An important point stressed in this: the Euro crisis today is not blowing up the economy. The economy was already blown up by the reckless policies and asset speculation in the years that preceded it. This truth is now revealed.
Harvard University history professor Niall Ferguson talks about Europe’s banking crisis.
The teeter totter continues this week with the US Index breaking decisively through key resistance north of 81, currently trading around 82.40. As shown below in my partner Cory’s work, $88 remains our potential upside target. The wild card is whether further monetary intervention will disrupt the flow in the interim.
Source: Cory Venable, CMT, Venable Park Investment Counsel Inc.
On the other side of this trade, copper has fulfilled its downside promise, having given back gains made in QE2, Twist and Europe’s LTRO liquidity pumps. Here was Cory’s chart on Global Copper at the start of last month (April 9) and below it appears updated today with price having fallen to near-term support. Weak global demand as the recession spreads, suggests copper has further downside. The next near-term test in this chart is 22, marked with a circle below.
Source: Cory Venable, CMT, Venable Park Investment Counsel Inc.
