Best of the Week
Most Popular
1.The Brexit War! EU Fearing Collapse Set to Stoke Scottish Independence Proxy War - Nadeem_Walayat
2.London Terror Attack Red Herring, Real Issue is Age of Reason vs Religion - Nadeem_Walayat
3.The BrExit War, Game Theory Strategy for What UK Should Do to Win - Nadeem_Walayat
4.Goldman Sachs Backing A Copper Boom In 2017 - OilPrice_Com
5.Trump to Fire 50 US Cruise Missiles To Erase Syrian Chemical Attack Air Base, China Next? - Nadeem_Walayat
6.US Stock Market Consolidation Time - Rambus_Chartology
7.Stock Market Investors Stupid is as Stupid Goes - James_Quinn
8.Gold in Fed Interest Rate Hike Cycles- Zeal_LLC
9.The BrExit War - Britain Intelligence Super Power Covert War With the EU - Nadeem_Walayat
10.Marc Faber: Euro to Strengthen, Dollar to Weaken, Gold and Emerging Markets to Outperform - MoneyMetals
Last 7 days
EURUSD at a Critical Point in Wave Structure - 23rd Apr 17
Stock Market Grand Super Cycle Overview While SPX Correction Continues - 23rd Apr 17
Robert Prechter Talks About Elliott Waves and His New Book - 23rd Apr 17
Le Pen, Melenchon French Election Stock, Bond and Euro Markets Crash - 22nd Apr 17
Why You Are Not An Investor - 22nd Apr 17
Gold Price Upleg Momentum Building - 22nd Apr 17
Why Now Gold and Silver Precious Metals? - 22nd Apr 17
4 Maps That Signal Central Asia Is at Risk of War - 22nd Apr 17
5 Key Steps For A Comfortable Retirement From Former Wall Street Trader - 22nd Apr 17
Can Marine Le Pen Win? French Presidential Election Forecast 2017 - 21st Apr 17
Why Stock Market Investors May Soon Be In For A Rude Awakening - 21st Apr 17
Median US Household’s Wealth Has Declined by 40% Since 2007 - 21st Apr 17
Silver, Platinum and Palladium as Investments – Research Shows Diversification Benefit - 21st Apr 17
U.S. Stock Market and Gold, Post Tomahawks and MOAB - 21st Apr 17
An In Depth Look at the Precious Metals Complex - 20th Apr 17
The Real Story of China’s Strong First-Quarter Growth - 20th Apr 17
3 Types Of Life-Changing Crisis That Make You Wish You Had Some Gold - 20th Apr 17
The Truth is a Dangerous Thing - 20th Apr 17
2 Choke Points That Threaten Oil Trade Between Persian Gulf And East Asia - 20th Apr 17
Gold’s Next Downside Target Is Around $700… Even if It Breaks Up First - 19th Apr 17
SPX May be Completing its Corrective Pattern - 19th Apr 17
Silver Production Has “Huge Decline” In 2nd Largest Producer Peru - 19th Apr 17
Soothing East Asia's Nerves as Trump's Administration Reaffirms US Power in Asia-Pacific - 19th Apr 17
The Brexit War - Article 50 Triggered, General Election 2017 Called - Let the Games Begin! - 19th Apr 17
Plungers Big Trade - The Oil Short - 18th Apr 17
The Smart Money Is Piling Into Regenerative Medicine - 18th Apr 17
If You Invest In Stocks Now, Expect No More Than 3% Returns In The Next 20 Years - 18th Apr 17
Maps That Explain Wars In The Middle East And North Africa - 18th Apr 17
Theresa May Calls Snap BrExit UK General Election Capitalising on Crippled Labour Party - 18th Apr 17
Is US Economy at the Cusp of the Next Recession? or Maybe Worse? - 18th Apr 17
US Housing Market Mortgage Delinquency Rates Increase & 3X ETFs - 17th Apr 17
Trump US North Korea First Strike Smoke and Mirrors, China is the Real War Target! - 17th Apr 17
Now Is The Time To Invest In Canada’s Marijuana Boom - 17th Apr 17
History of the Post WWII Crude Oil Price From a Technical Perspective - 17th Apr 17
Stock Market Bounce Coming? - 17th Apr 17

Market Oracle FREE Newsletter

50+ Global Markets. Today's Top Opportunities. (April 12-20)

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

Stock-Markets

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.
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

© 2005-2016 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

Catching a Falling Financial Knife