Trading Greece

How to make money on Greek debt crises.

With talks of a deal with Europe, the Greek government is set to avoid default on its debt. That is taken as positive news to by the markerts as seen by the the 500 point move in the German Dax and also moves in all other European markerts. What that means is that, should the deal be finalised this week, and Greece receiving more funds from the EU, the Dax is likely to trade above 12 000 points within a few days or two weeks.hould the deal not go through, then the Dax will retrace back below 11 000.

WHY GREECE MATTERS.
Investors fear a Greek exit will make any debt guarantee by the EU useless. Previuosly, investors were able to buy Greek debt at high prices with the hope that the EU would chip in should Greece not be able to service its debt. Now that Europe is playing hide and seek with Athens, investors have many reosons to worry and that has led to a massive sell off of Greek government paper and caused bank runs in Greece. Stock markerts have erased gains since most companies trading on the stock exchanges are one way or the other exposed to Greece. A deal will then be good for EU banks and their affiliated business partners.

Though Greece has a very small economy and almost insignificant in the bigger scheme of things, it is the reputation of the European Union that is being put to test. Is the EU a strong economic union that can save member states in trouble or is the EU just a big helpless elephant? If the Greek issue is not solved, no investor will have full faith in the EU.

stocks recommendations;

linkedin at $217 with a price target of $260 in 3 to 4 weeks.

twitter at $35 with a price target of $50 in two months and $70 in six months. however keep a stop loss of $3 if earnings report comes bad. Even if twitter goes to the 20s price range, it still has a positive long term story.

amazon at $350 poised to reach $400 before  profit takin. look out for signs of weakenung in this strong bullish run, that will be the beggining of an Amazon stock pullback. this is a stock trading on emotions and expectations. Every time investors loss patience on the stock, new money finds finds its way back in.

watch tesla stock price at $265 and see if it will break to an all time high above $286. if it does not, the price is set for a pull back torward $250.

buy apple at $129 for a target of $136 in one or two weeks. the stock is picking up its loses as it climbs higher to the top of its three months  trading range.

the Dow Jones is at the top of its three months trading range of 17 800 and 18 200, any break to the upside would be positive for the coming few weeks as we enter earnings season. usually the markert tends to trade higher as the quartely earnings season approaches. The Greek crises seems solved, at least for now, the dollar is not too strong. Which means it is not hurting coporate profits that much and the Fed is dovish for now. All this is positive for the Dow Jones trading higher in the coming weeks.

Adding to that is the Nasdaq at an all time high, which means the Dow and the S&P will follow suit.