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It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. Henry Ford


Those who surrender freedom for security will not have, nor do they deserve, either one. Benjamin Franklin
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The idea that you know what is true is dangerous, for it keeps you imprisoned in the mind. It is when you do not know, that you are free to investigate. ~ Nisargadatta Maharaj


Saturday 30 June 2012

I have a hard time from a fundamental point of view in  seeing today as anything more than another short-covering rally following another kick-the-can down the road announcement that does not address the fundamental problems of the Eurozone structure.Nevertheless bears need to monitor this potential bullish setup and hope for a swift reversal.Last 2 years saw a significant reversal in the first week of July in most markets.


Interestingly,the FTSE chart does not look as worrying from a bear's perspective.Is this because of concern over UK banks ? Chinese slowdown effect on miners ?




2 comments:

  1. Rallies within bear campaigns are usually the most violent, media hyped and seductive. It is interesting that this monster move comes at the end of the quarter and prior to a geometric harmonic for the S&P 500.
    7-Jul-11 1356.48 hi +360 = 1-Jul-12
    06-Mar-12 1340.03 low +120 = 4-Jul-12
    02-Apr-12 1422.38 hi +90 = 01-Jul-12
    01-May-12 1415.32 hi +60 = 30-Jun-12

    Next week should be interesting.

    Check out the wild rallies that occurred in 2008 during the meltdown. Bears are more difficult to ride than a Bull.

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  2. Yes those Gann emblem dates are certainly provocative .Thanks for posting ! (There's a 720 degree date too )

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