Greece is a ticking time bomb in my opinion. Stay out of the US market unless you are short i.e. you expect the market to go lower.
Greece could be the single catalyst that causes large tsunami’s through the entire European and American financial systems.
I am so sick of this Federal Reserve. I think they have just made the biggest mistake by raising the Discount rate prematurely. This is really going to cost them and us the tax payers. Watch for a global shake-up of worldwide markets. As I write this the US futures markets are already down 1%.
I am expecting extreme volatility starting tomorrow. Don’t be surprise if you see 400-500 down DOW days. Don’t be surprised to see volatility in the 50s and 60s. How about VIX past 100? Yes, its possible.
Don’t forget, Europe is in big time trouble which has a direct affect on the Euro. This will have a ripple affect on UK i.e. the Pound, and the US market is very well connected with these markets so it will go down with everything else.
I suggest you:
- Get out of your long positions and move to cash
- Go short the market (you could short the SPYs or Q’s)
- Or wait and sit on the sidelines and see this global phenomenon unfold.
Get ready! Its about to get nasty.