Coming Up On Wall Street

Good morning. It is 63 degrees and I think they call that object up in the sky the sun, not positive because it seems like the last time it was out was eons ago. The long rain has temporarily subsided. Looking at a dry day means that I will be working on the exterior of this old house. I have many things to do to prepare for the winter. There is painting, carpentry work, masonry work, its all got to get done. The entrance landing to the front door is almost completed, that's probably where I start today.

As we know the stock market is in a volatile period. The focus of that volatility right now, and this could shift, is back to the insolvency issues in the Eurozone. This is supplanting the fear of another recession here in the USA. Recession fears have not gone away, they are simply on a lower burner. We are reading that there is a rumor that Greece will officially default this weekend. This is a big deal. Recall that several of the world's largest top 20 economies are in the zone. We are heading into the unknown as it were.

The predictions seem to run along the lines that the wide swings up and down that we have seen these last few weeks will continue right along. So its going to be a roller coaster ride up until clarity overtakes volatility. In this case clarity revolves around where the Eurozone mess ends up. From what we are reading that period of clarity is a ways off. The downside is that if that clarity shows serious economic distress of the unresolvable type, then the stock market starts dropping.

Reuters: Stocks primed for more volatility

More volatility is almost guaranteed...


Recent market trading patterns and options activity also suggest August's roller-coaster ride will keep apace throughout September.


"...the rumors are still out there that this is the weekend Greece goes bust."