Best of the Week
Most Popular
1. Five Charts That Show We Are on the Brink of an Unthinkable Financial Crisis- John_Mauldin
2.Bitcoin Parabolic Mania - Zeal_LLC
3.Bitcoin Doesn’t Exist – 2 - Raul_I_Meijer
4.Best Time / Month of Year to BUY a USED Car is DECEMBER, UK Analysis - Nadeem_Walayat
5.Labour Sheffield City Council Election Panic Could Prompt Suspension of Tree Felling's Private Security - N_Walayat
6.War on Gold Intensifies: It Betrays the Elitists’ Panic and Augurs Their Coming Defeat Part2 - Stewart_Dougherty
7.How High Will Gold Go? - Harry_Dent
8.Bitcoin Doesn’t Exist – Forks and Mad Max - Raul_I_Meijer
9.UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall - GoldCore
10.New EU Rules For Cross-Border Cash, Gold Bullion Movements - GoldCore
Last 7 days
Stock Index Trend Trade Setups for the SP500 & NASDAQ - 22nd Jan 18
Stock Market Deceleration / Distribution - 22nd Jan 18
US Markets vs Govt Shutdown: Stock Markets at all time highs - 22nd Jan 18
Land Rover Discovery Sport - 1 Month Driving Test Review - 22nd Jan 18
Why should you use high-quality YouTube to mp3 converter? - 22nd Jan 18
Silver As Strategic Metal: Why Its Price Will Soar - 21st Jan 18
Stocks, Gold and Interest Rates Three Amigos Ride On - 21st Jan 18
Why Sometimes, "Beating the S&P 500" Isn't Good Enough - 21st Jan 18
Bunnies and Geckos of Sheffield Street Tree Fellings Protests Explained - 21st Jan 18
Jim Rickards: Next Financial Panic Will Be the Biggest of All, with Only One Place to Turn… - 20th Jan 18
Macro Trend Changes for Gold in 2018 and Beyond - Empire Club of Canada - 20th Jan 18
Top 5 Trader Information Sources for Timely, Successful Investing - 20th Jan 18
Bond Market Bear Creating Gold Bull Market - 19th Jan 18
Gold Stocks GDX $25 Breakout on Earnings - 19th Jan 18
SPX is Higher But No Breakout - 19th Jan 18
Game Changer for Bitcoin - 19th Jan 18
Upside Risk for Gold in 2018 - 19th Jan 18
Money Minute - A 60-second snapshot of the UK Economy - 19th Jan 18
Discovery Sport Real MPG Fuel Economy Vs Land Rover 53.3 MPG Sales Pitch - 19th Jan 18
For Americans Buying Gold and Silver: Still a Big U.S. Pricing Advantage - 19th Jan 18
5 Maps And Charts That Predict Geopolitical Trends In 2018 - 19th Jan 18
North Korean Quagmire: Part 2. Bombing, Nuclear Threats, and Resolution - 19th Jan 18
Complete Guide On Forex Trading Market - 19th Jan 18
Bitcoin Crash Sees Flight To Physical Gold Coins and Bars - 18th Jan 18
The Interest Rates Are What Matter In This Market - 18th Jan 18
Crude Oil Sweat, Blood and Tears - 18th Jan 18
Land Rover Discovery Sport - Week 3 HSE Black Test Review - 18th Jan 18
The North Korea Quagmire: Part 1, A Contest of Colonialism and Communism - 18th Jan 18
Understand Currency Trade and Make Plenty of Money - 18th Jan 18
Bitcoin Price Crash Below $10,000. What's Next? We have answers… - 18th Jan 18
How to Trade Gold During Second Half of January, Daily Cycle Prediction - 18th Jan 18
More U.S. States Are Knocking Down Gold & Silver Barriers - 18th Jan 18
5 Economic Predictions for 2018 - 18th Jan 18
Land Rover Discovery Sport - What You Need to Know Before Buying - Owning Week 2 - 17th Jan 18
Bitcoin and Stock Prices, Both Symptoms of Speculative Extremes! - 17th Jan 18
So That’s What Stock Market Volatility Looks Like - 17th Jan 18
Tips On Choosing the Right Forex Dealer - 17th Jan 18
Crude Oil is Starting 2018 Strong but there's Undeniable Risk to the Downside - 16th Jan 18
SPX, NDX, INDU and RUT Stock Indices all at Resistance Levels - 16th Jan 18
Silver Prices To Surge – JP Morgan Has Acquired A “Massive Quantity of Physical Silver” - 16th Jan 18
Carillion Bankruptcy and the PFI Sector Spiraling Costs Crisis, Amey, G4S, Balfour Beatty, Serco.... - 16th Jan 18
Artificial Intelligence - Extermination of Humanity - 16th Jan 18
Carillion Goes Bust, as Government Refuses to Bailout PFI Contractors Debt and Pensions Liabilities - 15th Jan 18
What Really Happens in Iran?  - 15th Jan 18
Stock Market Near an Intermediate Top? - 15th Jan 18
The Key Economic Indicator You Should Watch in 2018 - 15th Jan 18
London Property Market Crash Looms As Prices Drop To 2 1/2 Year Low - 15th Jan 18
Some Fascinating Stock Market Fibonacci Relationships... - 15th Jan 18
How to Know If This Stock Market Rally Will Continue for Two More Months? - 14th Jan 18
Everything SMIGGLE from Pencil Cases to Water Bottles, Pens and Springs! - 14th Jan 18
Land Rover Discovery Sport Very Bad MPG Fuel Economy! Real Owner's Review - 14th Jan 18

Market Oracle FREE Newsletter

6 Critical Money Making Rules

The Stock Market in a “Technical Bull”, Fascinating Juncture

Stock-Markets / Stock Markets 2013 Feb 05, 2013 - 10:10 AM GMT

By: Christopher_Quigley

Stock-Markets

Prime Minister David Cameron stalls the “European Project”:
Late last month one of the most important speeches on Europe ever  made by a British Prime
was presented by David Cameron to a central London audience at an event hosted by Bloomberg. The speech sent shock-waves throughout the European establishment.
Salient excerpts are quoted below courtesy of  “The Independent.co.uk”.


In essence, Mr. Cameron argued that Europe was not working and that it must change. To achieve the changes required he announced that Great Britain would renegotiate the totality of its relationship with the European Union. Following this renegotiation he proposed that should a Conservative Government be re- elected circa 2015 it would present a referendum to the British people. Should the people of Britain elect to do so, Britain would leave the union.  Irish Prime Minister Enda Kenny, who currently heads the European Presidency, stated that if this proposition came to fruition “it would be a “catastrophe”.

Many who were expecting the speech and were somewhat prepared were still astonished at  Cameron’s bold proposal that Britain might actually walk away from the EU.

Mature observers are of the view that there is no real crisis. They say that the possibility of the Conservative Party actually winning the next British general election are remote. Therefore they reckon the proposed referendum will never see the light of day. I am not so sure crisis wise as I believe the law of “unintended consequences” may begin to apply.

At the very least the fact that Britain wishes to withdraw powers from Europe means that for the next two years, while Cameron is in power, the whole European integration process will be thrown into abeyance. Given that he refuses to countenance any further abrogation of English power to Brussels he has basically placed the whole of Euroland  “on hold”. Will Germany and France stand for this and allow any renegotiation? I don’t think so. The EU commission has no structure or mandate in place to execute such renegotiation. Thus from the get-go nobody in Europe actually knows how the British Prime Minister plans to proceed. This is where I see the problem. As Britain digs its heels in, to manipulate renegotiation, the rest of the Union may go on its merry way introducing new legislation. If Cameron is forced to veto such action the tensions within the Council of Ministers will rise. If the management of the European Union becomes more and more dysfunctional. Britain leaving the Union may become a self-fulfilling prophesy.

For Ireland the British position is particularly unwelcome. Ireland shares a border with England.  The English market is the largest single Irish export destination. Should Britain actually leave the EU it is difficult to see how Ireland could stay within the European fold. Yet one of the main reasons why Ireland is the location of choice for many American multi-nationals is due of its central place within Europe.  Prime Minister Kenny will  have his work cut out over the next two years trying to balance this conundrum.

All in all Mr. Cameron’s speech has certainly thrown “the cat among the pigeons”. It appears that rather than getting its “act together” the European Project is becoming more and more complex.  Thus in addition to the problems of chronic structural unemployment, lack of growth, a banking collapse and a failing Euro, a new layer of uncertainty has now been added. European politicians are beginning to show signs of exhaustion thus it is no wonder that among the major online bookies the odds of a final breakup of the European Union grow day by day.
 
“While there are some countries within the EU which are doing pretty well. Taken as a whole, Europe’s share of world output is projected to fall by almost a third in the next two decades. This is the competitiveness challenge – and much of our weakness in meeting it is self-inflicted.

Complex rules restricting our labour markets are not some naturally occurring phenomenon. Just as excessive regulation is not some external plague that's been visited on our businesses.
These problems have been around too long. And the progress in dealing with them, far too slow.

So let us use this moment, as the Dutch Prime Minister has recently suggested, to examine thoroughly what the EU as a whole should do and should stop doing.

In Britain we have already launched our balance of competences review – to give us an informed and objective analysis of where the EU helps and where it hampers.

Put simply, many ask “why can’t we just have what we voted to join – a common market?”

(The British people) see Treaty after Treaty changing the balance between Member States and the EU. And note they were never given a say.

Simply asking the British people to carry on accepting a European settlement over which they have had little choice is a path to ensuring that when the question is finally put – and at some stage it will have to be – it is much more likely that the British people will reject the EU.

That is why I am in favour of a referendum. I believe in confronting this issue – shaping it, leading the debate. Not simply hoping a difficult situation will go away.

The next Conservative Manifesto in 2015 will ask for a mandate from the British people for a Conservative Government to negotiate a new settlement with our European partners in the next Parliament………. It will be a relationship with the Single Market at its heart.

And when we have negotiated that new settlement, we will give the British people a referendum with a very simple in or out choice. To stay in the EU on these new terms; or come out altogether.

It will be an in-out referendum.

Legislation will be drafted before the next election. And if a Conservative Government is elected we will introduce the enabling legislation immediately and pass it by the end of that year. And we will complete this negotiation and hold this referendum within the first half of the next parliament.

It is time for the British people to have their say. It is time to settle this European question in British politics.

If we leave the EU, we cannot of course leave Europe. It will remain for many years our biggest market, and forever our geographical neighbourhood. We are tied by a complex web of legal commitments.

If we left the European Union, it would be a one-way ticket, not a return.”

The Stock Market in a “Technical Bull”:

The market at the moment is at a fascinating juncture.

While the fundamental picture in the world economy is very unstable the market is powering higher. The technical breakout on the Dow Transports, which formed a “ line” throughout most of 2012, was so strong the first few trading days in January the Industrials and the broader market took heart and followed suit.

With the prospect that the magnificent bond bull run is finally coming to an end, trillions of “coupon dollars” are beginning to seek a new home and accordingly are starting to target equities. If the rising stock market brings back American consumer confidence and if this confidence helps the real estate market recover, all will be well.

However, if the fundamentals do not oblige great risk will have been priced into the market going forward. I therefore continue to advise clients to solidly purchase equities but wait until corrections occur before investing. I recommend that investors consider participating through index ultras at the moment because while the market continues to plow higher many fund managers are still unconvinced. Thus while the broad indices are strong many great growth stocks are still behaving bearishly. Investing in the Index ultras solves this problem.

Dow Transports: Weekly


Dow Industrials: Weekly


By Christopher M. Quigley

B.Sc., M.M.I.I. Grad., M.A.
http://www.wealthbuilder.ie

Mr. Quigley was born in 1958 in Dublin, Ireland. He holds a Bachelor Degree in Accounting and Management from Trinity College Dublin and is a graduate of the Marketing Institute of Ireland. He commenced investing in the stock market in 1989 in Belmont, California where he lived for 6 years. He has developed the Wealthbuilder investment and trading course over the last two decades as a result of research, study and experience. This system marries fundamental analysis with technical analysis and focuses on momentum, value and pension strategies.

Since 2007 Mr. Quigley has written over 80 articles which have been published on popular web   sites based in California, New York, London and Dublin.

Mr. Quigley is now lives in Dublin, Ireland and Tampa Bay, Florida.

© 2013 Copyright Christopher M. Quigley - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Christopher M. Quigley Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules