Risk Aversion Starts Holiday-Shortened Week, New Premium Trades

Traders gauging the impact of the US SuperCommittee's announcement that it has failed to agreement for savings measures ahead of Wednesday's deadline. Conservatives trounce

the Socialists in Spain Elections. Added silver and oil to Friday's trades, which include ES. AT 9 am GMT, Eurozone Sept current account is exp after Augusts EUR 6.3 bln.

Moodys reiterated its negative outlook on Ireland's banking system, placed since 2008, based on continued weakness in banks' funding and liquidity profiles; persistent weakness in profitability and that the improved capital positions of Irish banks only partly mitigate these fundamental weaknesses.

Intermarket Insights have just added SILVER & US CRUDE to Fridays trades, as well as commentary accompanying those charts on S&P500 and US crude oil. One of the gold shorts has hit all targets, while one of the DUAL ES trades is has been triggered. See here for more detail: http://ashraflaidi.com/products/sub01/access/?a=553, For a 1-week Subscription, click here: http://ashraflaidi.com/products/sub01/

CFTC COT report

Speculators at the CME are holding a $10.1B net long position in USD, up from $6.2 a week earlier. The change was almost entirely due to a climb in EUR shorts to -76.1K from -54.3K. Sterling shorts increased to -32.8K from -29.1K. CAD shorts increased to -17K from -15K. AUD remains in a net long position but it was trimmed to 24.3K from 27.0K.

The long currency to make headway against the USD was the yen as the net long expanded to 33.7K from 28.0K. Surely the BOJ is keeping an eye on these numbers, they last intervened with net yen longs at 45K. The numbers cover through the close on Tuesday.