Monday, June 29, 2015

A Greek Gift

Greeks have given those who hold cash a gift overnight.  A BTFD opportunity.  The market was set up for this as derisking had taken place already over the past two weeks on the Greek drama, and the uncertainty put a lid on any rallies in the SPX.  Now that we finally got the long awaited Greece panic (likely default, not that it matters if they do or don't), those who held cash waiting for this panic to buy are finally rewarded with a buying opportunity.  The only thing left to do is to take advantage of it and ignore the fear mongering and the chicken littles screaming "Lehman moment", "contagion", etc.

I have bought S&P futures overnight at levels where there is a very good risk reward, and I will hold it till the fear dies down, it could be quite a short squeezing rally when the bears realize that their number one bear catalyst could only take down the S&P 1%, and with European indices aggressively rallying off the Greece fear gap down.  This is the bear's worst nightmare.  Their number one catalyst not even able to keep the market down.  There is really just one thing to do here:  Buy stocks.