Monday, April 21, 2008


I was surfing some charts recently and one that caught my eye was the Dow Jones Euro Stoxx 50 etf ticker FEZ. I did some further digging and lo and behold, something a little more liquid.

The chart above is a daily view of the MSCI EAFE Index ishares. (ticker EFA). We have had a 3month counter trend rally. Correction if you will right into the proverbial "box". The 200day moving average sits just above here at 76.42. I remain convinced the credit crisis is NOT over, by a long shot. It is global in scope and the powers and pundits that be can wish, hope, manipulate and pray yet nothing can get this genie back in the bottle. As regular readers know I am fond of the proshares as a vehicle. This is no exception. The corresponding ultrashort proshares for the MSCI EAFE is shown below (ticker EFU)

The washout looks to be complete. I would rather be late than early but deep down I am scared of missing this train. I am currently on DEFCON 1 regarding EFU. A rally into the 76.50-75 area will more than likely compel me to act. As usual I will post if and when I do.

Good Speculating to you all.

Open Positions:

Long 6 units Currencyshares Japanese Yen ticker FXY @ $88.55 stop at $91.40
Long 2 units US Gasoline Fund ticker UGA @ $51.25 stop at $51.74

Long 1 unit Allis-Chalmers ticker ALY @ $14.45 stop at $12.64

Long 1 unit Frontier Oil ticker FTO @ $27.90 stop at $24.64

Short 2 units Daimler AG ticker DAI @ $86.20 stops at $84.20/$82.20

Short 1 unit Darden ticker DRI @ $35.05 stop at $37.18

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