Greece Stock Index Tests March 2009 Low, NBG Downgraded By JP Morgan to Sell, Almost at $2 Low

DJ Greece Index
First Dubai hit the March 2009 low back in December (2009), now add Greece to the list.  Below are charts of the Dow Jones Greece Stock Index ($GRDOW) and Greece (Athens) General Share ($ATG) from StockCharts.com.  The Greek indexes are still in a descending channel but they could bounce at support. $ATG is just above the March low.  I need to see Greece base out here and violate the channel with crisp green volume before turning bullish.  This action could be pricing in a double-dip recession for Greece.  The European Union Labor Chief even warned of a double dip recession in Europe (WSJ).  With Greek austerity measures (lower wages, higher taxes) and banks tightening up again, there could be a double-dip right around the corner. Remember, indexes are forward looking and reflexive.

Greek public finances will be a mess for 2 years until they restructure (WSJ).  Maybe when EUR/USD (Euro) hits .85 they'll have a crazy export boom.  It is also interesting that JP Morgan downgraded the National Bank of Greece ($NBG) to "underweight".  Zero Hedge explains the downgrade: After 70% Plunge, JPMorgan Cuts National Bank Of Greece From Buy To Sell.   The charts need to see sustained RSI (relative strength index above 50 (look at the examples).  NBG closed at $2.54 on Thursday post downgrade and $2 is the next support level (March 2009 low).  Also NBG Q1 profits are out:
ATHENS (Dow Jones)--National Bank of Greece SA (NBG), Greece's largest lender by assets, said Wednesday that first-quarter net profit fell a larger-than-expected 93%, as steep trading losses, higher provisions and a special tax weighed on earnings.

"The challenge for the rest of the year is to focus on managing the quality of our loan book in Greece," Chief Executive Officer Apostolos Tamvakakis said. "Likewise, it is important that costs be managed effectively.
(read full article at WSJ)

Dow Jones Greece Stock Index (StockCharts.com)

Greek General Share Index (Stockcharts.com)

NBG (National Bank of Greece)

Related Posts

Comments

HTML Comment Box is loading comments...