It just seems to this observer that the Greek kabuki dance is never ending. How can banks keep lending money to a country that is insolvent? That seems a little backward and just stupid to me. What do you think of the situation in Greece?
Here's the reality of the situation, Greece is going to default, the bankers may as well get ready to write off those loans as the money is not coming back. The next question is, whose next, Portugal, Spain or Italy? The next buzzword that is going to come out of all this is contagion. I think when Greece exits the eurozone it will be good for the euro longer-term. Think of it like when a company announces bad earnings and fires the CEO. The stock price has anticipated and discounted all the bad news and for the most part things get better over time for that company. The euro is the same way as pretty much all the bad news is out, except the actual exit of Greece from the euro.
Sooner or later it's going to come to crunch time and time is getting short. Angela Merkel and Germany are going to have to swallow their pride and make some important decisions very soon.
So onto the only economy that seems to be working and that is the US. Today I'm are going to be looking at the major indices to see if they are beginning to tire or getting ready for another upward push.
I'm also going to be looking at three stocks today.
Public Service Enterprise Group Inc. (NYSE:PEG)
Public Service Enterprise Group Inc. through its subsidiaries, operates as an energy company primarily in the Northeastern and Mid-Atlantic United States. The company operates nuclear, coal, gas, oil-fired, and renewable generation facilities with a generation capacity of approximately 13,146 megawatts. It sells electricity, natural gas, emissions credits, and a series of energy-related products that are used to optimize the operation of the energy grid. The company also transmits electricity; and distributes electricity and gas to residential, commercial, and industrial customers, as well as invests in solar generation projects, and implements energy efficiency and demand response programs.
Alibaba Group Holding Limited (NYSE:BABA)
Alibaba Group Holding Limited through its subsidiaries, operates as an online and mobile commerce company in the Peoples Republic of China and internationally. It operates Taobao Marketplace, an online shopping destination; Tmall, a third-party platform for brands and retailers; Juhuasuan, a group buying marketplace; Alibaba.com, an online business-to-business marketplace that focuses on global trade among businesses; 1688.com, an online wholesale marketplace; and AliExpress, a consumer marketplace. The company also provides pay-for-performance and display marketing services through its Alimama marketing technology platform; Taobao Ad Network and Exchange (TANX), a real-time online advertising exchange in China; and data management platform that allows participants on TANX to evaluate and select online advertising inventory using behavioral data, as well as data from browsing behavior and shopping history.
Tyson Foods Inc. (NYSE:TSN)
Tyson Foods Inc. together with its subsidiaries, produces, distributes, and markets chicken, beef, pork, prepared foods, and related allied products worldwide. The company breeds and raises chickens; and processes live chickens into fresh, frozen, and value-added chicken products. It also processes live fed cattle, and live market hogs and allied products; fabricates pork and dressed beef carcasses into primal and sub-primal cuts and case-ready products; and sells hides and meats. In addition, the company manufactures and markets frozen and refrigerated food products, such as pepperoni, bacon, beef and pork pizza toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, and processed meats. It sells its products through sales staff, independent brokers, and trading companies primarily under Tyson, Jimmy Dean, Hillshire Farm, Sara Lee frozen bakery, Ball Park, Wright, Aidells, and State Fair brand names.
I will also be taking a look at gold which dived below the $1200 level today, crude oil and the US dollar.
It looks like it's going to be a great summer with lots of trading opportunities. It is my goal and mission to help you find them with MarketClub's Trade Triangle technology.
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