German DAX Could Freefall To 10,000 Or Lower...Will That Affect The SPX?

* See UPDATES below...

In my post of March 7, I warned of a stong divergence between Germany's DAX with the European MSCI Financials ETF, EUFN.

Both have dropped since then, as shown on the following monthly charts.

While the DAX has had difficulty staying above 10,000 since 2015, the EUFN has repeatedly erased all gains above 14.00, which is rock-bottom major support, since its inception in 2010 (a risky investment as it turns out).

The EUR/USD has also dropped back to parity with the U.S. Dollar, as shown on the following monthly chart...a level not seen since 2002. Major support sits around 0.9000.

With major issues currently facing Germany and Italy, as described in the following articles, plus others in France, as well as Holland, Spain, Italy and Poland, it's only a matter of time before we see the DAX retest 10,000, or lower.

We'll see if such a move also drags down the SPX...watch for the level of upcoming Fed rate hikes and subsequent U.S. Dollar moves, especially the EUR/USD pair, for clues.

Source: ZeroHedge

Source: ZeroHedge

* UPDATE July 18...

More bad news for Europe's energy supply...

Source: ZeroHedge

* UPDATE July 20...

It looks like Mario Draghi is closer to being ousted as Italian PM...causing the EUR/USD and EUFN to plunge after their recent brief rallies...

Source: ZeroHedge

* UPDATE July 21...

PM Draghi resigned today after losing support of his coalition government supporters...an election has been called for September...more chaos for Europe...

Source: Wall Street Journal

* UPDATE July 23...

A must-read article on Europe's prospective (grim) future...

Source: ZeroHedge

This crisis is of Germany's own making with their punitive energy policies...

Source: ZeroHedge

How stupid do they think people are? 😕

ZeroHedge excerpt

* UPDATE July 25...

Russia is turning the screws on Europe...stock up on deodorant supplies!

Source: ZeroHedge

So, Mario Draghi made a mess of things in Italy, according to the following report. 

It seems that the Governor's gushing description of him was totally off the rails, not to mention blasphemous, as well! 🤔

Source: ZeroHedge

ZeroHedge excerpt

* UPDATE Aug. 2...

Even Germany's dead may be negatively impacted by their energy policies...

Source: ZeroHedge

* UPDATE Aug. 12...

It doesn't look like Germany's 'green energy' policies have helped Rhine River water levels, so far...a recession is "even more likely"...

Source: ZeroHedge

ZeroHedge excerpt

More proof that Germany's 'green energy' program is failing and will cause more environmental damage than conventional energy sources...

Source: ZeroHedge

ZeroHedge excerpt

* UPDATE Aug. 25...

It seems that German leaders will have to make a choice whether to serve the interests of their own citizens versus those of Ukraine in the near future...

Source: ZeroHedge

ZeroHedge excerpt

* UPDATE Aug. 30...

It looks as though the EU is in the midst of growing dis-unity, and that the "easy" and "prolific" lifestyles of Europeans has fractured and is in jeopardy of a massive rug-pull, possibly to the point of no return.

And, the U.S. may not be far behind, as it digs itself further into debt at breakneck speed with no clear path of redemption, under Joe Biden's reckless and prolific spending actions.

Source: ZeroHedge

No wonder EU unity is fracturing, as their newly-exposed "wheelings and dealings" are becoming questionable, at best!

Source: ZeroHedge

* UPDATE Sept. 6...

The weakening Euro and EUFN ETF are signalling further weakness in the EU.

Market makers have been "pumping and dumping" those, along with the German DAX and, especially the STOXX 50 and STOXX 600 for years.

None of these have proved to be a viable long-term wise investment...so, it's not surprising to see this latest trend continue.

Source: ZeroHedge

Source: ZeroHedge

ZeroHedge excerpt

* UPDATE Sept. 18...

More dire energy supply news for Europe...

Source: ZeroHedge

* UPDATE Sept. 21...

Good news and bad news for Germany and Europe...

Source: ZeroHedge

* UPDATE Nov. 6...

An "interesting" take on things involving Germany, the EU, China and Russia...

Source: ZeroHedge

From This Week's "Smile File"...The Real "Green" Machine Takes Its Rightful Place 😏

The Pelosi Push

How uncouth! 

It's clear that Democrat House Speaker Nancy Pelosi deliberately shoved this little girl away from her...and she claims (with a straight face) that she's a Christian! 😕

Source: ZeroHedge

P.S. Despite the subsequent response/explanation issued by Pelosi's office, she could plainly see that the girl was not hidden behind her before she elbowed her...therefore, no need for the shove.

Imagine if Donald Trump had shoved a Democrat's child during a photo-op when he was President! He probably would have been charged with assault....after being impeached! 

Even though he's been out of office for the past year and a half, Democrats are still searching for some crime they think he committed (in order to have him indicted) by plastering a former White House personnel's shady hearsay testimony on TV, which is already being contradicted by the Secret Service, as noted in the following report. Have they no shame or integrity?

Source: ZeroHedge

* UPDATE July 16...

Wait...there's more...more Pelosi "privilege" revealed...

Source: ZeroHedge

* UPDATE July 28...

Not everyone thinks Nancy and Mr. Pelosi's trades are above board...I wonder what Martha Stewart thinks? 🤔

Source: ZeroHedge

* UPDATE Aug. 14...

OK, so what's Taiwan going to do about this, if anything???

Source: ZeroHedge

'Green Energy' Claptrap 😕

More political insanity revealed...

Link to tweet & video

BITCOIN: The "Emperor-Wears-No-Clothes" Klepto-Currency Crapshoot Has Finally Been Exposed

* See UPDATE below...

I've been calling for 20,000 on BITCOIN (BTC/USD) since my post of May 20, 2021. It hit a low of 20,089, so far, today.

The BEARS are still firmly in control.

Major support lies much lower at 10,000...an inviting downside target...followed by ZERO.

* UPDATED June 19...

Investing.com is also expecting BITCOIN to "plummet below 10,000," as noted in today's article.

It hit a low of 17,611 yesterday.

Source: Investing.com

* UPDATE July 20...

Another "klepto-currency" aptly self-described "lunatic" bites the dust...one of many, so far...with, possibly more to come...

Source: ZeroHedge

"Save me from myself!" seems to be the humiliating intimation from this guy...😏

Remember the old adage...Buyer beware!

ZeroHedge excerpt

* UPDATE July 23...

More klepto-currency wealth destruction hits retail chumps investors...

Source: ZeroHedge

* UPDATE July 25...

More troubles ahead for cryptos...

Source: ZeroHedge

Meanwhile COIN's fall from grace has been spectacular...in just a little over one year from its IPO...

Cathie Who?

It's a mystery why anyone would take seriously what Ark Invest CEO/CIO Cathie Wood has been, and still is, forecasting for markets, as she's been wrong for months, while her own ARK Innovation ETF (ARKK) has lost 76.25% of its value from its high of 159.70 in February 2021 to close at 36.99 on Tuesday, as shown on the following monthly chart and graphs. The bears are still firmly in control of this ETF.

We'll see if it hits its IPO price of 20.42, or lower. If it holds below 40.00, we may see that level reached...possibly sooner rather than later.

StockCharts.com

StockCharts.com

How Long Can President Biden Survive In 'Survival Mode?'

N.B. This will be a very long and depressing post by the time President Biden's first (and likely only) term is up in January 2025...a refection of his character and policies and the damning effects they are having on Americans, the economy, the environment, the country's national security, as well as the rest of the world's economies and global social stability.

Part I

* See UPDATES below...

Add this disturbing development involving the Supreme Court to the long list of President Biden's failures -- and national security threats that have formed since he took office -- and you've got a very big problem brewing in the U.S. that is contributing to a high level of uncertainty and a general malaise over future prosperity prospects for its citizens and domestic and foreign investors.

Source: ZeroHedge

So, how long can Joe Biden survive in 'survival mode?' He may barely survive until his four-year term ends, but it's doubtful that many Democrat members of the House and Senate will when their term expires this November, inasmuch as they've enacted his policies (and have pulled him to the extreme far left on many issues) and are directly accountable to their constituents who are negatively impacted by the fallout of Biden's agenda, especially by out-of-control inflation and a high crime wave in their cities.

Look for a 'red wave' to occur during the 2022 mid-term elections, as a result of President Biden's 'lack of courage' to govern the way he promised in his speech when he was sworn into office on January 20, 2021...as a self-professed centrist and a uniter. No one believes his proclamations anymore...but, I doubt many did in the first place.

Market players have already voted with their money...and, it's not favourable for Joe Biden, his agenda, or the Democrat party...see my post of February 21 for further details on major support levels for the SPX pertaining to its break of its Head and Shoulders neckline at 4200.

The SPX closed at 3851.85 the day of President Biden's inauguration. Most of the gains it made since then have been wiped out this year.

Remedy For Fed-Fuelled Wall St. Gluttony...Purging

* See UPDATES below...

What is Wall Street to do after gorging on cheap money, supplied in abundance by the U.S. Federal Reserve ever since they slammed the brakes on heavy losses caused by the 2008/09 financial crisis?

Purge, of course...as evidenced by the following 10 major technology stocks...all of which are currently in the FNGU ETN basket of stocks.

Judging by the massive haemorrhaging that has occurred this year, it seems that the respective values of these stocks were wildly over-inflated by pure speculation, based solely on cheap money supply...not on the actual value of these stocks and their products/services.

You'd think that the Fed would have learned their lesson by now and not fuelled another stock market bubble, as they've done in the past.

There's no telling where these and other stocks will end up over the next months, but with the Fed pulling the plug on their latest (failed) money-printing experiment, it appears that consumers are finally dictating what their priorities are...and spending their ever-shrinking dollars on basic necessities, and not the 'latest and greatest shiny baubles.'

As long as inflation continues to rage and the global supply chain keeps on sputtering and breaking, with talk of impending recession swirling in the mix, I doubt we'll see equity markets race to new highs over the next several years. Instead, volatility will continue to remain at the forefront of short-lived plunges and spikes in both directions...and indecision will plague market players.

Therefore, I still stand by my market assessment described in my post of March 8.

The following one-year charts of the 10 tech stocks that are within the FNGU ETN basket exemplify the volatility that has plagued equity markets since the beginning of the year, and, in some cases, for a year, or more.

Source: StockCharts

The following graph shows the percentages that these stocks have lost year-to-date.

Source: StockCharts

To add a little more perspective on a couple of these stocks, the following charts compare longer-term monthly price action of NFLX with FNGU and AMZN with FNGU.

I'd say that they, and especially FNGU, portray the gluttony and purging described above.

Some additional details regarding AMZN's poor performance are provided in the following ZeroHedge article.

Source: ZeroHedge

And, there's this ZeroHedge market analysis...

Source: ZeroHedge

As an aside, another example of this gluttony and purge scenario is the ARK Innovation ETF, ARKK (containing 141 stocks), as shown on the following monthly chart comparing it to FNGU. You can see that it has traded in lock-step with FNGU over the years.

ZeroHedge has provided a bit more 'colour commentary' on this ETF, as follows.

Source: ZeroHedge

P.S. To repeat what I said in March..."Best of luck...it's crazy 'out there'...and rumours are flying everywhere!" 😏

* UPDATE May 4...

The Federal Reserve raised interest rates by 0.50% today. 

This tweet sums up where we're at, thanks to the Fed's overly-accommodative policies during the past years...too little, too late...they are a joke.

* UPDATE May 7...

I'm at a loss for words...which doesn't happen very often...

* UPDATE May 19...

The Fed's loose monetary policies have forced people to invest their savings into riskier assets that they wouldn't normally have taken in order to generate a real return...eventually creating bubbles which pop...

Source: ZeroHedge

* UPDATE July 19...

Leverage, expansion and liquidity are favoured policies of the U.S. Fed...but at what cost? 😕

Source: ZeroHedge

* UPDATE July 20...

Place the blame for inflation on the Fed and the U.S. government...where it belongs...

Source: ZeroHedge

ZeroHedge excerpt

* UPDATE Sept. 21...

More pain ahead as the Fed raised their rates another 0.75% today and signalled higher rates for longer...markets dumped and the US Dollar spiked on the news...

Source: ZeroHedge

ZeroHedge excerpt

* UPDATE Sept. 23...

More confirmation of pain ahead...for consumers, businesses, and markets...as the purging continues...

Source: ZeroHedge

ZeroHedge excerpt

The SPX has plunged over the past two weeks and is close to retesting its 2022 low of 3636.82, or lower...and Goldman Sachs has a new crash target of 3150.

* N.B. For more Fed UPDATES click this link.

Twitter's Fair Value

Judging by the number of times that Twitter (TWTR) tried to hold a rally into new highs above 30.00 and failed since its IPO in 2013, I'd have to say that that is precisely where its fair value lies, as shown on the following monthly chart.

By the way, Twitter's performance has been so poor over the years that it was dropped from the FNGU ETN basket of stocks and replaced with MSFT, as noted in my post of February 2.