Milking the Euro-decoupling Theme ~ The Risk Averse Alert

Tuesday, January 10, 2012

Milking the Euro-decoupling Theme


Shorter dated technical confirmation coinciding with today's advance meets longer dated technical divergence exposing underlying weakness to extend as follows an Elliott corrective wave's levitation whose greater success is in time breeding complacency, rather than distance substantiating today's apparent contentment...


SPX 5-min

Not a big change to an assumed wave count whose second "c" wave of an a-b-c-x-a-b-c "complex" corrective wave since mid-August is seen unfolding. Although last Tuesday's CME shot out of the gate kicking off 2012 nicely filled out the Elliott Wave Principle's channeling guideline per a 5-wave move — these forming the second "c" wave — the fifth and final wave, itself, could be forming a "rising wedge," as indicated above.

So, in store appears another several days milking the euro-decoupling theme touting Team Fraud's "well-capitalized" banks chock full of mispriced risk over their European brethren whose mispriced risk is leveraged to the gills. The countdown to EMU disintegration proceeds with a hedge fund fantasy land poised for grave disappointment in a highly correlated sovereign trade whose counter-party risk rather likely threatens the banking system's implosion.


Fast Money
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1 comments:

johnythomas said...

Hat’s off. Well done, as we know that “hard work always pays off”, after a long struggle with sincere effort it’s done.
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