2015.02.03 Short summary

Greece came to senses. Or maybe they had this plan all along, but firstly they tried to scare Eurozone before showing the real “hand”. Greece could be a major trouble even in political votes like more sanctions against Russia.

What they are offering are:

1) Growth Bonds, which would be linked to Greece’s nominal economic growth. They would replace some of the debt held by European partners, who would only be paid if the Greek economy was growing.

2) Perpetual Bonds, to replace the debt currently held by the European Central Bank.

Long USD, Short oil, Long gold, Short euro, Long bonds – all of them are taking a pounding today and the market is puking. Short squeezes can be a nasty piece of business. There is no great rule of trading a squeeze. It’s hard to tell when it will end.


“There seems to be lot of short covering on the hopes that the huge cut in US rig counts is leading to shale output being reduced to decrease the surplus overhanging the market,”.


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