Feels like we're in for many more months of having markets driven by political posturing and headlines.
New EU Greek debt plan may even have legs for a few months (or may fall apart at any moment) but it will inevitably face challenges from voters, the German high court and the reality that the southern countries are in a debt trap that they can't get out of regardless of terms and particularly with enforced austerity starving growth.
US looks to probably pass some form of debt ceiling extension or subterfuge around it but without a budget and wrangling on it could go on for months.
No resolution for either but for now "the markets" actually like it- right when they're about to fall apart someone announces that they have fixed the world and the algobots squeeze the bejeebers out of shorts.
This is a sick and dysfunctional thing but expect it to continue- maybe as the new norm.
Just a note- Despite the ability to squeeze shorts on anything that can be remotely regarded as "better than expected" economic data, employment, housing and growth factors are not showing good trends. The only positive thing to report is that some US multinationals are making money like crazy.
On grains- don't know how bad the US crop is nicked up or how it finishes but it is becoming clear that there will be no stocks build globally this year. That means we'll have selling opportunities ahead (caveat, global liquidity squeeze, probability????).
That's the good news. The bad news that another year passes without a stocks build and the possiblity remains that we, and the world, have a really bad crop sometime and blow the current US and world agricultural system to smithereens.
