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Greece Deal More Important Than Goldman

The new reputational/political risk associated with the market in key stocks (BP , Goldman , Massey ) is the biggest story of the week.

A good example of the uncertainty in the trading community is a note sent out by Buckingham Research this afternoon regarding Goldman. It is titled: Litigation/Political Risk Too Difficult to Handicap.

They say: "while we are comfortable analyzing the fundamentals of the company, we believe it is nearly impossible for us to adequately handicap the outcome of these probes."

Goldman is important, but a Greek deal is the key story of the weekend. This from former NYSE specialist Robert Hardy, who traded European banks for years:

"It had better be a big shock and awe plan or the EU will be immediate toast...The Germans have to make it work now or all their EU customers will be out of business. The polls in Germany indicate that if the German, French and other large Euro banks are part of the bailout as providers the public will go along with the deal. That is I think a big deal!"

Meanwhile note that some big industrials like Caterpillar , Cummins and Fluor are a good part of the weakness in the S&P 500, as are retailers like JC Penney and Abercrombie both down about 5 percent.

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