In essence the Banks agreed this morning to take half of what they are owed by Greece as part of a deal brokered by European leaders to solve the continent's debt crisis and prevent it from igniting a new global financial meltdown.
The reaction is what you would expect from news like this, we see Bunds falling 150 pips, euro up above 1.40 spreads widen, and Stocks going through the roof.
It looks like we are going to reclaim 12000 again in the DOW, which marks a pretty significant turnaround for the month given we started the month with the DOW trading mid 10000s!
Going forward there no reason for the Stocks to not keep rallying, but quite frankly its hard to think that this is it, Problem solved, although short term I think it seems that way. Listening to bank strategists some are predicting another 10-20% up from here, and looking at the momentum in these markets I can't say I can disagree with them. But as always got to keep tabs of new news coming out.
We are awaiting US GDP so this will set the tone for the rest of the session.
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