>GREED & FEAR: China’s technical signal

Verbier
The Eurozone newsflow has not deteriorated dramatically as yet even though the holiday
season is formally ending. Still GREED & fear remains suspicious of further substantive equity
market advances from here. Stock markets want to see the ECB buying periphery sovereign
bonds now. But it looks like they will have to wait, with the latest news reports that the ECB will
defer any announcement until after the German Constitutional Court ruling on 12 September.
Still so long as hopes of the ECB bond buying programme are not dashed completely, markets
can remain hopeful which should prevent a significant decline. It is also likely that Eurozone
leaders will cut some slack to the pleas of Greek leader Antonis Samaras for more time in
meeting its fiscal deficit target. Such a development will in turn reduce near term fears of a
Greek exit. In GREED & fear’s view it remains the case that the German political establishment
does not want to risk a Greek exit for fear of opening Pandora’s Box.


To read report in detail: GREED & FEAR
RISH TRADER