Over the last 24 hours, stocks have surged higher as global equities have turned to the upside. One big catalyst yesterday was a headline that showed Germany was more willing to compromise over the structure of a Greek deal, making it a one-off rather than a short-term deal that later had to be renegotiated. Great! Stocks popped into the European close and held those levels through the US afternoon.
But at 10:30 AM ET this morning, stocks dropped sharply intraday because of another headline that revealed the IMF was fed up with Greece and had left Brussels. The bottom line here is that trading Greek headlines is infuriating and you might as well head on over to your local horse racing track to try and predict outcomes. Thankfully, there are lots of other drivers today (another sub-300k jobless claims print, very strong retail sales, and corporate news from Fox) to help push the market up and down; Greece isn’t the only game in town. That said, we’ve been telling clients for months to look past the Greek headlines, and the last two days of trading are the perfect example why.