With the absence of earnings to keep investors occupied, the markets focus is once again on the PIIGS – Portugal, Ireland, Italy, Greece and Spain. It certainly appears that Greece is not going to accept austerity measures and is going to have to default on their bonds. That will send shockwaves throughout the other weak nations and may lead to their default. Apart from the obvious, this will also send the dollar higher, which will hurt commodities and at least in this rally, hurt stocks. We’re in for a bumpy few weeks until the next earnings season arrives.
Regards -Keith Springer