With most Asian stock markets rallying overnight with the Shanghai index at a one week high (Indian Sensex in contrast at a fresh 8 week low), commodity prices are bouncing with copper in particular back above $4 and a touch above its 200 day moving average. With respect to Greece, the rhetoric is getting more heated between the ECB and other EU members over what to do next. ECB member Stark said a Greek debt restructuring “would create a catastrophe” as he believes that it “would wipe out part or all the capital of the Greek banks.” The Greek drama continues to be a global focus, not because of what it means for Greece specifically as their economy is tiny but what the implications will be for Ireland and others if bond holders and thus banks are negatively impacted. Spain’s bond yields are quietly rising to a 3 week high. In the US, with mortgage rates falling to a fresh 5 month low, the MBA said refi’s in turn rose by 13.2% to a 5 month high. Unfortunately, purchases couldn’t gain any traction as they fell 3.2%. II: Bulls 45.6 v 51.1 Bears 19.6 v 18.5 Correction 34.8 v 30.4

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