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Last week, I recommended just dumping the euro, and it worked well.
It's still a good plan.
Last time I was on "Squawk on the Street," I said just dump the EUR/USD and that trade worked well. Again, this is not a time to be sophisticated. I provided levels, but said you had to just pick a level you were comfortable with and sell the EUR even at those new lows.
On Tuesday, the EUR/USD put in another new low at 1.2465 and today is putting in another new low at 1.2420. When currencies are putting in lower lows, they are indicating a strong trend that you want to follow until proven wrong.
The Grexit continues to drive down the currency and has infected Spain .
In a strong downtrend, all of the news is interpreted as negative and has a negative impact to the currency.
The good news is ignored and the currency at best stays stable. (Even a rally in Risk yesterday when US stocks went up, the EUR puts in new lows.) The EUR drops despite all-time highs in EUR shorts according to CFTC data .
Yes, there is a risk for a big snap back, but that will likely be used as an entry point for new shorts.
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