Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Trading Natural Gas As The Season Changes - 16th Sep 19
Cameco Crash, Uranium Sector Won’t Catch a break - 16th Sep 19
These Indicators Point to an Early 2020 Economic Downturn - 16th Sep 19
Gold When Global Insanity Prevails - 16th Sep 19
Stock Market Looking Toppy - 16th Sep 19
Is the Stocks Bull Market Nearing an End? - 16th Sep 19
US Stock Market Indexes Continue to Rally Within A Defined Range - 16th Sep 19
What If Gold Is NOT In A New Bull Market? - 16th Sep 19
A History Lesson For Pundits Who Don’t Believe Stocks Are Overvalued - 16th Sep 19
The Disconnect Between Millennials and Real Estate - 16th Sep 19
Tech Giants Will Crash in the Next Stock Market Downturn - 15th Sep 19
Will Draghi’s Swan Song Revive the Eurozone? And Gold? - 15th Sep 19
The Race to Depreciate Fiat Currencies Is Accelerating - 15th Sep 19
Can Crypto casino beat Hybrid casino - 15th Sep 19
British Pound GBP vs Brexit Chaos Timeline - 14th Sep 19
Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - 14th Sep 19
War Gaming the US-China Trade War - 14th Sep 19
Buying a Budgie, Parakeet for the First Time from a Pet Shop - Jollyes UK - 14th Sep 19
Crude Oil Price Setting Up For A Downside Price Rotation - 13th Sep 19
A “Looming” Recession Is a Gold Golden Opportunity - 13th Sep 19
Is 2019 Similar to 2007? What Does It Mean For Gold? - 13th Sep 19
How Did the Philippines Establish Itself as a World Leader in Call Centre Outsourcing? - 13th Sep 19
UK General Election Forecast 2019 - Betting Market Odds - 13th Sep 19
Energy Sector Reaches Key Low Point – Start Looking For The Next Move - 13th Sep 19
Weakening Shale Productivity "VERY Bullish" For Oil Prices - 13th Sep 19
Stock Market Dow to 38,000 by 2022 - 13th Sep 19 - readtheticker
Gold under NIRP? | Negative Interest Rates vs Bullion - 12th Sep 19
Land Rover Discovery Sport Brake Pads and Discs's Replace, Dealer Check and Cost - 12th Sep 19
Stock Market Crash Black Swan Event Set Up Sept 12th? - 12th Sep 19
Increased Pension Liabilities During the Coming Stock Market Crash - 12th Sep 19
Gold at Support: the Upcoming Move - 12th Sep 19
Precious Metals, US Dollar, Stocks – How It All Relates – Part II - 12th Sep 19
Boris Johnson's "Do or Die, Dead in a Ditch" Brexit Strategy - 11th Sep 19
Precious Metals, US Dollar: How It All Relates – Part I - 11th Sep 19
Bank of England’s Carney Delivers Dollar Shocker at Jackson Hole meeting - 11th Sep 19
Gold and Silver Wounded Animals, Indeed - 11th Sep 19
Boris Johnson a Crippled Prime Minister - 11th Sep 19
Gold Significant Correction Has Started - 11th Sep 19
Reasons To Follow Experienced Traders In Automated Trading - 11th Sep 19
Silver's Sharp Reaction Back - 11th Sep 19
2020 Will Be the Most Volatile Market Year in History - 11th Sep 19
Westminister BrExit Extreme Chaos Puts Britain into a Pre-Civil War State - 10th Sep 19
Gold to Correct as Stocks Rally - 10th Sep 19
Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - 10th Sep 19
Stock Market Sector Rotation Giving Mixed Signals About The Future - 10th Sep 19
The Online Gaming Industry is Going Up - 10th Sep 19
The Unknown Tech Stock Transforming The Internet - 10th Sep 19
More Wall Street Propaganda - 10th Sep 19
Stock Market Price Structure Still Suggests We Are Within Volatile Rotation - 9th Sep 19
Stock Market Still Treading Water - 9th Sep 19
Buying Pullbacks in Silver & Gold - 9th Sep 19
Government Spending - The High Price of a "Free Lunch" - 9th Sep 19
Don't Worry About a Recession - 9th Sep 19
Large Drop in Stocks, Big Rally in Gold and Silver - 9th Sep 19

Market Oracle FREE Newsletter

The No1 Tech Stock for 2019

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

© 2005-2019 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