At the end of the day yesterday, my biggest long was FXE (the Euro/USD) and my biggest short was GLD (errr – if I have to tell you – gold). This may seem like a pair of trades guaranteed to cancel each other out, but so far this isn't the case.
The Euro zoomed higher this morning, thanks, I suppose, to the more-or-less successful sale of Portugal bonds. Precious metals and the Euro are typically joined at the hip, but instead of zooming higher alongside FXE, my GLD short slipped lower. As I am typing this, the EUR/USD is up 0.4% and GLD is down 0.24%. Quite a contrast!
My stop-loss on GLD is 135.17, and a break below 132.86 would, I think, really start pushing things downward. This is an intraday chart:
