“The market is getting a bit confident that a Greek deal will be struck. This will remove one of the near-term uncertainties in the euro zone and some of the short euro bets will be squeezed as a result,” said RBS currency strategist Paul Robson in the Reuters story.
Meanwhile, the equity rally crushed VIX-futures products designed to track market volatility. The iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca: VXX) fell to an all-time low of $30 a share on Friday and was down 12% on the week.
The top five unleveraged ETFs the past five sessions were Global X FTSE Greece 20, iShares DJ US Home Construction (NYSEArca: ITB) and First Trust Amex Biotech (NYSEArca: FBT) with gains of at least 8%.
The bottom five unleveraged ETFs were Active Bear ETF (NYSEArca: HDGE), ProShares Short Russell 2000 (NYSEArca: RWM) and ProShares Short QQQ (NYSEArca: PSQ) with losses of 4% or more.
Next week’s economic data features reports on durable goods orders, home prices, consumer confidence, new home sales, the Fed’s beige book, pending home sales, and personal income and spending.
Full disclosure: Tom Lydon’s clients own SPY and VXX.