Isn’t it interesting how the exercise of democracy in the very cradle of democracy has the Eurozone scrambling? No doubt the Troika wishes they could just turn back the clock, go back to the days of dictating economic austerity to member states. But, central planning/banking has its limitations, and the Greek people have proven that citizens can, indeed, be pushed too far.
In other news, the Baltic Dry Index reached its lowest level ever today. For those unfamiliar, it’s a measure of the price of moving raw materials by sea and an accurate reflection of global trade.
Friday’s shiny new unemployment report, which sent stocks soaring and bonds dumping, is likely to be forgotten as the Grexit again takes center stage. Last Thursday afternoon’s forecast [see member section] proved fairly accurate:
Given the volatility and manipulation of the last two days, I wouldn’t be surprised to see SPX slightly exceed 2064 in order to stop out the bears before reversing.
When SPX overshot our target, we set our sites on 2073.28. SPX reached 2072.4 before reversing on cue — bagging our first and nearly our second downside targets (2049 vs 2046.)
With the futures currently down 11 points, that was the correct call.
USDJPY reversed nicely off the red TL as expected — though it topped out a little higher (119.21) than expected.
USDJPY, having done its job, will certainly retrace a great deal of this morning’s gains. Look for it to top out around 119.08.
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