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Buy The Rumor Sell The Fact.

One of the long-lost old wives trades in the business. When I first started trading on a desk many moons ago we had a trader who only had this system. He did rather well. He would pick a stock that was doing the rounds in the rumor mill. As soon as a stock was recommended by one of the punters he would be out. He did better than most of the Quanta , with their fancy algorithms.

This is exactly what has been happening with the Euro in the past few days. On Friday rumors of a resolution in the Greek debt dilemma drove the Euro to a phenomenal spike. Today it lost most of it. However, don't get too excited by this Greek deal. It leaves more questions unanswered and Europe doesn't want to really deal with the structural problems behind debt.

So now the ball moves to the US. One more month of fiscal cliff. The Mayans really new what they were talking about. December 22 is clearly the end of the world. If the US can not sort out this mess, downgrades will swiftly follow.

Greek Debt Deal Explained

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.