Why No Rally After the Greek Deal?
Haven't you thought of why isn't there any Rally after the 2nd (and final?) Greek bailout deal is in place.... BUT worse still, US markets had a fairly breakeven finish and Asian markets are going down?!
Where is the rally and ticker tape parade you ask?
In short, we already enjoyed that rally over the last two months. Take a look at the STI Index chart below.
Remember that the stock market is always forward looking. So the completion of this deal was fully expected and already baked into stock prices.
Furthermore, stock markets have already risen by >20% just in 2 months!
The Steam cannot keep continuing without letting out some air isn't it?
Thus, based on the normal reaction, the subsequent trend will be Downwards. [This is especially so after the STI Index breaks through the critical 3,000 point support and lost nearly 1% in a single day]
Bloodshed is going to come... i have sold ALL my holdings today. Have you?
Speaking of which, the prospects are good in the medium to long run.
Yes, there are concerns about Greece not being able to follow the strict austerity rules. And yes, they might go through an elongated recession or depression. However, the situation in Europe is better than before and this deal buys time to continue to heal the problems with bigger nations like Italy and Spain. In addition, both nations are seeing their bond rates go down which is a sign that things are on the mend.
Thus, in conclusion, There will be ripe, value stocks to be picked up once again after the dust settles. I will be there in time, you can join me together to make stunning profits if you keep track of my blog and facebook from now on! :)