Greece headlines hit just before the European close again. Greece is submitting a counter-proposal and meeting creditors Saturday. To think this tiny country moves the currency, bond and stock markets globally is a joke! Greece is better off out of the Euro in my opinion, and its just a matter of time before they get there. All the debt is owned by the IMF and ECB, so there will be no credit contagion problem... just a media circus! Plus this leak sounds like it came from the Greek side, which has no credibility in my mind.
Today is a good day to clean up and hedge some long positions after nice gains over past few days. The S&P remains in this tight trading range. I thought it was going to break to the down side before Wednesday's strong rally. Still like select tech and health care names, but prefer to hold them hedged until the S&P can muscle up some renewed strength. This might not occur until the next earnings season begins after the Independence Day Holiday. With a month-long gap before earnings news flow, covered calls might be an attractive way to hedge longs. Any pre-announcements are likely to occur in the next few weeks before the earnings quiet period, and this may give the shorts the upper-hand near-term.
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