Best of the Week
Most Popular
1.UK Housing Market Affordability, House Prices Momentum and Trend Forecast - Nadeem_Walayat
2.Gold and Silver Sector Big Green Light and Low Risk Entry Setup... - Clive_Maund
3.UK Regional House Prices, Cheapest and Most Expensive Property Markets - Nadeem_Walayat
4.US Dollar, CRB, Oil, Gas, Copper and Gold - The Chartology of Deflation - Rambus_Chartology
5.Silver Price, COT, US Dollar Updates and More - Dan_Norcini
6.Will Gold Price Drop Below $1000 Soon? - Brad_Gudgeon
7.UK Regional House Prices Analysis - Video - Nadeem_Walayat
8.Crude Oil Swinging For The Fences - A 20 to 1 Option Play - Bob_Kirtley
9.Fed’s Tarullo: U.S. Interest Rates Liftoff Should Wait for Signs of Inflation - Bloomberg
10.UK Immigration Crisis Hits New Extreme of 336k Net Migration, up 32% on 2014 - Nadeem_Walayat
Last 5 days
Why We Won’t See Gold $5,000 - 1st Dec 15
Globalist Lockdown is here to Stay - 1st Dec 15
Bank Regulations Continue To Hinder The U.S. Economic Recovery - 1st Dec 15
Thanksgiving Amid the Terror Threats - 1st Dec 15
Collapsing Global Economic Trade - 1st Dec 15
Gold Demand in China Heading For Record and Reserves - 1st Dec 15
Stock Market Mixed Expectations Ahead Of December, New Economic Data Releases - 30th Nov 15
The First Prophet - The Day God First Spoke to Man - Video - 30th Nov 15
America's Rendezvous With Destiny - The Fourth Turning - 30th Nov 15
Stock Market Consolidation Week - 29th Nov 15
A Black Friday for Gold Prices - 29th Nov 15
Politicians Driving The World Towards War - Fourth Turning - 29th Nov 15
Stock Market Down Monday, Gold Price Bottoming? - 29th Nov 15
Turkey Downs Russian Jet to Draw NATO and US Deeper into Syrian Quagmire - 28th Nov 15
Stock Market Quiet Week as Primary 5 Continues - 28th Nov 15
Black Friday, Weekend for Europe's Migrants - 28th Nov 15
HUI and Gold - Who's Leading Whom? - 28th Nov 15
Gold And Silver - No Ending Action, But End May Be Near - 28th Nov 15
Social and Cultural Distress Dividing The Nation - Fourth Turning - 28th Nov 15
Sheffield Houses Prices 2015, Best Estate Agents As Rated by Buyers and Sellers - 28th Nov 15
Stock Market Top Valuations, at a Critical Juncture - 27th Nov 15
The Top Shopping Opportunity on Black Friday - 27th Nov 15
Economics Is About Scarcity, Property, and Relationships - 27th Nov 15
UK Immigration Crisis Hits New Extreme of 336k Net Migration, up 32% on 2014 - 27th Nov 15
Vauxhall Zafira B Fire Danger Recall - What to Do Video - 26th Nov 15
Triggers In US Dollar Collapse - 26th Nov 15
Apple Stock is a 10-Year Short - Bear Market Environment - 26th Nov 15
U.S. Federal Reserve Rate Hike - 26th Nov 15
George Osborne's War on Buy to Let Sector Trending Towards Doomsday - 26th Nov 15
Will Turkey Drag NATO into War With Russia in Syria? - 25th Nov 15
George Osborne’s Autumn Statement and Spending Review Full Text - 25th Nov 15
Will Fresh QE From ECB Boost Gold? - 25th Nov 15
Sheffield, Yorkshire and Humberside House Prices Forecast 2016-2018 - 25th Nov 15

Free Instant Analysis

Free Instant Technical Analysis

Market Oracle FREE Newsletter

Reasons to Get Excited About Japanese Stocks

The Euro Crisis is a Moral Crisis, GLD and SLV ETFs Tarnished

Stock-Markets / Financial Markets 2013 May 03, 2013 - 12:21 PM GMT

By: Christopher_Quigley


Ireland’s President Michael D. Higgins has intervened in an unprecedented manner in the political debate on the euro zone debt debacle.  Yesterday he was reported saying that the Euro crisis was a moral crisis as much as an economic one and he believed that unless the hegemony of Germany was mitigated the ideal upon which the European Union was founded would be lost forever, with grave consequences.

The sentiments expressed by Mr. Higgins in his interview has sent shock waves throughout the Irish political establishment who up until now have been feed a “euro consensus speak” by the mainstream media. What is particularly worrying for Enda Kenny the Irish Prime Minister is that the popular reaction to the President’s speech was overwhelmingly positive. At last, many believe, the truth is coming out at the highest social levels concerning the utter bankruptcy of the Euro project.

Arthur Beesley of the Irish Times reported as follows on the 2nd May:

“President Michael D Higgins has intervened directly in political debate on the euro zone debt crisis, criticising the response of European leaders and the actions of the European Central Bank.

In some of his most forthright public remarks since taking office, Mr. Higgins said the introduction of jointly-issued Eurobonds could create scope to boost the economic recovery.

He also took issue with the failure of EU leaders to fulfill their pledge almost one year ago to break the link between bank and sovereign debt.

Mr. Higgins’ remarks put him at odds with the response to the crisis of the German government, which has largely set the parameters for other member states.

The Merkel administration has faced down numerous demands for the joint issuance of sovereign debt and it is in the vanguard of the countries which are resisting demands for the ESM bailout fund to retrospectively compensate bailout recipients for taking on historic banking losses.

Stating that Europe faced a “moral crisis” as much as an economic crisis, the President said European leaders needed to make up their minds on the type of union they really wanted. There was a need for “radical economics” and a “radical rethink” of how EU leaders were handling the economic crisis, he said.

The President’s concerns about the crisis in Europe are well known.

In a speech to the European Parliament two weeks ago, he said Europe’s citizens were threatened with an unconscious drift to disharmony, a loss of social cohesion and a deficit of democratic accountability.

While he called then for the idealism, intellectual strength and moral courage that drove Europe’s founding fathers to be reasserted, he went further in his interview by directly tackling some of the most difficult policy questions faced by EU leaders.

He also questioned Europe’s basic economic model, saying there was a requirement for a multi-layered approach.

Adding his voice to the fractious debate over the mandate of the ECB, the president said the Frankfurt-based central bank should act to fuel economic growth.

Ireland was unusual in its acceptance of such a high degree of cuts when compared to other euro zone countries, he argued.”

Gld and SLV tarnished:

Our comments this time last month to utterly avoid Gold and Silver generated a huge response from readers. One follower said it “saved him a fortune” as he was just about jump into a “huge position” in GLD and SLV with a partner. The April Market Brief stopped him in his tracks.

Following the collapse in the prices of GLD and particularly SLV the reader asked me if I had received any “inside” information. I informed him that the call was based purely on technical analysis. The main technical element I pointed out for him to observe was that when major daily moving averages become points of resistance rather points of support you know a stock, or in this case  a commodity ETF, is in a bear market.

GDL ETF: Daily

SLV ETF: Daily

Dow Transports index has changed trend:

The current bull market movement in equities is beginning to become a pit choppy and may be about to run out of some steam.

The Dow Industrials reached new highs in April but these highs were not confirmed by the Transports.

More significantly on the Trannies in April we had three lower high and two lower low cycles.

This means that as we speak we have a change in trend in this significant index.

Should the Dow 20 break the 5900 level expect volatility to increase significantly.

Thus the “sell in May and go away” mantra may be about to become a self-fulfilling certainty.

However, if the Trannies break up through the 6281 level all will be well with the Bull.

Dow Industrials: Daily

Dow Transports: Daily

Charts: Courtesy of StockCharts.Com

By Christopher M. Quigley

B.Sc., M.M.I.I. Grad., M.A.

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

© 2005-2015 - 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

Biggest Debt Bomb in History