Just as the Euro led the market today by gapping up on the passage of the Greek vote, as I suspected, it's now leading the way down and for more then 1 reason.
First the market HATES uncertainty and the lack of comments or at least constructive comments from Greece's task masters today, caused the initial uncertainty in the FX market which effected the stock market (by killing momentum and sending the market lower in to the close). If you are familiar with candlestick charting (If you are not and you want to learn, Steve Nissan's books are excellent), you understand that the market is very much like physics in certain ways, such as "A body in motion...." and when a market loses momentum, it opens itself up to a change in direction. Candlesticks like the Harami, Doji, Hammer, Shooting Star, are all examples of a market losing momentum either to the upside or downside. If you use candlestick chart, be sure to look not only at the daily, but the weekly, monthly and yearly as well, you'll uncover some clues to the market by looking where few others look.
Now we have some more news and at a brisk pace, although not unexpected as we touched on it today. Specifically, my gut feeling is that the Trokia (which at this point I consider to be more then the EU/ECB/IMF, but the northern countries such as Finland, the Netherlands, Luxembourg and last but certainly far from least, Germany) will keep making demands until they break Greece and force them out of the Euro-zone and in to default. The Troika as a whole has expressed on numerous occasions that they have no intention of forcing Greece out of the Euro, but just like a coward manager, rather then being direct and firing an employee, they choose to make that employee's life unbearable until the employee quits. That's not an elegant analogy, but I think it's pretty close to accurate. I pretty much said this today when I mentioned I thought they (Troika) would keep moving the line in the sand to ultimately save face and say "We did everything we could, but they just wouldn't go along".
As for the events that are causing the Euro to look like this...
As for the news, and after a slow day, it's coming in fast and furious:
"Finland may sign a deal on securing collateral in exchange for its commitment to Greece’s second bailout in the “next few days,” Finance Minister Jutta Urpilainen said on Monday."
"A vote in parliament on Finland’s participation in the bailout could follow next week" Tick, Tick, Tick, the clock is running out. Greece does not have until March 20th to get a deal done, the deal must be done yesterday to get all of the bailout logistics in place.
"Finland, one of four AAA-rated euro members, last year became the only nation in the currency bloc to secure extra assurances that its commitments to a second Greek rescue be repaid by insisting on collateral.
And to think, I haven't even started on the internals today which weren't very good.