Well, thank goodness that’s settled.

Tuesday night, stock index futures were trading sharply lower because Greece was running out of money… again.

Little Papandreou got on the phone and called Papa Sarkozy and Mama Merkel from his dorm room and pleaded for more money. Nobody knows for sure exactly what was said, because the three speak three different languages.

[ad#Google Adsense 336×280-IA]But based on a statement released by Reuters just after the call ended, Mama and Papa agreed to send more money. Papandreou agreed not to blow the cash on pizza and beer and promised he’d try to get straight As next semester.

Global stock markets rallied on the news. Gold slumped. And the euro gained almost 1% versus the dollar.

At first glance, it looks like another happy ending to another wonderful story… But it’s not. In the real world, financial catastrophes don’t always turn out happily ever after. While the currency markets cheered the news that Greece would be saved again, we haven’t closed the book on this fable.

Take a look at this chart of the euro…

The euro broke down from a several-month-long consolidating-triangle pattern. The MACD momentum indicator has been declining for the entire move, and there is no positive divergence. So the momentum behind the decline is strong… and it’s unlikely to reverse before falling even further.

[Wednesday’s] bounce in the euro is a short-term reaction that relieves the slightly oversold condition brought about by the sharp decline over the past month. It is not the start of a resurgent rally for the currency.

The euro is toast. We laid out the reasons for its destruction here and here. Any short-term bounce in the currency is an opportunity for aggressive traders to go short. The euro is ultimately headed much lower.

Best regards and good trading,

— Jeff Clark

[Daily Trade Alert note: Last month Alexander Green told us about a way to bet against the euro that is “far superior” to futures or options. It’s through an exchange-traded note called the Market Vectors Double Short Euro ETN (NYSE: DRR). As Alexander explained, this fund is double short the euro. So if the euro falls 15%, the fund should appreciate approximately 30%. To learn more, read “How to Profit from the Collapse of the Euro.”]

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Source:  The Growth Stock Wire