There are concerns that a bailout for the country may not be enough to prevent a default. Moreover, it might even be replicated in other indebted nations. Stock market, however, behave as this were an unlikely outcome of the current crisis. Markets are also betting that a V-shaped recession has developed and economies are on the right path to recover. (With a lot of sovereign debt though that will impact on growth at least in western countries).
The Euro weakened, but continues to remain above 1.32. I have been expecting lower prices for quite a long time, but so far the breakout has not occurred.
The SPDR Gold Trust is moving above the trendline very close to its high, but underperforming the stock market. The dollar strength may have influenced this situation, but the perception of dollar as a safe have may have aalso decreased lately. It will come back, I am sure.
The emini S&P continues its up leg. Quite regularly and impressive! I am not following this bull market and not making money. This is quite frustrating but chasing prices is soething I do not like.
Even more impressive is the Nasdaq and tech stocks. With the emini at 2053 (see the weekly chart), we are not so far from the high of 2263 printed back at the end of 2007. What a great opportunity.
I am sure markets will surprise us again....
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