Good morning. With the Greeks provisionally agreeing to a third bailout - with terms/conditions worse than those the Greek people voted against just a week ago, equities futures have swung higher, sp +14pts, we're set to open around 2090. DXY is rallying, +0.3% in the DXY 96.30s.
So... another Greek can kick.. at least 'provisionally'.
The only issue now is whether the market can break new historic highs (in some indexes, certainly not all) in August.. before more significant weakness into early October.
From a pure cyclical perspective, equity bears would probably do well to step aside for at least 2-3 weeks.
Update from a BIG dip buyer.. Mr C.
Doomer chat, Hunter with Mr Smith
Overnight China action: the swings continue... but more moderate, after a little morning chop... the Shanghai comp' settled +2.4% @ 3970. The 4K level looks imminent, with bounce upside to the 4300/500 zone into August. I expect renewed weakness after mid August... to at least 3K... perhaps 2500 for a capitulation washout in Sept/Oct.
If correct, it will be interesting to see how the Chinese leadership respond to another major equity down wave. Will they have dedicated firing squads for equity bears, or just maybe just seize their homes and send them to the mines of Tibet? Would that be bullish resource sector?
Have a good week.
7.55am.. sp +14pts.. 2090... with a clear gap zone around 2100.
Meanwhile... some maniac is touting more GREXIT nonsense talk....
As ever... make of that.. what you will ;)
9.00am.. sp' set to open around 2090... above first soft target... next level... price gap zone/threshold of 2100.
notable weakness: metals, Gold -$8... with Silver -0.5%... not helping the miners, GDX -0.8%
9.37am.. Well.. there are the 2090s... next up... 2100 by 11am.. probably.. then some cooling.... back to 2090/85 zone.
A lot of Yellen this week... bears beware!