It transpired exactly as I thought. Greeks elected pro-bailout parties because they want other Europeans to pay for their debt. They elected the same political parties who are responsible for this mess in the 1st place but I suppose they have no alternative. The Fox is in charge of the hen house. What happens next?
FT Alphaville has this informative piece:
http://ftalphaville.ft.com/blog/2012/06/17/1047971/greece-the-post-election-questions/
And what about the pop in Euro? Oh that? It is already climbing down. Folks will soon realise that there will not be any Central Bank money pumping come Monday and Ben is going to disappoint as well on June 20.Nothing will come out of G20 as well. It could not have been any worse for the bulls in the short term. Things did not change and the bad news is not bad enough.
Lets see where it ends by next week.
I am happily sitting out of the whole drama.
BB - I'd love your comments / thoughts on the VIX. Seems waaaay too low given all of the uncertainty out there.
ReplyDeleteIf you look at the weekly chart, VIX has some more room to fall. I expect VIX to reach around 15 by 3rd July. We will see some choppiness this week leading to a lower price in SPX but may not be much. If we hold 1300-1320 by this weekend, we might see another push higher next week. It is going to be chop fest for a while but selling is not over by long shot. After reaching 15 level VIX will jump back higher in July. That is my expectation.
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