In case you haven’t read the funny pages this weekend, there’s all kinds of Greek drama going on. Basically the ECB has cut off Greece’s air supply until they figure this all out for the 400th time. As a result, Greek banks and their stock market will be closed tomorrow. I have read that both may stay closed until July 5.
Capital controls that limit people’s ability to withdraw and move money out of the country are, it is safe to say, not a sign of a healthy situation by any stretch.
I can’t imagine that global markets will receive this well, as uncertainty is always the greatest enemy of the market. Especially a slow summer market that can be moved around easily on light volume.
These next few days are shaping up to become a transformational moment in the 60-year project of building a unified Europe. We just don’t yet know what sort of transformation it will be.
I will still maintain that this will still all work out in some form or another and if the market dips down hard it will be the best thing for us to get positioned at better prices for the rally that always follows. This time will be know different.
Anyway, last week was a lemon and it was a tough market, probably the worst I’ve traded in a while. Some stops got it and there were false breakouts. When a stock like CORT triggers, run 10% then fails and stops, well, not healthy behavior and I saw that a lot last week. If you took the trade good for you.
Right now at about 7 PM est, S&P futures are down around 32 points or 1.5%.
I think we’ll get a great dip to buy at some point this week which will set us up a fabulous July.
See you in the morning.