To Bail or Not To Bail

Will Europe bail out Greece or won't they? There are a lot of unknowns that will shape trading tomorrow. The world economies are unbalanced and contagion is a definite possibility. However, barring contagion and putting aside Greece I would expect the market to grind higher for a few days to keep the bears honest. Have a good night.

9 comments:

Anonymous said...

We have already seen a 3.5% rally from Friday's low to today's high in the SP futures. I was holding out for more as I was thinking the same thing about the end of day.

Looking to short (increase shorts) on a rally to 1080-85 but we have to recognize that 3.5% is a decent bounce if we are in for a real correction here, which I think we are. We could very well have seen the high for the bounce...

JD

Tsachy Mishal said...

JD,

Seems like people were buying puts again today. I want to see the Rydex data. If shorts increased again I would say this has more to go.

CP said...

It's a terrible sign, evocative of late-summer 2008, that markets are gapping up and down based on bailout rumors.

If the world economy and financial system had indeed recovered, would this be happening?

PJ said...

CP - Yeah, especially since all the bailouts do is move the problems around - delay the crisis, not cure it.

CP said...

Most of the really good bearish traders are agonizing about the possibility of a 50 point rally, when the Germans could tell Greece to pound sand, and Greece could tell creditors to pound sand, and we'd be at 800 again in a week.

Anonymous said...

JD friday spx hit low of 1045. Today we closed at 1070. 25/1045 = 2.4% . I would short if we did bounce 3.5% which would be 1082

Anonymous said...

okay we did get to 3.2% if you make it to today's high of 1077/8

Pilot said...

I think a small move up before a big move down. Have been short the S&P intraday at resistance levels several days now, and it has been working out for me.

Pilot

Anonymous said...

For the record, this is my quote...

"We have already seen a 3.5% rally from Friday's low to today's high in the SP futures."

Friday's low - 1040.75
Today's high - 1077.00

That's 3.48% to be exact.

Good luck to all,

JD