| From: Eva | 3/30/2012 1:34:18 PM | | | of 43984 | | | updates --  trotsky, 13:07:31 03/30/12 Fri [1]
Gold and Gold Sentiment
Wells Fargo analyst J. Paulson (James, not John), a perennial stock market bull, argues we should sell gold as it is allegedly 'overvalued' and will fall prey to increasing economic confidence.
Ironically, this recommendation comes just as the composite sentiment indicator on gold stands at a more than one decade low. We think that at least one of the Paulsons is in for a surprise.
acting-man.com 
Euro Area Stock Markets - Harbingers of a Bleak Social Mood
A look at the stock markets of Greece, Spain, Italy and Germany. While the eurocrats debate the enlargement of their 'firewall' and sound increasingly certain that the 'crisis has ended', the region's stock markets say something else.
Greek stocks are probably close to a low, if they haven't made it already - once a market is down by 90% and trades at a trailing p/e of 6, it has probably discounted everything short of an asteroid strike.
However, Spain's stock market looks like it's about to fall off the next cliff, and Italy's stock market has - similar to Spain's - been sitting out the recent global 'risk rally' for the most part. Yesterday shares in Unicredito had their first 'limit down' day in a while.
The great danger is that Spanish and Italian banks may be forced to unwind their recent bond buying binge again - in which case the sovereign debt crisis would be right back where it left off in November.
Germany's stock market has risen further and for longer than we thought (we revisit an old wave count and projection), but the wave count we posted in early October still seems to be applicable - so far anyway.
The BuBa meanwhile is taking steps to counter the effects of the ECB's monetary pumping in Germany. In the words of a BuBa official: they don't want to repeat the mistakes of Ireland and Spain in Germany. It's good to know that at least someone is trying to act responsibly.
acting-man.com |
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