Posted Jun 4, 2015 by Martin Armstrong
The bund trade has been the bet against the euro, but Merkel is not about to abandon the euro. Discussions about changing the rules for Greece and consolidating all the debts of member states were fundamentally pointing to the bund trade reversing as well.
Currently, a weekly closing below 15020, followed by a monthly closing below 15068, will warn of a further break to the downside. June was a Directional Change and July is a key turning point, so everything has been on schedule so far. Break that channel and you will see the Sovereign Debt Crisis. You can see that our Energy Model peaked in February, warning that the upside was not sustainable with such a divergence.
Here is the weekly array. This will provide guidance for the turning points ahead on a week-by-week basis.
This is the entire reason behind the Global Market Watch. This is a tool we use to provide the biggest clients with global portfolios. Since the computer is constantly monitoring everything at all times, it allows you to see the world at a glance. No analyst can do that. In addition, the computer is never tired, sick, had a fight the night before, or distracted by romance. The computer is consistent and chugs along on its merry way. It may not be 100% perfect, for like a child it is always learning. It still is finding patterns that have not shown up before, so it learns as it develops.