What lasts longer, the euro breakout, or the NY prison break?
I love a good prison break. I don't know why -- these are obviously people who need to be in jail -- but something about men escaping from a maximum security prison speaks to the human spirit. It's impressive because it's so hard to do.
At this point, I'm sure you've heard the story. Two men serving life sentences for murder in upstate New York escaped on the weekend and police seem to be befuddled despite a military-grade manhunt.
Even in a prison break, there are lessons for traders.
It's a reminder that nothing -- not even prisoners -- can be held down forever. Even something like euro (or even the yen), which has been in the market equivalent of jail all year, has bounced.
A counter-trend squeeze is like a prison break. You don't know when it's coming. You also don't know how long it will last. The euro has held out for about a month and the yen is up for the second day after hitting 13-year lows.
Once in awhile someone escapes prison and is never caught but they're usually caught. Bet on the trend.