With the only real catalyst on the horizon not due for nearly one month - that would be the Greek elections of June 17 which while presented as the make or break event for the Eurozone, we believe will be once again inconclusive, resulting in no actual government, but merely more elections down the road - here is the daily sequence of events of what we can expect: i) Europe releases definitive rumor that everyone is preparing for a Greek exit full of bombastic jargon and details of how Greece will be annihilated if it does exit the EMU; ii) immediate election polls are taken; iii) if "anti-memorandum" Syriza support is not materially lower, rumor is promptly withdrawn for the day, only to be unleashed the next day with even more bombastic end of world adjectives describing the 9th circle of hell Greece will enter unless the Greek people vote "for" the pro-bailout parties, "for" the Euro, and "for" a perpetuation of the status quo; iv) Rinse; v) repeat. Which means one thing: just as the most actively watched live update on June 17 will be the Greek parliament seat map as voting is tallied, so each and every day from now until then, everyone's attention will be glued to daily update from Greek election polls.
Now courtesy of Reuters, we now have a handy, bookmarkable interactive chart for everyone's convenience to keep track of this data. And while we still believe the actual result will be meaningless, as a coalition government, either pro or against bailout, will be unformable, we are certain that the second we read that Syriza support is waning (one day, only to surge the next), the EUR, courtesy of its record short interest, and all related risk assets will soar. Keep a close eye on this chart.
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