The CurrencyShares Euro Trust (FXE) is going down now because they are printing euros through this lending program by the tens of billions of dollars. I think the ECB has decided that there really isn't any private money that is going to go into these banks except at a cost like that Unicredit paid this morning.
So they have gone all crony and decided to just flood the Continent with euros to bail out banks until the sovereigns have committed themselves to successful austerity programs. The corrupt bargain -- we will give you money if you buy our sovereign debt -- is alive and well and making it so the euro is going lower, but the economy might grow, which makes all sorts of sense when you think about it. Plus, you have to believe that the Europeans are ready to cut rates again to join the U.S. in ultra-low short-rates.
So, it isn't so much a de-coupling of the U.S. and the FXE but the idea that reflating will hurt the euro, boost gold and take a Great Depression off the table.
Otherwise, we would be hammered. Anything that promotes growth and puts off what may turn out to be not inevitable is good for our stock market, even if the FXE trades down.
And that's where we are right now.