The S&P futures break below all recent lows.

Trader Art S&P Break of the Lows

News of German regulator intervention is fuel for the fire of my short euro thesis. A view of the weekly chart shows that support is broken. And it’s a long way down.

Trader Art: Euro Weekly

In today’s edition of Blast from the Past, I draw your attention to Professor Robert Mundell’s comments on the euro nearly one year ago.

Meanwhile, back at the factory, the accounts are repositioned and the only stocks we own are gold and silver names. We also own various calls on gold and silver and a fair amount of puts on the euro.

I previously wrote of the S&P 500 holding to it’s pattern of higher lows. Stocks have recovered off their lows, but have come upon resistance, which at one time was support. Given this picture, I am looking to short the S&P rather than be long it.

Trader Art - Support Becomes Resistance Oil on Canvas

Greece

Remember this about Greece: they cannot be bailed out by borrowing more. You cannot borrow your way out of too much borrowing. It does not work. Once debt levels reach a tipping point, there is no way out except default. Which is what Greece will be forced to do through a forced restructuring.

Big Trade

Given the crosscurrents, we are looking at a trade that could be bigger than the crash of 2008.

Hold on. The big trades are always full of twists and turns.

Chalk one up to the minus side. Attempting to fade the existing downtrend in A Power Energy (APWR), I went long. I have now sold my stake, as the price action hit my determined lower limit.

Trader Art: APWR Stop Oil on Canvas