If I had to describe today’s market in one word it would be: indecision. Although the market closed lower, it was mostly indecisive. There were many rumors concerning the Cypress situation – all indecisive in the end.
While the news/decision for Cyprus as a whole may be indecisive as of yet, the reality for its citizens is final: there is little-to-no-money in the ATMs. The news wires carried the following during the day…
*Cyprus Popular Bank announces restrictions on ATM withdrawal to EUR 260 per customer per day
*CYPRUS POP SETS DAILY LIMIT OF EU260 ON WITHDRAWALS:KATHIMERINI
In order to keep the deal alive, the Eurozone nannycrats came up with a new idea: allow small depositors to keep their money, while large depositors get massively screwed by 40%. Naturally, bondholders of Cyprus banks would lose NOTHING.
It’s almost Friday and the EU has said that Cyprus has until sometime Monday to decide if savers should get raped before the speculators who hold Cypriot-bank bonds. Another vote is scheduled for Friday (will it be cancelled?) so as to not upset the almighty stock market over a weekend.
Will the new vote pass? Or will the first country in the doomed Euro exit its slavery? I suppose the answer lies in the question: Have the appropriate funds been deposited in private Swiss bank accounts for those voting politicians in Cyprus? If so, the vote is to fold like a lawn chair in favor of the Eurozone nannycrats.
In other news – there were reports of riots in Cyprus today at many bankrupt banks. Surely this will be ignored by the so-called political elite.
Trade well and follow the trend, not the perma-bull OR perma-bear "experts."
Best Trades to you,
Founder & President- Trading Advantage