We have a SELL signal in FTSE (UK)  & Dow Jones Transportation. No Sell signal on  DAX (German) markets

FTSE

DAX

Dow Jones Transportation

DJI

SPX

NASDAQ

10 Year Interest Rate Futures

Rates keep on going up. Federal Reserve is helpless.

Gold- No SELL SIGNAL

To Buy the book click here

http://budurl.com/dyla  . You do not have to buy kindle.

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For all practical purposes, Italy, Greece, Spain, Portugal are all in a depression with unemployment above 25%.  Their markets went below 2009 lows already.  Germany, France and UK have been doing OK because they feed off the rest of Europe. It cannot continue for ever. Also we notice huge divergence between European stocks and US stocks. Whereas US stocks have gone above May highs, European stocks have not done so. However in European  major indices there is no SELL signal yet. We have a feeling that European stocks will give a SELL signal before US stocks do.
See the charts below.

FTSE  UK

DAX Germany

CAC France

Italian Market

ITALIAN Market already has Gone below 2009 lows

The interesting thing aout our market is that  in spite of Fed printing 85 Billion dollars every month 10 year rates are again above 2.5%. It is like pushing on a string. The market already knows that Federal Reserve will start  reducing their purchases of bonds starting in September 2013 and completely eliminate them by June 2014. This is why we are asking you to take profits now even though we do not have a SELL signal. When the SELL signal arrives, everybody wants to get out at the same time and you may get into trouble. Look at MSFT, GOOG, NFLX, etc.

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Gold & Silver continue to rally. We told you to buy Gold & Silver on June 28 when Gold hit $1190 or so.
Later we had a buy signal on GLD & SLV on July 10, when both crossed 15 day moving averages. Whether it is the beginning of a big rally that we have been expecting or we will sell off to new lows as dollar  becomes stronger cannot be predicted at this time.  Why make a prediction now? Let the market tell us.  If it sells off again , we will watch the 15 day moving averages.

We still have no SELL signal on the stock markets in USA even though we took profits last Thursday.
 Nasdaq

SPX

DJT

RUT

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The Price earning ratios have gone above bubble levels and it is about time we should take profits in all long positions even though we do not have a SELL signal yet as per  second half of Chapter 5 of our book.

The following data from  The

Wall Street Journal
Russell 2000 PE is 46.74 and when the decline starts TNA will fall the most and TZA will rise the most
We have made a lot of profit in TNA and we should take profits right now. In fact in TNA you have a profit of 25% if you bought on June 28 when we got a buy signal in accordance with Chapter 5 of our book.
NASDAQ chart

TNA

NYA Average of all stocks has not made a new high since  May 22, 2013

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Here are the charts for IWM & TNA
If you follow  Chapter 5 of our book on strictly technical basis, we had a Buy signal on IWM & TNA on June 28 when both IWM, RUT crossed  above 15 day moving averages.That was also a signal for selling TZA. We make mistakes when we start looking at the fundamentals.

DJI & SPX & NYA & Dow Jones Transportation Averages have not gone above their May 22 intraday highs yet. Unless it happens soon we may be headed towards  SEll signal soon. FTSE, DAX and  most European stocks have not gone above their My 22 highs. In fact european stocks will lead us lower soon
DJI

SPX

NYA Above

DJT

DAX

CAC

NIKKEI

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Yesterday Bernanke changed his mind and has  decided to ease again. It is like boiling a frog. Eventually the frog will be dead. The question is how soon.
See the commentary by By Scott Silva
Editor,  The Gold Speculator

http://www.kitco.com/ind/Silva/2013-07-10-The-Manchurian-Chairman.html

Here are the charts:
DJI , SPX, NASDAQ may or may not make new highs but they will eventually start the decline again
DAX, FTSE in Europe and Nikkei in Japan are not making new highs today no matter what Big Ben says. The genie is out of the box as far as bonds are concerned. The rates will not go back to levels a month ago. They will start going up again. The  world wide bond market is so huge, that $85 billion per month is a drop in the bucket. The rates will resume their upward march soon.

NASDAQ

DAX Till  6 AM  Pacific Time

FTSE

Nikkei as of July 10, 2013. It went up only 55 points today

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Markets may make  higher highs  in the current rally which started a week ago. After the rally is over we  will  make new lows in a 3rd of 3rd decline in this decline which started on May 22.

Russell 2000 has moved sharply higher because of rebalancing of Russell 2000 . It happened on June 28  and announced on July 1. Weak stocks are removed and strong stocks are added at the time of rebalancing. This is another method by which the Insiders manipulate the markets to benefit themselves

 Russell completes annual rebalancing of global indexes with conclusion of Russell Indexes reconstitution

171 stocks were added to the Russell 2000 Index this year, with American Realty Capital, Dynegy Inc. and Chambers Street Properties entering as the three largest additions. American Realty Capital graduated from the Russell Microcap Index, while Dynergy and Chambers Street Properties were new entrants to the Russell Indexes.

http://www.russell.com/us/news/press-release.aspx?link=press-releases/2013/PR20130628-indexes.htm

See also

See why Apple  has been going down and Microsoft going up

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