NEW YORK (TheStreet) -- Of all the realistically possible outcomes of the Greek election, the worst is more uncertainty, yet not enough risk to provide central banks of the world sufficient cover for coordinated action. This is exactly what just happened.The pro-euro New Democrat came up on top, with a slight lead over the anti-euro (not really their principle, but this is what matters to the world) Syriza. The moderately pro-euro Pasok came in as a distant third. In theory, the New Democrat and Pasok could form a coalition government. But they just re-affirmed that they won't participate in the coalition unless the Syriza is included. The risk for the no-government scenario, therefore yet another election, has risen.
Similar to last Monday, June 11, if there's a rally at the open, it's probably better faded unless you are very quick. I would once again look to the bond market ( TLT) for more reliable indication or confirmation. Looking ahead a bit further, the G20 meeting might provide some completely false hope but, as usual, will prove once again to be a complete farce, as always. There seems to be a continued drumbeat on QE3 from the FOMC meeting but I believe it would also turn out to be a disappointment for QE addicts. The outcome of Greek coalition government should be clearer in a few days; otherwise it would mean more uncertainty and the risk of yet another election. So, a "hopium"-based rally could very well last a few days; but I would be enthusiastically on the short side when disappointment sets in. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.