• Free Book
  • Store
    • Books
    • Free First Chapters
    • Free Newsletters
  • Recent Articles

TradingMarkets.com

Quantified Stock Market Trading Strategies & Systems

  • Home
  • New Trading Research
  • Education
    • Articles
      • Connors Research
      • ETFs
      • Options
      • Stocks
      • Volatility
    • Trading Lessons
    • Connors Research
    • Glossary
    • Interview Archive
    • Videos
  • Python
  • Quantamentals
    • Quantamentals: The Next Great Forefront of Trading and Investing
    • Quantamentals Resources
  • Courses
  • Store
    • New Book! The Alpha Formula
    • “Buy The Fear, Sell The Greed” – Best Seller!
    • Swing Trading College 2019
    • Trading Books and Guidebooks
    • Street Smarts
    • Online Trading Courses
    • Private Mentoring with Larry Connors
    • Customized Trading Research
    • Amibroker Strategy Add On Modules
You are here: Home / Stocks / Commentary / Saving Greece & 3 Bearish PowerRatings Stocks

Saving Greece & 3 Bearish PowerRatings Stocks

April 8, 2010 by David Goodboy

The financial woes of the Greek Isles are always mentioned as one of the causes of recent stocks sell offs in the United States. Investors fear a financial contagion spreading from this idyllic yet troubled land.

A domino effect taking down second and third tier economies around the globe is the prime concern.   Even an economy as relatively small as Greece can have far reaching effects in this interconnected world. Talking with a variety of investors, I have discovered that most do not understand what is happening in Greece and the steps being taken to rescue this injured economy.

Debt is the primary cause of Greece’s troubles. Years of unfettered spending, during the global boom, led to a deficit higher than is permitted in the Eurozone. The explosive growth allowed Greece to effectively hide the skyrocketing debt with a little accounting sleight of hand.

Imagine using credit cards to pay off credit cards, as a personalized example of what occurred. As long as you keep getting credit offers in the mail, you can maintain the illusion of paying your debt and staying solvent. However, any stoppage of the credit offers would send you spiraling quickly off a cliff.

Greece’s credit rating, similar to a FICO or personal credit score for economies, was downgraded to the lowest in the Eurozone. This downgrade in debt rating prevented Greece from getting more capital from investors. The country was viewed as simply being too risky for prudent capital deployment.

Greek debt is currently at $413.6 billion. This is greater than the entire economy. Debt exceeds income by 12.7%. Using our personal example, this would be called being “upside down” in the consumer space.

As with any entity finally hit with the reality of excessive debt, Greece has started to slash expenses and raise income via taxation. To make matters worse, Greece’s population is rebelling against the changes with massive strikes.

Fortunately, 16 countries in the Eurozone have agreed to stand ready to bail out Greece when needed. Each country will contribute based on their GDP and population. Under this guideline, Germany and France will lead the effort. Around $26.8 billon dollars is planned on being raised by this unified effort. However, issues have arisen with this plan and are presently being debated.

This situation has hurt the Euro and put fear into equity markets around the world.  I am confident that Greece will be saved but it may be tough road to travel. Be ready for additional shock waves before the final solution is finally reached.

Here are 3 bearish PowerRatings stocks for your short term watch lists:

^PPD^

^AIG^

AIG chart

^HOG^

Learn more strategies for trading stocks in the short term with a free trial to our PowerRatings! The highest rated stocks have outperformed the average stock by a margin of more than 14.7 to 1 after five days! Click here to launch your free PowerRatings trial today!

The Holy Grail of Indicators – Click here to learn the best trading indicator and why you should avoid the popular 14-period RSI.

David Goodboy is Vice President of Business Development for a New York City based multi-strategy fund.

Filed Under: Commentary, Recent Tagged With: PowerRatings, Short Term Traders, stock strategies, Stock Strategies for Short Term Traders

Buy The Fear, Sell The Greed

Buy The Fear, Sell The Greed

Swing Trading College

New Book From Larry Connors and Chris Cain, CMT – "The Alpha Formula; High Powered Strategies to Beat The Market With Less Risk"

We’re excited to announce the release of a new investment book written by Larry Connors and Chris Cain, CMT. The book, “The Alpha Formula; High Powered Strategies to Beat The Market With Less Risk “ combines… Hedge fund legend Ray Dalio’s brilliant insight into combining uncorrelated strategies… With new, minimally correlated, quantified, systematic strategies to trade… [Read More]

Buy The Alpha Formula Now

Connors Research Traders Journal (Volume 57): 7 Real-World Reasons Why Short Strategies Should Be Included In Your Portfolio

In our new book, The Alpha Formula – High Powered Strategies to Beat the Market with Less Risk, we show the benefits of including short-strategies in your portfolio. As a reminder, building portfolios should be based on First Principles – otherwise known as truths. These truths are: Markets Go Up Market Go Down Markets Go… [Read More]

Company Info

The Connors Group, Inc.
185 Hudson St., Suite 2500
Jersey City, NJ 07311
www.cg3.com

About Us

About
Careers
Contact Us
Link To Us

Company Resources

Help
Privacy Policy
Return Policy
Terms & Conditions

Properties

TradingMarkets
Connors Research

Connect with TradingMarkets

Contact

info@cg3.com
973-494-7311 ext. 628

Free Book

Short Term Trading Strategies That Work

© Copyright 2020 The Connors Group, Inc.

Copyright © 2023 · News Pro Theme on Genesis Framework · WordPress · Log in