So lets see…
You have Greece on the verge of default on it’s debt, who almost slapped away help., Who’s Prime Minster decided on Sunday that he does not want to be a part of the process anymore. And now less then 12 hours later it’s all about Italy stealing the headlines. Rumored to be the next Eurozone country to need a bailout of sorts.
When you go to a bank and try and take out a loan, and the bank tells you you’ll be paying 50% interest on that 10 year loan, you would think that’s a problem right? It’s a tad bid of an exaggeration but the
Italian bond rates have been soaring through the roof:
The yield on 10-year Italian government bond topped 6.6% to set a fresh euro-era high in morning trading, according to FactSet Research data.
These are all troubling signs. Obviously these concerns are things to look at when trying to figure out the market direction in US markets. So understanding the short and long term ramifications are key to creating a strategy to profit from it.
More to come tonight on that topic.
Happy Trading Tuesday!