We have another day in a now series of days that indicates the market has returned to a sense of normalcy. Even with the big news out there, the market is pushing into the green and the VIX is holding steady at around 15, which is a nice place to be for the VIX.
Yup, the big news is still Greece, but the market is seeing through the hyperbole, yes, seeing the glass as half-full now, not spilling over and dumping all the water onto the table.
- The euro erased losses after an official told reporters there was “still reason for some optimism” on Greek bailout talks as the region’s finance officials gathered in Brussels.
Optimism? Could these negotiations turn out any other way than capitulation and compromise? Everyone knows the outcome and now we are getting to the point where one side (Greece) is looking and asking for ways to save face.
- The shared currency also got a lift on a Bild newspaper report that the Greek government accidentally sent the wrong letter to Brussels on Thursday, with the intended version going a step further accepting conditions agreed to by the previous government.
Now, if that turns out to be true, Alexis Tsipras is gonna have some “splainin” to do. If it is true, he will need cover from the EU. They will have to give something to him, so he can go home and appear as if he did not totally give in. Gotta love the essential nature of politics. Populism can only take you so far, well, getting elected, but then come the hard choices, the choices rooted in reality, not language that people want to hear.
Speaking of hard choices and real potential dangers to the market, no one is really talking about a potential issue for the market that is so much bigger than Greece. I am talking a danger that could disrupt the US economy and set the market back quite a bit.
- The International Longshore and Warehouse Union and the Pacific Maritime Association have been stalemated in talks toward a five-year contract, an impasse that threatens to close seaports responsible for more than 40 percent of U.S. trade.
Now, the above is a serious issue and it is not able to displace Greece and the EU as the top story. If US trade is interrupted for any length of time, the global economy will suffer and suffer greatly, which will mean the market will respond powerfully.
Okay, enough about that. Just keep your eye in this one and be prepared to react if the market begins to react. In the meantime, let’s get a bit lighter, take the news up a notch, so to speak.
- With a few big ballot wins and public opinion tilting in their direction, advocates for legalizing pot have had a big couple of years. It's only the beginning. Advocates are targeting at least 11 states, through ballot measures and legislation, for legalization by 2017. If they succeed, more than a quarter of the U.S. population would live in states with legal, regulated marijuana.
Wow, man … Greece did what? Far out.
Trade in the day; invest in your life …