I wonder if anybody read what was the outcome of the overnight EU summit. As many experts expected, the EU leaders came out with empty phrases and proclamations and no details. The report of the meeting is just three pages long.
Generally, EU talked banks and lenders into writing off 50% of the Greek debt, which with 40% of current face value of the bonds, this 50% write-off is actually a great deal for the bond holders.
The rescue fund shall be increased by 1.4 trillion euros (increase from 8% – 9%), how? Nobody knows yet. The French president is supposed to be convincing Chinese to invest into the fund, but more real looks printing more money. In secret, obviously, since EU doesn’t allow it based on their monetary policy.
Well, we are approaching to the resistance at 1275 zone. Although this rally is impressive and should be respected (and I missed it, because I didn’t believe in it) the question is: Is it sustainable? The answer is NO.
Thus, from short term, this was a great rally, but still within a bear market and I am keeping my market status in correction.
Happy Trading!
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Wall street is one big Circus with plenty of clowns out there waiting to strip you out of your money.