My shorts are absolutely loving this market. In spite of the EUR breakout, I shorted a bunch of gold and energy stocks. The ES is right at the razor's edge.

I've also increased my FAZ position, which is behaving marvelously.

This is a really substantial breakout. It could have big implications for energy, equities, and gold in the coming weeks. The push above 1.33 has been long-awaited, and now it's finally real.

Just to temper things, I will say the last time we had a breakout was around September 22nd, and that actually presaged the big plunge across the board. One difference, I think, is that the pattern is far better-formed (and longer-term) than then one in September.

Just thought I'd show you something I'm working on; it's a dialog box that makes entering retracement levels nice and easy. This is a dialog box I am confident some of you will welcome with open arms!

As you know, I follow EUR/USD closely, and I'm noticing something strange.

The EUR/USD is shaping up terribly bullishly. I mean, just look at this pattern:

That is a thing of beauty! At the same time, look at ES:

Something is out of whack here. Is the ES going to "wake up" and start behaving bullishly soon, or is the EUR ahead of itself?

I'm kicking myself for not holding on to my DIG and GDX, because not only did they do well again on Wednesday, but the EUR action indicates they will continue to do quite well. I'll be on the hunt for good energy plays this evening. I just wanted to point out the curious disparity between how those two important instruments are behaving late this night.