Things are once again deteriorating in Europe at a rapid pace. The ten-year Italian bond is right back to where it was before LTRO 2 (just one month ago).
This is the end result of central bank intervention in the markets: the impact of each new intervention diminishes as the markets become ever more reliant on more stimulus/ intervention.
With that in mind, European financials are once again flashing danger signals:
When we take this line out, the next round of the European banking crisis will have begun. Speaking of which, both Italy and Spain’s markets are on the verge of a breakdown:
Watch those lines, when we take them out the next collapse is here.
In the US, the S&P 500 continues to cling tenaciously to the 1,400 level based largely on overblown earnings expectations (take our Apple’s results and the picture is not especially pretty) as well as the fact that investors ironically tend to get more bullish as stocks rise. And we’ve just staged on heck of a rise.
On that note, we’re forming a very dangerous looking rising bearish wedge:
If we break the lower trendline here we’re going down hard.
Indeed, we are facing a confluence of negative factors regarding Europe (political, monetary, fundamental, and technical) that indicate BIG TROUBLE could be hitting the markets in May-June. If you’re looking for actionable investment strategies on how to play these themes in the markets I suggest checking out my Private Wealth Advisory newsletter.
Private Wealth Advisory is my bi-weekly investment advisory published to my private clients. In it I outline what’s going on “behind the scenes” in the markets as well as which investments are aimed to perform best in the future.
In fact, I recently unveiled several trades to profit from the coming Collapse of Europe in last Wednesday’s issue. Already we’ve seen gains of 6%, 9%, 10%, even 12%… in just two weeks. This makes 42 straight winners and not one closed losing trade in nine months’ time.
If you subscribe to Private Wealth Advisory now, you’ll immediately find out what investments they are. You’ll also gain immediate access to my Protect Your Family, Protect Your Savings, and Protect Your Portfolio Special Reports outlining how to prepare these areas of your life for the coming Great Crisis.
These reports outline:
1) how to prepare for bank holidays
2) which banks to avoid
3) how much bullion to own
4) how much cash is needed to get through systemic crises
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And more…
To learn more about Private Wealth Advisory… and how it can help you navigate the markets successfully…
Graham Summers
Chief Market Strategist
