Another Stock Market Pop-n-drop Expected
Stock-Markets / Stock Markets 2015 Feb 05, 2015 - 04:16 PM GMT
Good Morning!
The Premarket is up this morning, nearly to yesterday’s high. I expect no less in a market that is premised on appearances, not substance.
The pattern is jumbled enough to offer at least two outcomes. It is possible that the decline in yesterday’s last half hour may have been the completion of a Micro Wave b, with a Wave c to follow. Or, the morning ramp may fail to overcome yesterday’s high and simply collapse at the open.
The big news, in my opinion, is the ECB lifting the Waiver on Greek government Debt. Until now, banks were allowed to carry Greek Sovereign Bonds at par instead of market value. The is going to affect most European banks and some major banks in the U.S. as well. Many banks in Europe were already insolvent, but pretending not to be. The Euro QE program was meant to bolster European banks, not increase employment.
Either Greece is playing a game of chicken with the EU or he is deadly serious. In either case, things going forward will not be the same. At this time, Europe has a lot more to lose than Greece.
In the meantime, layoffs have surged 17.6% year over year as the shale states lose jobs. The U.S. trade deficit soared in December. The reality is, the export of U.S. Dollars soared as the world peers over the brink.
In the meantime, bulk shipping companies begin to declare bankruptcy as the Baltic Dry Index collapses.
Gold appears to be resuming its deflationary decline as the morning futures hit a low of 1259.09. It, to appears capable of making new lows, as is crude oil.
Regards,
Tony
Our Investment Advisor Registration is on the Web
We are in the process of updating our website at www.thepracticalinvestor.com to have more information on our services. Log on and click on Advisor Registration to get more details.
If you are a client or wish to become one, please make an appointment to discuss our investment strategies by calling Connie or Tony at (517) 699-1554, ext 10 or 11. Or e-mail us at tpi@thepracticalinvestor.com .
Anthony M. Cherniawski, President and CIO http://www.thepracticalinvestor.com
As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals
Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.
Anthony M. Cherniawski Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
