The Trade? Short Euro, Long Gold

The circus continues in Europe.  No big bazooka EFSF coming out of G20 to put a firewall around Greece and save Italy.   Greece is a sideshow and the Italy-Germany bond spread is what you need to watch as an indicator of the short-term direction of the risk markets.  Clearly, at least to us,  risk wants to run into year-end but fear of the EU macro bear is palpable and reflected in the elevated VIX even on big up days.