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Two Ways to Play: Greece's Spreading Debt Problems

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Strengthen your portfolio in good times and bad.

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Concerns about Greece's debt problems and fears it will spread to other debt-heavy economies are keeping global markets are under pressure again this morning. These worries are moving the sovereign debt market as the cost to insure Greek and Portuguese debt has moved to record levels.

According to CMA DataVision, in early morning trading Greece's five-year sovereign credit-default swap spreads were at 4.46 percentage points up from a record close of 4.27 on Thursday. Portugal's spreads were quoted at 2.39 percentage points after closing at 2.29 during Thursday's trading session. Spain's sovereign CDS spreads were quoted at 1.82 percentage points, widening by 0.12 percentage points.

The pressure from Europe is spreading over to the US as equity futures are moving lower and the dollar is rallying to a new six-month high.

From the Bull Pen: When the fear subsides, one could look to purchase stocks that reported strong quarters. Google's (GOOG) is currently perched right at its 200-DMA. Those bullish may consider buying the stock here with a stop loss around $520.

From the Bear Cave: Shares of Amazon (AMZN) have been under pressure of late as the stock is down 20 points from a high of $145. So far bulls have defended the $115 level. Those bearish could consider selling the stock short with a buy stop at $120.

A Quick Check Around the World

Asian trading closed with the Nikkei -2.89%, India -2.68%, Hang Seng -3.33%, Shanghai -1.87%, and Taiwan -4.30%.

Across the pond, we see the FTSE -1.77%, CAC -2.16%, DAX -1.51%, Swiss Market -1.95%, ATX -1.81%, and Stockholm -1.26%.

In commodities, crude oil is trading +0.30 to 73.44 while gold is trading -7.10 to 1055.70 this morning.

A quick check of the EUR/USD -.0051 to 1.3710 and the USD/JPY +0.50 to 89.56.

On the Radar Today:

Economics

08:30 Nonfarm Payrolls 50k cons.
08:30 Unemployment Rate 10.0% cons.
08:30 Average Workweek 33.2 cons.
09:45 Hourly Earnings 0.2% cons.
03:00 Consumer Credit -9.2 b cons.

Earnings

Before: AET, AYE, BZH, SPG, SEP, TSN, WY, YRCW

After:

Speeches

05:15 James Bullard

Click here for the full trading radar.

Have a great day!
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No positions in stocks mentioned.

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