Gold and Euro

We had huge moves in gold and euro today. The only way I can interpret this is hedge fund liquidation. Crude oil also took a big hit. It seems like the hedgies were hiding out in gold, crude oil, and short euro. As far as the effect on stocks, I remain short term bullish because despite a weaker stock market, the euro got stronger and gold got weaker. These are signals that the de-risking trade is near exhaustion.

After we get past this much feared nonfarm payrolls report, the bearish catalysts will have to be even more bearish because of how much expectations have been lowered. I expect a weak number tomorrow but I don't think we'll sell off much on it.