Greece Stocks New Bull Market?
Stock-Markets / European Stock Markets May 06, 2011 - 05:28 AM GMTBy: Willem_Weytjens
When I saw the CDS prices for Greece debt, I was wondering “How High will they go?”
I thus started to dig deeper, and had a look at some long term charts of the Greek Stock market.
Here is what I found:
The Greek stock market is now at a major support level (horizontal green line), and also at a long term uptrend support line (red line). The market is now at 2008-2009 crisis lows.
Chart courtesy TradingEconomics.com
Here is a chart of the Greek CDS Prices (which looks a bit Bubbly, doesn’t it?): (courtesy Bloomberg.com)
What is so strange about this move? Well, it looks a lot like the Greek Stock market move from 1997 until late 1999:
Chart courtesy Omnifinance.gr
When we lay one chart on top of the other, we get this result:
If history is any guide, Greek CDS prices may start to decline sooner than later.
Is this the end of the Sovereign debt crisis? Who knows, but all good/bad things come to an end.
If it is, we can expect the Greek market to start a new Bull Market.
If it is not, and the Bottom falls out, watch out below, because there is almost no support:
Chart courtesy Omnifinance.gr
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Willem Weytjens
www.profitimes.com
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