Remember how the stock market is a load of steaming crap the past month or two? If you haven't been keeping up to date, all you really need to know is the European Union is trying to come up with a solution to bail out Greece while also appeasing all of the EU member nations. The problem is every reporter on the planet is trying to find any hint of what is going to happen and as a result we are getting bombarded with rumors that all end up being denied shortly after. The end result is a Dow Jones index that makes 800 point swings higher, and then back down, in less than two weeks. If you're trying to invest in this market and you're not a headline-reading high frequency trading bot you really have no chance.
Today, the rumor was that the EU has come up with a plan that involves Greek debt holders taking a 50% haircut on their holdings, along with trillion euro expansion of the European bailout fund. Not a chance in hell I'm falling for this one again. Anyone that has tried to trade on rumors just like this in the last month have been given a Floyd Mayweather-esque sucker punch. If you were really paying close attention, you would've noticed German Finance Minister Schaeuble denying any fund expansion plans. And let's face it, Germany is running the show here. Apologies to all who tried to jump in on what is most likely to be another devastating market headfake.
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