Now for some hindsight reasoning for the "supporting" fundamentals :
For the past 2 weeks, the big boys had been buying into this one-month-plus-long fear called "Greek elections" probably in anticipation of either a pro-bailout victory or massive liquidity injection by central banks in case of a pro-blackmail Syriza party victory ....
By aggregating possible votes to be garnered by the pro-bailout parties ( New Democracy and Pasok plus a few smaller parties ) , votes that they estimated from pre-election polls , the bigboys had probably figured out that pro-euro parties will have enough votes to form a coalition either way and this explains the little rally we saw last week ..
Add in a little pressure from ECB , to create liquidity events in Greece through bank runs & empty ATMs & suspended credit for supply of basic utilities & essential goods from rest of europe , ECB had apparently convinced the Greeks that their endless game of chicken has been played too far for their own good .. and this little appetitiser or rehearsal to "drachmageddon" is just the beginning of something much bigger if Greeks vote for more blackmail ...
Now that the election is over and the public is at maximum euphoria ( though bailout-addicted greece will continue to demand further bailouts & no austerity until they are eventually kicked out of eurozone maybe after german elections ) , i guess today is the time for the big boys to sell into strength what they accumulated in last 2 weeks for this moment of election results ..
now for the actions taken on technicals :
2 weeks ago in early jun , the dow & hsi & gold had hit a nice bottom... I bought some gold n euro - made some, cut some at break even .. I bought again some Gold on retrace recently ( see last post ) at 1581 ahead of the "massive liquidity injection post greek elections " rumour ( actually it was purely the charts that told me to enter , not the news flow of which i can only know after the event ) ... I got out my first half at 1624 and then final half at 1630 as planned last friday( see chart in prev post - again it was charts that told me to get out , not the greek elections ) before Gold spiked down this morning to 1616 briefly after Greek elections.. but it had recovered somewhat since then ..maybe in anticipation of coming fomc this week ..
I went long on friday with some small amount of HSi call wrts, kepcorp wrts, yoma ( but i have not found time to post this part over the weekend )
When HSi & dow futures hit my euphoric supply levels this morning at open on a big gap up ( 19620 for hsi futures, 12800 for dow futures ) , i could not help but dump all my longs acquired last friday & go a little short ( see below ) -- short i did at about 9.15am hsi open with a small amount of HSi put wrts & hoping to cover tomorrow at a small profit ..
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