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Two Ways To Play: Could Greece Default?


Strengthen your portfolio in good times and bad.

Concerns on Greece

Could Greece be the first member of the European Union to default? Former Bank of England policy maker Willem Buiter thinks so.

According to Bloomberg, Buiter, who will join Citigroup (C) next month as the chief economist, says "unless there are radical fiscal actions, lasting cuts in spending, and tax increases of at least 7% of GDP" Greece could be the first of the EU's 15 sovereign nations to default since Germany in 1948.

Meanwhile Joaquin Almunia, who's in charge of the EU's economic and monetary policy, says the European Commission stands ready to assist the Greek government. But Buiter says Greece can expect a bailout from the ECB "only at a price."

From the Bull Pen: Credit concerns stemming from Greece aren't something to ignore. But if you think the global economy has come this far only to let Greece ruin the party, you may be mistaken. Look to the S&P 500 ETF (SPY). Sell stops are crucial so consider setting them near $108 support.

From the Bear Cave: Remember, as President Obama stated yesterday, the government will continue its attempts to spend its way out of the recession, which still spells an ominous course for the US dollar. Bears can look to the dollar bearish fund (UDN); sell stops can be below $27.90 support.

For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.

A Quick Check Around the World

Asian trading closed with the Nikkei -1.34%, India -0.59%, Hang Seng -1.44%, Shanghai -1.73%, and Taiwan 0.37%.

Across the pond, we see the FTSE 0.10%, CAC 0.35%, DAX 0.04%

As of 8:20 AM EST, S&P Futures are trading +5.75 to 1095.75. Nasdaq futures are +10.00 to 1778.280

A Look at Commodities

Over in commodities, crude oil is +0.88 to 73.50 while gold is -1.600 to 1141.80 this morning. Silver is +0.300 to 1781.00 and copper +1.050 to 317.55.

The dollar Index is -0.2900 to 76.0400.

On the Radar


08:15 Wholesale Inventories -0.6% cons.
10:30 Crude Inventories

Click here for the full trading radar.

Good luck today!
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No positions in stocks mentioned.

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