Thanks to a solar storm we’ve avoided a Greek default, and seen the largest sovereign debt restructuring in history. Private creditors will loose 75% on their value (100 billion euros). There was an 85% + participation and Greece will activate the collective action clause (CAC) which will basically screw over the remaining holdouts.
I’d like to offer a swap of my sovereign debt! Hello? And my crippling debt? Spain, Portugal? The markets are digesting all this, this morning. After the NFP numbers, the American markets look optimistic and futures are pointing upwards after shrugging off the PSI announcement.
I’m looking at the markets with relative sceptisicm, as usual, and counting on my ranges to hold atleast through the beginning of next week as we approach March expiration. If we continue to crawl upwards on the $SPY, I’ll bail over $138.50, or roll up and out… It is a Friday.
Gold and Silver are tanking and Oil is flat.
The Euro is tanking, which strikes me as a bad omen.
So to translate the pre-open sentiment: risk on for equities, risk off for the Euro, sidelines for commodities.