For six years the Greece Crisis has hung over the stock market, creating temporary rifts in the record high stock price continuum. Mainstream media talked of a Greece Default as being a cataclysmic event, triggering a series of enormous dominoes, that would send the entire global economy into a depression. Greek yogurt, Greek Olives, Feta Cheese would be in short supply. Financial institutions would gum up amid excess yogurt curd. It would be one hot mess.
Today we are one day closer to this cataclysmic event, that hot mess of fermenting aged Greek by products. The stench of rotting olives and moldy cheese cling to the streets of Greece, ready to spread throughout the Eurozone. The Greeks are set to do the unthinkable. Something world bloggers and business news personalities claimed would end the world as we know it. The Greeks are ready to default on their debt payments.
In year past the stock market would fall over 1%, as they did earlier this week, on this previously unthinkable revelation. Monday stocks were lower because of these Greek Default fears.
Today those same fears resurfaced. The Greek game of global economic chicken continued, yet the market seemed to know who was going to win, and who was going to end up being a case of processed chicken nuggets.
The Greek fears of yesterday, yester year and this morning turned into joy and stoked a massive rally, sending the NASDAQ to a new all time record high closing price.
Assuming these gains hold, we can add Debt Defaults to the list of reasons to buy stocks.
Of course I was not suprised by this action. Even as late as last evening, with stock futures heading south I said to be prepared for a sharp rally to the upside.
Not sure how many traders were looking for record highs this month, this summer, or this week, but heck we are getting them and its coming fast and furious. The market is telling you, yet again, that price remains everything, and that no matter what happens to Greece, the world will still get its Yogurt, Greek Olives and Feta Cheese.