Traders are tracking the EURO and they make their buy and sell calls based on it. Both charts have been moving in tandem since the trillion dollar bailout plan was revealed.
Traders are punishing long holders. They are shorting the EURO, the US Stock market and everything else that fears.
The reversal pattern looks somewhat the same. Hopefully, it is a reversal pattern.
Investors are afraid that the EURO problems translate into lower growth. This is because the EURO is going to hurt China’s export, and cause inflation in Europe.
This is a bet that one must take. The market might head higher, it may also go down. however, it is worth noting that the TARP bailout helped the DOW to rally, the EURO bailout might do the same.
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