Trade!

Just bought 5% position in ULE (Ultra Euro) @ $27.05.

Everyone and their mother knows about Greece's budget woes. People who couldn't find Greece on a globe wax poetic about how Greece hid debt off balance sheet through complex swaps with Goldman Sachs. Hedge fund managers hold "Secret" dinners to discuss shorting the Euro. Papandreou crieds for help daily. Angela Merkel scowls and denies bailout rumors daily. It's a little too staged. The fundamentals say the euro is way oversold. Short interest on the Euro is near record highs, and is just now starting to wane. This means the big boys are looking to exit.

Why trade today? Because my scenario of a back-door bailout is looking clearer. The first step was taken today. Greece auctioned off $10 billion in bonds at 6.3%. The issue was five times oversubscribed, which means that the institutional money understands what's going on. This should give the Euro a nice kick in the pants.