Today Raymond James Chief Investment Strategist Jeffrey Saut was interviewed on King World News and he was saying that Europe is about to launch a two trillion euro bailout package…. Wow.
In my previous post I was mentioning that there would be the possibility that the Fed wasn’t going print some money until they actually needed to in order to make themselves look good. Jeffery Saut was basically saying that the European politicians, bureaucrats and bankers don’t want to lose their power just like all of the other politicians, bureaucrats and bankers in the world and if these guys want to keep their power, they’re going to print money.
So, if Europe goes to the printing press with a two trillion euro bailout package that puts the Fed into a squeeze making the Fed go to the printing press so that the USD doesn’t go to the upside.
Today was pivot point day and the markets had a bounce. Is it sustainable?
You’ll notice that the price action has some serious resistance, however, if powers that be start up the printing presses world wide we could see a bounce but if history is any indication, they won’t do that till the last minute.
Russell 2000 Hourly Chart, June 22, 2012
The chart above is the Russell 2000 hourly with stochastics. Stochastics aside, I’am looking at the pivot points.
In my previous posts I mentioned that we would see pivot points on those days June 14th and June 22. So here we are…the big question is…are we going to be going higher till the next pivot point slated for July 19th.
HUI INDEX JUNE 22, 2012 DAILY CHART
Last but not least is the HUI index or also known as the Gold Bugs Index. If you notice the Stochastics momentum indicator…we have a diversion. I don’t like that. If you notice as well we are sitting on the 34 day moving average (I don’t use the regular 200 & 50 moving averages I stick to Fibonacci numbers).
So there you have it, the next pivot point is July 19th, the bigger question is…are we going to see the July 19th pivot point as a high or as a low. The markets world wide today ended the week sitting on the edge ready to go one way or the other. One thing is for sure and I have to agree with Jeffrey Saut from Raymond James about the European politicians, bureaucrats and bankers…money is going to be printed. How he knows, I don’t know but when he’s interviewed on King World News, he’s seldom wrong.
