Monday, 23 April 2012

EURUSD & EP M12... The weakness shows

Following France's 1st round of the Presidential election we are faced with Mn Hollande in the lead- he has already said he wants to upset the apple cart viz-a viz Europe and the EZ and spend spend spend, tax tax tax. As someone who lives in France there is no other Western European country where the politics of envy are more apparent. France is truely a socialist state and my local town has not only communist candidates but a charming Trotskyist local candidate in the annual local elections ( not this Presidential election). Wealth and wealth creation are frowned upon in the same way as they were in the UK in the 1970's. Sarkosy was meant to change all that with wealth creation and reclain that famous French word Entrepreneur for the French. Sadly his politics have been devisive. It was only yesterday when i relooked at the CAC40 chart i saw with horror what a lacklustre performance it's put in over the last few months compared to the S&P or the DAX.

There is suppport for the failed black upsloping black fork at 1359.00 ( June12) but I suspect we are going to make a LL this week and have another go at 1350.00
Re the June 2012 Mini Dow we are heading back towards 12765 where again we should find support but remember myu current interest in these Stock Indices markets kicked off a few weeks ago with the triple tops formation in the Dow. I still am uncertain about the long term direction and if we are now in a new bear phase. It seems unreasonable to expect markets not to correct but at the same time the USA fundamentals are positive.In my opinion we will find the answer to this question in the coming 2-4 weeks.but my money is on seeing a LL and taking out  12668 (M12).

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