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Thursday, April 22, 2010

Intraday update

And the news keep coming...

The 2 year notes for Greece have hit 10% today. And Moody's cut Greece's debt rating as well.

And the yield curve of the greek bonds are as follow:

So we are now in the presence of an inverted yield curve from the 2YR maturity onward.

In other words, a default is expected in the long term, but not without a bailout first in the short term.

Edit: I had seen this pattern develop a long time ago, but now is even more noticeable the perfect breakout of the neckline followed by a test of the neckline which failed to break, making this H&S pattern a valid one, with target at around 1175 points on the Greek index.

This means a decline of 40'ish % still to follow on the Greek exchange ! To be honest this H&S is super perfect and a beauty to be seen.
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