By Markus Heitkoetter
￼The first week of July is “typically” a quiet week of trading. With lower volatility and lower volume ahead of the 4th of July holiday, it’s a perfect time of year for traders to take a few extra days off to be with family.
BUT someone forgot to give that memo to Greece last week!
In a week that was dominated by news from Greece, the VIX (aka “Fear Index”) jumped to multi-months highs, and the major indices lost 1%+.
The S&P suffered a 1.18% loss last week, ending the week at 2076.78. With last week’s decline, both the S&P and DOW traded at levels not seen since March.
The DOW lost 1.21% and ended the week at 17730.11. After last week’s loss, the DOW is in negative territory for the year, down .5% YTD.
While traders in the U.S. celebrated Independence Day over the weekend, Greece is voting on whether or not they want their independence from the European Union on Sunday.
After a week of missed deadlines, missed IMF payments, and closed banks, Greek voters are deciding on their economic future with Sunday’s vote. Many European leaders feel that a “yes” vote on the referendum is a vote to stay in the euro. Polls leading up to the vote showed that the vote could be close.
If Greece votes no on further austerity, crowd-funding is always an option. A British man started a “Greek Bailout” Indiegogo campaign to help raise money for Greece. With a 1.6 billion euro goal, the campaign has a ways to go to reach its goal (which is highly unlikely). But the campaign has already raised 1.8 million!
Key reports this week include: ISM Non-Manufacturing PMI at 10:00am ET, Trade Balance at 8:30am ET on Tuesday, FOMC Meeting Minutes at 2:00pm ET on Wednesday, Weekly Unemployment Claims at 8:30am ET on Thursday, and a speech on the economic outlook by Fed Chair Janet Yellen on Friday at 12:30pm ET.
Cisco Systems (CSCO) has been a nice mover this year. Since a PowerX Method Sell Signal CSCO has closed lower in each of the last 4 trading sessions.
PowerX traders are looking for an ADR Profit Target at $26.78