Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Stock Market: "Relevant Waves Vs. Irrelevant News" - 10th Jul 20
Prepare for the global impact of US COVID-19 resurgence - 10th Jul 20
Golds quick price move increases the odds of a correction - 10th Jul 20
Declaring Your Independence from Currency Debasement - 10th Jul 20
Tech Stocks Trending Towards the Quantum AI EXPLOSION! - 9th Jul 20
Gold and Silver Seasonal Trend Analysis - 9th Jul 20
Facebook and IBM Tech Stocks for Machine Learning Mega-Trend Investing 2020 - 9th Jul 20
LandRover Discovery Sport Service Blues, How Long Before Oil Change is Actually Due? - 9th Jul 20
Following the Gold Stock Leaders as the Fed Prints - 9th Jul 20
Gold RESET Breakout on 10 Reasons - 9th Jul 20
Fintech facilitating huge growth in online gambling - 9th Jul 20
Online Creative Software Development Service Conceptual Approach - 9th Jul 20
Coronavirus Pandemic UK and US Second Waves, and the Influenza Doomsday Scenario - 8th Jul 20
States “On the Cusp of Losing Control” and the Impact on the Economy - 8th Jul 20
Gold During Covid-19 Pandemic and Beyond - 8th Jul 20
UK Holidays 2020 - Driving on Cornwall's Narrow Roads to Bude Caravan Holiday Resort - 8th Jul 20
Five Reasons Covid Will Change SEO - 8th Jul 20
What Makes Internet Packages Different? - 8th Jul 20
Saudi Arabia Eyes Total Dominance In Oil And Gas Markets - 7th Jul 20
These Are the Times That Call for Gold - 7th Jul 20
A Reason to be "Extra-Attentive" to Stock Market Sentiment Measures - 7th Jul 20
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

Stock Market Caution as Greek Crisis Reaches Endgame

Stock-Markets / Stock Markets 2015 Jun 14, 2015 - 04:27 PM GMT

By: Christopher_Quigley

Stock-Markets

European markets were on a roller coaster ride last week as rumor and counter rumor about a Greek deal with the European Central Bank circulated and affected sentiment. When news hit Friday that the IMF team had left for Washington the DAX (Germany’s main stock index) dived only to recover later in the day when it was announced that a new proposal was to be presented by Prime Minister Tsipras.


Greeks are withdrawing money from their banks at an alarming rate and it is hard to see how this state of chaos can long endure. I reckon the next two weeks will see a conclusion one way or another, so expect more volatility in the near term. If a deal is not reached it is highly likely there will be a significant correction in European and American stock markets.

To give you a sense of what is in store I quote a recent article from the Irish Times:

Irish Times 11th. June, 2015.
Relations between the Greek government and the European Commission deteriorated last weekend after Mr. Juncker criticized Mr. Tsipras for rejecting outright the latest creditor proposal in an address to the Greek Parliament last Friday.

The meeting took place as Standard and Poor’s downgraded Greece’s rating by one notch last night. The rating agency lowered its rating to “CCC” from “CCC+’” with a “negative’’ outlook, stating that it was likely the country will default on its commercial debt within a year if it can’t strike a deal with its creditors.

Greece’s decision to defer payment of a €300 million payment due to the IMF last week (amounting to a default) showed it was giving higher priority to pensions and other domestic spending than making debt payments on time, Standard and Poor’s said.

Greece faces (total) default at the end of this month if it does not strike a deal with international creditors to unlock bailout money.

Focus is now turning to the next Eurogroup meeting of euro zone finance ministers scheduled for next Thursday (18th. June) in Luxembourg.

Signs that a possible deal could be achieved before then emerged yesterday from Berlin, amid reports that Germany was privately in favor of providing a staggered aid deal to Greece, despite continuing opposition from many within MS Merkel’s CDU party towards granting Athens further aid without significant reforms.

Bloomberg reported that Berlin was willing to unlock badly-needed aid if Greece agreed to even one reform demanded by creditors, a position that was at odds with the tough stance taken by Germany publicly.

“The goal is, we want to keep Greece in the euro zone,” Chancellor Merkel said on arrival in Brussels. “Where there is a will, there is a way.” As leaders met in Brussels yesterday, the European Central Bank in Frankfurt was said to have increased the level of emergency liquidity assistance (ELA) provided to the Greek banking sector.

American Stock Market Technical Weakness Continues:
Given the precarious nature of European financial stability it is not surprising that that the technical condition of the American stock market is precarious.

The Dow Transports has collapsed with price action remaining significantly below its 200 DMA. The index is on the cusp of a “death cross” (the 100 DMA crossing the 200 DMA). Such an event would be significantly bearish.

For the first time since October 2014 we are beginning to see weakness in the NYSE Advance Decline Line. This is a very important indicator and in conjunction with classic Dow Theory it is great at fore-warning significant market corrections. Price is beginning to consolidate below its 100 DMA. This weakness is confirmed by the fact that two Hindenberg Crash Omens were received Wednesday June 10th. and Thursday June 11th., accordingly caution is warranted.

Chart: Dow Transports: Daily.

Chart: NYSE A/D Line: Daily.

Charts: courtesy of Worden Bros.

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.

© 2015 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