Ibex minus twice the Dax vs EURUSD....continuation of the start of a new era or interesting entry levels to buy USD vs Euro. Needless to say the Bund/peripherals charts would support that trade...Of course the german economy is much petter positioned to withstand a curreny induced shock but how much longer can a politically and economically fragile country such as the PIIGS absorb the negative effects of a stronger EURO. We don´t know and the Central Bank has probably no clue either so the market makes the decision. So further to the abovementioned trade the choices here are buying Ibex vs Dax or maybe even an outright short on the dax, maybe a combination of both for those notorious equity bears out there. The underperformance this morning in spanish equities is probably based on the BBVA rumours which are unfounded as we have learned but the structural problems prevail. Food for thought and plenty of trades for everybody. Good luck.....
No comments:
Post a Comment