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Europe is beginning to get tiring. All the announcements and the subsequent denials put the market through a 3 days up-down cycle. Citi says that we need to write-off Europe for the next three years. The bounce off over-sold conditions (the dead cat bounce) can’t hide material weakness in US stocks.
However, there are a couple of contrarian signals that we need to be aware of. One of them is Jim Cramer asking us to sell the rally. Usually he is a good indicator of what not to do. The other is that the S&P 500 is potentially showing an inverse H&S. As goes America, so goes the world, so watch out for that breakout.
At least one big fan of gold is waiting on the sidelines: Jim Rogers says that the yellow metal is in for a correction. Be aware.
Good luck and follow me on twitter!