Today's chart of the day shows speculator positioning on the Euro Dollar exchange rate by the CFTC Commitment of Traders report released yesterday. As we can see, the overall net short position has now hit a new record high of -127,879 net shorts. On top of that Small Trader position is also net short at -28,748, which means Commercial position total of 156,627 net longs - which is also a new record.
The outlook on Europe, Euro and PIIGS is so negative now, that every single man and his dog on CNBC or Bloomberg believe things will only get worse as of next year. Well, quite to the contrary, I took a bet with my best friend over a bottle of Dom Perignon, that the Euro will not go to parity like majority of clowns on CNBC believe and instead we will make a new high above $1.49 in the up and coming rally in 2012!
What do you say? Do I have a chance?