I think there will be more attempts by the troika and others to strike a deal before the clock strikes midnight on Tuesday.
Naturally Monday’s global stock sell-off was in the cards should there be no agreement before markets opened Monday’s.
The damage Monday was widespread. Those markets at ground zero in Europe felt selling the most while emerging markets also felt the carnage. U.S. markets were down as sellers saw stops hit and support challenged.
Economic data, good or bad, was ignored for the most part which is understandable.
By the way, Greece isn’t the only party with troubles, Puerto Rico’s president stated they will soon be in default without concessions. This affects billions in previously popular municipal bonds.
Leading market sectors higher included: Volatility (VIX), Gold (GLD), Investment Grade Corp Bonds (LQD), Treasury Bonds (TLT), Natural Gas (UNG) and not much else.
Leading market sectors lower included: Everything else.
There’s very little for me to add beyond just letting selective charts do all the talking.
The top 20 market movers by percentage change in volume whether rising or falling is available daily.
Volume was heavy on selling once again and breadth per the WSJ was decidedly negative scoring a negative 10/90 day.
Greece has said it intends to default on payments to the IMF due Tuesday.
If so, that takes some of the guessing game away from those expecting a deal Tuesday.
Economic data is on tap with S&P Case Shiller Home Price Index; Chicago PMI and Consumer Confidence. Given that these are old news it may be wise to focus on current conditions like the markets. A noteworthy appearance will be made by Fed Vice-Chair William Dudley and he could say something to move markets.
Perhaps the worst thing that will happen is Greece will get bailed out without doing much to change its spendthrift ways. Lastly I’m hoping the U.S. doesn’t get involved with any rescue but nothing would surprise me. After all we live in centrally planed times.
Let’s see what happens.
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Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001. ETF Digest was named one of the most informative ETF websites in the 10th Annual Global ETF Awards.
Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market sectors and related ETF's are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation's aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com
|WTI Crude Futr||58.27||-1.36||-2.28 %||17:14|
|US Dollar||95.08||0.00||0.00 %||17:27|
|Brazil||1657.983||1.28 %||4.57 %||-9.52 %|
|Russia||513.695||-0.19 %||-2.76 %||26.86 %|
|India||501.852||-0.02 %||0.15 %||1.10 %|
|China||75.400||-2.41 %||-5.81 %||14.18 %|