Nothing resolved in Europe except for the fact that the Greek people overwhelmingly voted “No” to living with austerity measures proposed by lenders. Markets are still on edge.
Greece is a small country but there is a lot of debt. Who, is exposed to what, is the big concern. And of course there are several other countries in similar straights.
And then there’s China. I’ll check in on them on Wednesday.
In tonight’s video I look at today’s market action and then look at Apple (AAP), Caterpillar (CAT), Intel (INTC) and Gilead Sciences (GILD). I exited the GILD trade idea today for 117% profit in 6 days. Details on the Trade Ideas page.
The Dow Jones Industrial Average (DJIA) and the S&P 500 closed down on Thursday, although only slightly. I view that as negative as usually the market seems to rally the last trading day before a national holiday like Independence Day.
Greece continues to be in the news with the country voting Sunday on a referendum to accept austerity conditions associated with additional funding of their debt. The government led by Prime Minister Tsipras is urging the country to “vote no” and call the EU’s bluff.
The markets are watching this closely as no one knows what is going to happen. Will Greece be the domino that starts a chain of events that rolls out of control? Or will the EU roll over and figure out some way to kick the can down the road again?
I don’t know what is going to happen in Europe but I do know two things:
Markets don’t like major uncertainty.
Confidence in the markets is a fragile thing.
In today’s weekend video I review the market action for Thursday and for the week. I also take a quick look at the monthly charts. This weekend I am adding several actively traded ETFs to the review.