Monday, June 18, 2012

Greece stays in Euro

So everyone knows the market did what was expected, Greece stays in Euro through a pro-coalition government.  The markets are up across the boards - and the key this morning is whether we have follow through in the move.
Contagion risk is off the cards for now, but we have to see whether or not we can get some pro-growth fiscal integration policies out of the G20, or the eurobonds to really put this euro headline risk behind for awhile.

The possible binary movements will come from the Fed action this week, we might see a strong sell-off in Gold if we get a non action.

Even corrections can be a process of bottoming out - we may have a trifecta of catalysts to go melt-up if we get the G20 and Fed both acting strongly this week.  The risk is definitely to the upside for the week.