* 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.
* UPDATE July 18...
More bad news for Europe's energy supply...
* 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...
* 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...
* UPDATE July 23...
A must-read article on Europe's prospective (grim) future...
This crisis is of Germany's own making with their punitive energy policies...
How stupid do they think people are? 😕
* UPDATE July 25...
Russia is turning the screws on Europe...stock up on deodorant supplies!
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! 🤔
* UPDATE Aug. 2...
Even Germany's dead may be negatively impacted by their energy policies...
* 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"...
More proof that Germany's 'green energy' program is failing and will cause more environmental damage than conventional energy sources...
* 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...
* 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.
No wonder EU unity is fracturing, as their newly-exposed "wheelings and dealings" are becoming questionable, at best!
* 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.
* UPDATE Sept. 18...
More dire energy supply news for Europe...
* UPDATE Sept. 21...
Good news and bad news for Germany and Europe...
* UPDATE Nov. 6...
An "interesting" take on things involving Germany, the EU, China and Russia...
