The major market indexes retraced Friday’s sell off, and then some, as Greece’s parliament voted in favor of strict financial reforms in order to receive the latest bailout package of at least $130 billion Euros.
Athens burned for most of the night as protestors rioted and questioned the wisdom of having to endure more hardship after years of recessionary conditions along with an unemployment rate that is approaching 21% and likely to get worse.
It’s still uncertain whether the bailout will actually go through, as the Eurozone Finance Ministers will meet this Wednesday and will have to be convinced that Greece will abide all terms.
Still, the big question in my mind remains whether Greece can actually be saved, even if this second bailout is implemented, as it’s unclear how this country can possibly grow economically and pay down its debt.
Nevertheless, the financial markets liked the fact that a default was avoided for the time being, and the major indexes rallied with the S&P 500 gaining +0.68%. Oil broke though the $100/barrel level while gold meandered but the Gold ETF (GLD) added +0.22%.
The European markets ended to the upside as well. However, after the close, Moody’s downgraded several Sovereigns, including Italy, Spain and Portugal.
Trend wise, we remain on the bullish side with most sector, country and equity ETFs showing positive momentum numbers, as I posted in this morning’s Cutline Reports.
Our Domestic TTI (Trend Tracking Index) moved to +5.13% above its trend line, while its International cousin hovers +2.80% above its dividing line between bullish and bearish territory.
Disclosure: Holdings in GLD
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