“Good” news bad price action: Par or bust clearly in play

We had a couple of clients contact us on Friday with concerns that euro might surge on any deal to save Greece. We had to agree with them: Yes, that is exactly what we might see. But we also said we don’t want to lose the position because the deal, if there was one, wasn¡¦t going to change things longer term. The fact is this is a band aid on a gaping wound gushing tainted blood across the body of the European Monetary Union, threatening to infect the entire European banking system. Was that dramatic enough?