The markets take the euro zone to the brink of collapse. Asset prices plunge. As they peer over the edge of the abyss, the leaders of the euro zone and the European Central Bank take fright, and come up with whatever is necessary to keep the system from collapsing.
The can gets kicked down the road — until the whole crisis blows up again in a few months’ time. It’s happened a couple of time already and it’s about to happen again."
If you think the euro boys can put together a few more kicks, or “tricks,” then you can prepare to sell the next successful can kick. Then, when the euro world is about to end, and it looks like Frau Merkel will never say yes again, go the other way.
If you are nimble, this might be a busy, active Summer,
Remember not all your money goes in one trade. A weak euro is probably a great time to buy German, Dutch or French retailing companies which will benefit immensely from the weak euro.
In nervous volatile markets you need to mind your money. Not all trades will be winners, so just don’t take it personally when you occasionally get entangled on the wrong side of the market.
