Greece Holding the Cards!
It really is amazing how much complacency there is in the equity markets!!! It’s almost as if anything that might go wrong in the world the feeling is that the central banks will come to the rescue. As in the case of China with its markets down nearly 25 percent for the year. The Chinese government is spending 19 billion to shore up stock prices. Markets are no longer free!!! It’s a whole new world. We are worrying about Greece with its 500 billion dollar problem but no one is concerned of the United States 100 trillion dollar problem. As I stated the markets need to fill the gaps below all the way down to 16100. I think the next 6-8 weeks the markets should decline unless Greece decides to play nice in the sand box. Any rally should work off the oversold condition and look for exit points. I stated that any rally between 18100-18500 I would sell and go into cash. The markets got up to 18300. I stated that if oil closed below 57.60 should test the low 50 s and that is exactly what happen in oil. Gold I stated I have sell signals on the daily and weekly charts and with the uncertainty in the world the U.S. Dollar is pushing up and hurting gold.