Over the weekend, there was little in the way of good news coming from Greece. According to Bloomberg:
Greece's biggest anti-bailout party, Syriza, said for the second time in as many days that it won't join a unity government, pushing the country closer to new elections that have sparked concerns about a euro-area exit.
Nine-MSN, in a story dated May 14, also gives little encouragement relative to progress in Greece:
Emergency Greek cabinet talks have yielded no clear progress, raising the prospect of new elections that could scupper reforms and drive the country out of the eurozone. If a cabinet cannot be formed by Thursday, when parliament convenes, new elections will have to be called in June.
The S&P 500 finished last week firmly in neutral territory and near support. Unless a breakthrough comes in the Greek political stalemate or central bankers step in, the S&P 500 may break below the neckline of a potentially bearish head-and-shoulders chart pattern (see below).
Should the pattern come into play, the video below describes how the possible downside targets of 1,306 and 1,280 were derived. The video also provides updates on the CCM Market Models, DeMark targets, and valuations of blue-chip dividend-paying stocks.
After you click play, use the button in the lower-right corner of the video player to view in full-screen mode. Hit Esc to exit full-screen mode.
If the S&P 500 futures make a clean break below 1,350 and the CCM Risk Model retreats below 50, we may take another incremental step away from risk. The bulls could get a jump start if a new Greek cabinet can be formed sometime before Thursday.
new TWTR.Widget({ version: 2, type: 'profile', rpp: 4, interval: 6000, width: 200, height: 300, theme: { shell: { background: '#2644bd', color: '#ffffff' }, tweets: { background: '#000000', color: '#ffffff', links: '#e6e61e' } }, features: { scrollbar: false, loop: false, live: false, hashtags: true, timestamp: true, avatars: false, behavior: 'all' } }).render().setUser('CiovaccoCapital').start();
var a2a_config = a2a_config || {}; a2a_config.linkname = "Short Takes - Financial Markets"; a2a_config.linkurl = "http://ciovaccocapital.com/wordpress/";
var a2a_config = a2a_config || {}; a2a_config.linkname = "Short Takes - Financial Markets"; a2a_config.linkurl = "http://ciovaccocapital.com/wordpress/";
Entries (RSS) Atom Feed
Copyright © 2010 Ciovacco Capital Management, LLC. All Rights Reserved. Chris Ciovacco is the Chief Investment Officer for Ciovacco Capital Management, LLC (CCM). Terms of Use. This article contains the current opinions of the author but not necessarily those of CCM. The opinions are subject to change without notice. This article is distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. The charts and comments are not recommendations to buy or sell any security. Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotations are not predictive of any future market action rather they only demonstrate the opinion of the author as to a range of possibilities going forward. All material presented herein is believed to be reliable but we cannot attest to its accuracy. The information contained herein (including historical prices or values) has been obtained from sources that Ciovacco Capital Management (CCM) considers to be reliable; however, CCM makes no representation as to, or accepts any responsibility or liability for, the accuracy or completeness of the information contained herein or any decision made or action taken by you or any third party in reliance upon the data. Some results are derived using historical estimations from available data. Investment recommendations may change and readers are urged to check with tax and investment advisors before making any investment decisions. Opinions expressed in these reports may change without prior notice. This memorandum is based on information available to the public. No representation is made that it is accurate or complete. This memorandum is not an offer to buy or sell or a solicitation of an offer to buy or sell the securities mentioned. The investments discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is not necessarily a guide to future performance. The price or value of the investments to which this report relates, either directly or indirectly, may fall or rise against the interest of investors. All prices and yields contained in this report are subject to change without notice. This information is based on hypothetical assumptions and is intended for illustrative purposes only. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. CCM would like to thank StockCharts.com for helping Short Takes create great looking charts Short Takes is proudly powered by WordPress . Entries (RSS)
var a2a_config = a2a_config || {}; a2a_config.linkname = "Short Takes - Financial Markets"; a2a_config.linkurl = "http://ciovaccocapital.com/wordpress/";
Entries (RSS) Atom Feed
Copyright © 2010 Ciovacco Capital Management, LLC. All Rights Reserved. Chris Ciovacco is the Chief Investment Officer for Ciovacco Capital Management, LLC (CCM). Terms of Use. This article contains the current opinions of the author but not necessarily those of CCM. The opinions are subject to change without notice. This article is distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. The charts and comments are not recommendations to buy or sell any security. Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotations are not predictive of any future market action rather they only demonstrate the opinion of the author as to a range of possibilities going forward. All material presented herein is believed to be reliable but we cannot attest to its accuracy. The information contained herein (including historical prices or values) has been obtained from sources that Ciovacco Capital Management (CCM) considers to be reliable; however, CCM makes no representation as to, or accepts any responsibility or liability for, the accuracy or completeness of the information contained herein or any decision made or action taken by you or any third party in reliance upon the data. Some results are derived using historical estimations from available data. Investment recommendations may change and readers are urged to check with tax and investment advisors before making any investment decisions. Opinions expressed in these reports may change without prior notice. This memorandum is based on information available to the public. No representation is made that it is accurate or complete. This memorandum is not an offer to buy or sell or a solicitation of an offer to buy or sell the securities mentioned. The investments discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is not necessarily a guide to future performance. The price or value of the investments to which this report relates, either directly or indirectly, may fall or rise against the interest of investors. All prices and yields contained in this report are subject to change without notice. This information is based on hypothetical assumptions and is intended for illustrative purposes only. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. CCM would like to thank StockCharts.com for helping Short Takes create great looking charts Short Takes is proudly powered by WordPress . Entries (RSS)
Read Full Article »