Ahead of the open, (17-05)

Market frustrating cycle of the past 2 weeks continues with no end in sight. 

 

A monotonous bleed with the same overnight/ intraday trends based on fear mongering (now deposit flight from Greece/Spain), solution speculation all based on headlines originating from Europe.  It's no wonder that once short covering ends, buying demand peters out and market falls into the close on a daily basis.  Instead of dealing with this cycle, money just remains or becomes sidelined waiting for clarity before getting involved.  The only thing keeping the market from panic is the possibility of a grand solution as the idea of keeping Greece in the zone is in the ECB interests to avoid chaos.  If market doesn’t come to grip with this idea that ECB will come in mitigate the crisis, we could be dealing with this environment till June 17/Greece elections.