Dazed and Confused
Europe started to switch gears from pro-deficit-reduction and pro-austerity to pro-nothing, complicating market matters. Europe wants to recover from a sickness without the proper medicine -- nor does it appear willing to take the necessary amount of time to heal. At this point, Europe is so confused, nations are voting out Merkel's party, which to me was one of the bright spots.
My notes took a very bearish tone when we broke the 1390-1392 S&P 500 support level on May 3-May 4 and (combined with my common-sense fundamental view of Europe) when Greece's rhetoric changed and Hollande got the vote in France. The latter factors illustrate that Europe will continue to have a path of commitment to nothing vs. its prior somewhat united path. When technicals and fundamentals are both negative, the best strategy is to go to cash and tactics -- that is, waiting for more data while preserving capital....552 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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