Buying Euro

Market won't react positively because it doesn't think the EZ can mount a unified response to the crisis. And the market is right, the EZ can't (or isn't willing to).
 
But I don't think the EU needs to respond in a "totality of solidarity" like in the US. There is not the political support for such socialist behaviour anyway - people in richer countries would be outraged. Actually, I would argue that the heterogeneous nature of the EU is more healthy, and the composition of economies provides positive feedback mechanisms with regards to adapting each component - and not a total system failure like in the US. Politics of better regions serves as stimulants to the underperforming regions, and thus they spur faster evolution and stronger trust in the system - by more inherent scepticism and re-evaluations, tougher negotiations.

In short - the EU is more democratically founded, while the US is more totalitarian, authoritarian in their economic policy interventions.
Diversification is king against systemic risk and strong volatility effects - so EU trust should be better than US trust.
 
Philip Coggan just made the same point as me on CNNI 5 minutes ago...
The EU does have the ECB; but no "European treasury", Henry Paulson, SEC etc.
http://www.ft.com/comment/columnists/philipcoggan (with FT for 20 years)
http://www.economist.com/finance/displaystory.cfm?story_id=8173846 (2006 Investment Journalist of the Year)
http://www.economist.com/mediadirectory/listing.cfm?journalistID=121

Inherent risk to the EU is much less than the US, because of better integrity of the EU - more diversity and trust founded on stronger democratic processes - not so totally polarized like in the US.
 
I leveraged my trade another 50% yesterday when EURUSD dipped, but that is just short term for the run into the 1.37s and 1.38 testing. Scalping on EURJPY too... 30min bars on EURUSD and and 5min/30min bars on EURJPY are good for trading today.
:)

Think I'll stop that extra leveraged at around 1.3750 for +85 pips, closely monitoring that trade now.

EURJPY is leading the EURUSD - but very interesting counteractions tight now ... USDJPY seems erratic, not good - the leader and emphasis is on EUR appreciation.
 
Tempting to trail the extra leveraged EURUSD trade above 1.3750 - but it seems like psychological levels are playing part as well. And fast 1.38s means that 1.40s will follow fast as well.
 
EURJPY below 136 looks attractive, but will see how it plays the volatility - probably many stops getting run right now.
Good scalping market conditions there now.

update:
Close to 135.50 seems very good for bounce...
 
My EURJPY bounce is under way - and stop loss of € +5,000 profits is guaranteed - will trail it now...
Targetting roughly 137.50 ... but will see how it goes.

update: extra (doubled) leverage on dip below 137 again... 138 target for that one - will hold the 137.50 for the former one.
Short stop updating now .. trailing somewhat more.
 
Finally .. hehe, € +14,000 on that one...
:D

Still one with sights for 138 ... but must trail stronger now...
update: oops, that got stopped - but still € +3,000 :)

OK, will watch US markets now ... let it all sink in, and get the adrenaline out...

I was on the 5min and 1min bars on the end for the EURJPY ... but 15min or longer looks more calm - I probably got a little too excited with that last scalp... but hindsight is always 20/20.

update2: well, the USDJPY is acting out now after going through 100 again... but haven't followed that one... EURUSD is becoming weird on 5min or shorter than 30min bars - contracted. My long there is still for the 1.40s and hopefully 1.45 ...

Hmm, calling it quits for scalping today.. better get some food etc. € +32,000 in scalping and still two trades going.
The one from 1.3478 is now € +31,500 ... but going for the 1.40s :)


Seems like a lot of conflicting views in the EURUSD and USDJPY right now --- i.e investors re-evaluating USD.
So, watch out for really big moves...
 
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