Equities are bouncing off some key levels. Europe is seeing high volatility as speculators look to hedge euro weakness and the grexit issue comes and goes. Technically a corrective bounce aside unless we see a reversal in the multi month technicals we should see many indexes fail to achieve higher highs here to confirm a coming correction. For my own book i’m now holding more cash than ive held for several years. Not as euros, I add. On the grexit issue macro wise, as the private sector holds very little Greek credit the contagion issue is off the table. Few cds notes have been issued in the last few years on a grexit. The credit has been socialized by the imf and ecb effectively. The losses will accrue to the long suffering European middle classes their fore and not to the banking sector. Thank your great leaders for their wisdom in this respect, should Greece default.
Here without delay the Swiss team’s latest:
And here Fitzpatrick’s latest:
and here GS
More to come when im back on dry land later today or early tomorrow.
Here a great tech report making a lot of tech sense from LCM:
Here MS with their regular weekly fx strat.
Cheers Rich