What's the opposite of a freak out? I am trying to figure out what that is because if the CurrencyShares Euro Trust (FXE) were down $1.26 we would have a freak out of incredible proportions. But when you have a rally of a $1.26 it's nothing. It doesn't even hit the radar screen.
So, the question we have to ask if whether this is a double standard or the fact is that the FXE going up is not news and it going down is.
To me, it's a clear case of a double standard. Here's why. It's frankly business as usual to see the euro DOWN! We just expect it. The gamut of views on the euro runs like this: it is either going to be obliterated by a break up of the EU or it is going to be printed like mad in order to debase the currency to give European companies an advantage on the world stage.
Frankly, I can't think of a third option that was on the radar screen, the option that says the FXE is going higher. Only our own Tim Collins flagged this move to me and it is incredible to see this dramatic move being made.
To me this should be THE news story of the hour AFTER we get rid of the outrage over the darned Facebook (FB) insider sale.
How important could this move up be? First, we have tons of American companies, particularly the packaged goods companies, that had to slice numbers and slice them hard because of the euro. Same with a lot of tech, like Tech Data (TECD) this very morning. A stronger dollar also means that the big international banks can reposition themselves by selling assets over there without a firesale.
No matter. The fact is, this FXE move is a tree rising in the woods.
Just wrong, but it's the way it is.