Europe May Lead the Markets Lower

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.