Gann Angle Review SP500 and US Dollar
The news in the US is good enough to maintain the bullish stance, however as always the news out of Europe could change things. After all Europe started many things in the 20th century: WW1, WW2, The Great Depression, Cold War. What's could be next, sovereign debt crisis maybe?
Hollande wins in France: A socialist, and they like to spend other peoples money (that's the truth), Germany wont like Hollande for that. Hollande solution will be to increase the ECB balance sheet at will. Great for gold if you are European. And unless the US Fed prints the growth of the ECB balance sheet will give strength to the US dollar. Unit that happens (QE3,4,5, etc) Ben Bernanke is playing catch up football. Euro weakness, US dollar strength.
Greek Elections is seeing the rise of smaller parties. Nationalists and the like. More chaos. This will make the bond guys nervous, watch the CDS spreads. Plus there is more bailout demands by the Greeks.
Spain: They want LTRO3...ha ha
Our view of the European fundamentals is a best guess, who really knows. Post your view in the comments.
The markets sold down because of the above risk, will they bounce back, we can't see why not. The real news is the end of 'Operation Twist' in June and the emptiness that follows.
The Charts SP500 and US Dollar.