Huge Euro Volatility

Here's what a 15 minute chart of the Euro looks like for this week.

A Huge parabolic move, you can see that it really took off after Wednesday's Portuguese bond auction and continues today after the Spanish auction. It was just last week we were trading under $1.30!

 And here's the Euro's resistance level to keep an eye on.

UUP has support at the bottom of this big flag.

One of the first places to look is the multinationals...

Here's KO

We looked at KO, but didn't take a position in it, as you can see the Euro higher has KO outperforming the market today.

The multinational trade we picked, MCD (short) on 1/6/2011 @ $77.66 is doing great today.

 Above is the Trend Channel stop for MCD, although I prefer this as a trending position.

 Here's the trend trade position stop. Either way, the trade is at a profit and I expect to see more gains in the weeks ahead.

The CRB Commodity Index has performed on the back of a weaker dollar, but it's loosing steam, this hints that there may be a lack of buying risk as the euro heads toward resistance which is close by.

USO- similar story.

 USO 15 minute, showing a very positive divergence and right around the time that insiders would have known about the ECB's bond purchasing ahead of the Portuguese and Spanish auctions.

Not much help to SLV though and supports my view that the recent bounce in Silver was nothing more then a bounce.

SLV 15 minute showing a negative divergence as it attempts to break $29 (which recently had been a resistance level for SLV). Remember the 15 min chart is excellent to show swings such as the end of a bounce.

 GLD resistance-note lower volume on the bounce as buyers back away from higher prices.

Today's opening gap attempt to hold above resistance met with a 5 min 3C negative divergence.