SHORT SIGNAL: A2AM MILAN ITALY STOCKTry to go SHORT in area 1,255-1,260 EURO.
Stop Loss > 1,274 euro (last >= 1,275 euro).
Take Profit about 1,190 euro.
From: www.tradingbusiness.it
Please log-in into www.tradingbusiness.it
ITALY
ITALY vs GERMANY - SPREAD AT THE HIGHEST EVER - STOCKS... "when they tell you that the Spread with Germany is at its lowest ever not believe... this is the only one that is important"...
01/01/2002 - 01/08/2009 : Spread vs DAX FTSE MIB lows . Divergence contained
01/08/2009 - 01/12/2014: BOOM BREAKS Spread between DAX and FTSE MIB . After 2000 days DAX " Overperforming " FTSE MIB approximately 130% since 2002 ( euro entry)
01/12/2014 - 13/04/2015: Stocks "fee" the ECB QE . Spread vs DAX FTSE MIB at the highest ever. DAX " Overperforming " FTSE MIB 167% since 2002 ( euro entry)
EURO IS GERMAN RULES
ITA40 MAX 2014 vs 2015_+2.50% 283 daysWhile all equity markets ( DAX - SP - and today FTSE 100) are in the highest level of ever index Italian is just 2.50% up from high 2014 with a devaluation of eurusd of 20% ... also financial bubbles reflect some economic fundamentals..the italian economic is stuck at 0 % of GDP , and shows no signs of recovery...MIB index on which to speculate , and sooner or later ( QE effect) short heavily
QE effect on Italy Stock Index MIBBubble from QE on Italy Stock index
Compensation loss index value
The devaluation of the euro is offset by index
06062014 index 22500 eurusd 1:36
180316 index 22500 eurusd 1:05
theoretical value index change at 1.05 is 17500. The QE and the weakness EURUSD have created a bubble in the value of 5000 points.. is not now but in the end the bubbles burst...
Ftse mib short termThe divergence between oscillator and price movement ended the up-trend started June, 2013. The price recently tested the long term support in 19.800 area, without confirming the break. The index is expected to approach the 19.600 area on the long term support, and then starting again towards higher levels.
The advice is to wait until the price reaches 19.600 zone, then buy if the support holds, or sell in the occurrence of the break of support.
Italy chart may hint about Euro next crisisIn June, Italy broke below the downtrend line its been following since mid 2013.
After a sharp decline where it broke also below the 16.5 support zone, $EWI used the last couple of week to made a small pullback (in a form of a bearish Flag) right back into the 16.5 zone (now resistance).
Since C point (16.5) was right at the 61.8 Fib level, we may see a possible bullish AB=CD pattern which will be complete near 14$. If that's the case, we are talking about another sharp decline coming real soon.
We already saw the first bearish signal as the ETF broke below the bear Flag pattern and it seems like that the only thing that can prevent Italy from completing the pattern is another "pump" from the Fed or the ECB.
16.5 is the critical level to watch. A close above it will violate this analysis.
