The view from Captain Pickard
EUROPEAN OUTLOOK
07.37
Among more rational observers, the consensus appears to be that the stock markets are waiting for some evidence of progress from Spain. The Spanish government is expected to request formal assistance from Europe in the very near future, which is seen as a necessary development towards assuaging the crisis there and in the Eurozone more generally. Once this happens, investors will be able to focus once more upon the central banks’ latest initiatives, which have the potential to drive risky assets significantly higher, in my view.
The current pause in European stocks is nothing out of the ordinary. At its recent lows, the DAX was just 3.5% off its highs. And, the current correction is now only 7 sessions old. Late August’s pause lasted 11 sessions, as did February’s.
Interestingly 11 trading days are a Gann number... Htw