Economissed: Probably want to keep an eye on theSquid…

A long, long , long time ago (like 1 & 1/2 bonuses) Greece had a little trouble accounting for some swap issues……..despite that, Gordon Brown was and David Cameron still is a fan (among many in the powers that be) so who better to help with the rebuilding of EU Debt market confidence than the inimitable Goldman Sachs. Only one thing on the agenda today obviously but has there already been a big clue in terms of price movement anywhere technically?

Well – there was always bound to be some risk on trades over the last 48 hours – if only because of the environment of extreme pessimism – why wouldn’t you price some potentially better news? But how much better? Cue Goldman Sachs – forget the set of dismal numbers, they no doubt highlight a drop in business form Europe.

I’m sure Greece for one will be delighted to hand over another load of consultation fees…nonetheless…when the going gets tough, the tough tend to call Goldies… But is there any coming back after this? Possibly, if the “solvency of sovereign states is no longer to be taken for granted” that according to Italian central bank chief and future head of the European Central Bank, Mario Draghi…..2002-2005 GOLDMAN SACHS INTL VICE CHAIRMAN:EUROPE. 2 charts follow – Demark daily sequential and combo counts highlighting exhaustion to the downside – and various indicators on the last pointing to a move higher….& all this on the eve of the EU summit no less. I for one would be amazed if Merkel and Co. come up with the goods without approval back in the motherland – but it does make it a little more interesting….

Goldman-the-vanpire-squid-Sacs:

(click for sharper image)

(click for sharper image)

The Economissed is produced by Paul Wiggins head of Futures & Options at Market Securities in London.

Charts courtesy of Bloomberg

Related posts:

1. The Economissed: The Italian Job
2. Gold and Precious Metals Will Lead Commodity Returns in 2011
3. Risk of Inflation says City Economists
4. The Economissed: The good ship QEIII
5. The Economissed: Time to Take Your Medicine…

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Posted by Paul Wiggins on Jul 21 2011. Filed under Analysis, Markets. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry