but not much else.

However, ultimately the $EURUSD move is going to fail. It’s just a matter of when. There’s speculation of a Greek exit from the EU again – but we’ve been here before. Cans will be kicked to stave off a 2012 collapse. The question is, will the issue resurfacing cause the euro to implode again BEFORE next year?

The $EURUSD is still going to parity.

The necessary allocations are all long, but with a large defensive cash position to take advantage of dollar strength when it resumes. Do not fear things named as gayly as “Fiscal Cliff”‘s. While I am looking for the next downstroke to come around the same time, this is Europe’s part to play. The US gets to destroy the world later.

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