PSEi 4,260.41. -73.31 points. -1.72%.
Like everyone else, I was blindsided by Greek Prime Minister George Papandreou’s sudden call for a referendum. The Greek cabinet has since voted unanimously in favor of this. This move reopens the door to a possible full Greek default, should Greek voters decline further bailouts and austerity measures – the most likely outcome if street demonstrations are anything to go by.
All things considered, the PSEi drop today was relatively not so harsh. In comparison, the past 2 trading days, the Dow Jones dropped 573.15 points (-4.69%), the German DAX lost 511.68 points (-8.06%), and the French CAC declined 280.3 points (-8.37%). We only lost 1.72%.
Just when you thought it was safe to get back in the water, Greece does its best Jaws 2 impersonation.
Luckily, most of my funds remain in cash. I do have my 3 active bets in local stocks. The profit taking exits and cut loss stops for those were set prior to the trades being taken. I’ll just let them trade themselves out. Whether they end in profit taking exits or loss cutting stops is up to the markets.