soveriegn risk trade is on,

Looks like the new Soveriegn Risk Trade is now firmly established.

Just heard the new slogan, the PIGS are the problem
Portigal
Ireland
Greece
Spain

This risk is spiking the dollar and as a result Gold has taken a large intra day pounding.

Not sure how far this new trade will go but alot of Hedge Funds have discovered it and as a result the long awaited test of 1034 and quite possibly $1000 is probably coming in the near term.

AUD POG has not fallen nearly as much at present but that is not going to help NCM. Copper and other commodities are also being smashed.

Near term trade could take the SP to 30 at which level there should be solid support for a time as long as POG doesnt move to much lower. Global equity selloff underway.

Certainly not for the faint hearted but not the end of the world if your caught...bound to overshoot to the downside and my plan is to wait for the first follar rebound and a rebound in POG before getting back in. Buy a rising share and leave the first dollar increase to the super pros / super fast....

A bounce back to normality may come after the employment data out of the USA on Friday but I can actaully make my mind up what will happen if the data is good,,,,could spike the dollar stronger as the USA is now seen as a better alternative than the PIGS, this may be the time of the big test but trust that the media will then highlight the faxt that the USSA is actuallt still having massive defecits, money printing etc.

Dow currently down 212 which is not the end of the world.