The Thailand SET opened with a gap-up of over 9 points on Tuesday and surged 1.25% to close at 1602.54 as Greece proposed ending their standoff with its international creditors by swapping its outstanding debt for new growth-linked bonds. As far as we understand, growth-linked bonds are bonds which will have their yields tied to the Greece GDP, which was about 0.6% in 2014. 

The newly appointed Greece Finance Minister, Yanis Varoufakis, will be meeting with the European Central Bank (ECB) on Wednesday to discuss his proposal. German Chancellor Angela Merkel said that the talks with Greece could drag on until after the current round of bailout funding runs out at the end of the month. Her government is prepared to play a waiting game with Greece until April or May. 

So, it is very far from a done deal. One problem is that Greece may be “weeks” away from running out of money. People who are not familiar with Greece’s drama should know that Mr. Yanis Varoufakis was gearing up last week for a clash with the troika of the European Commission, the IMF and the ECB over the bailout agreements, as his government wants the troika to write-off of 315 billion euros of foreign debt. At least he is changing his attitude, which is a “good” thing.

Prior to yesterday's rally, a bullish candlestick pattern was formed, signaling a trend reversal. The way the pattern was formed was somewhat interesting as buyers stepped in during the final minutes of the trading day and pushed the SET from negative territory into positive territory. Nonetheless, the SET should move higher if the index can close above 1602.

The next headline risk is the U.S. non-farm payroll report on Friday.