Elliott Wave InternationalmyEWISocioniomics.Net
Home > European Markets

European Stocks: Buy of a Lifetime... or Time to Jump Ship?
Inside EWI's December 2011 European Financial Forecast...

By Vadim Pokhlebkin
Mon, 05 Dec 2011 17:00:00 ET
Add to Facebook Add to Twitter Email to a friend Printer Friendly

Every recent stock rally in Europe ignites the hope that the worst of the debt crisis is finally over. Yet every mini-crash that follows mocks those hopes once again... and again...

We watched ups and downs like these in 2007-2009, when the pan-European Eurostoxx 50 index witnessed at least five double-digit multi-week rallies. Each time, however, the Eurostoxx rolled over to the downside again.
 
But one day -- someday? -- Europe will rebound for real. How do you know when that moment is here?
 
One way is to look at Europe's long-term Elliott wave patterns. Be it up or down, the way they're pointing reveals the direction of the main trend.
 
 
 
  • Long-term Eurostoxx 50 Chart: Pin It on the Wall - One look at this Elliott wave-labeled chart (going back to the 1980s) will tell you if Europe is close to being out of the woods. 
  • FTSE's "Head and Shoulders": British stocks recently came to within 300 points of this classic chart pattern's key price level. A break of that level will shift the odds in favor of a radical outcome. We tell you what that price level is. 
  • Spanish Debt: It remains “investment grade,” says Moody's, and Spain’s lenders are “subject to low credit risk.” Get our assessment of risk for Europe’s bondholders -- one based on objective Elliott wave analysis. 
  • French Bonds: Aaa! On November 10, Standard & Poor’s set off a firestorm by mistakenly suggesting that France would lose its Aaa rating. Yet the credit markets are the real judge and jury, and we tell you how they view France's creditworthiness. 
  • Bank of England Is At It Again: After a 22-month hiatus, the Bank of England reinitiated (on Oct. 6) its Asset Purchase Program a.k.a. quantitative easing. See our eye-opening timeline of the BOE's previous stimuli efforts, plotted on a FTSE chart. 
  • Oh, the Euro: Since its 1.4944 peak in May 2011, the euro has stair-stepped lower against the dollar -- and has been rising and falling together with stocks, as anticipated. See our latest Elliott wave-labeled chart for an updated forecast. 
  • German Business Climate Index Falls: A contrarian "buy" signal? After all, Germany is the sole remaining powerhouse in Europe. Take a look at our wave labels for the German DAX index, and you'll know the answer. 
  • Amidst the Crisis, an Opportunity: UK's "pound shops" and pawnbrokers have done well lately. Get our take on whether the trend should continue. 

Tap into these insights now via a RISK-FREE, instant-access subscription to The European Financial Forecast Service. (You also get instant access to the still-valuable November 2011 European Financial Forecast.)


Get Ahead and Stay Ahead of the Investment Herd in 12+ European Markets

The European Financial Forecast Service gives you an independent look at European markets that you won't get from mainstream experts on either side of the pond.

Rating: - based on [7 rating(s)]
Rate this content:
  


EFFThe European Financial Forecast gives you an invaluable big-picture outlook for major European bourses to give you an edge over the investing herd.

Each monthly 10-page issue gives you timely, Elliott wave analysis and forecasts of the DAX, FTSE, CAC, Euro Stoxx 50 and more, plus commentary on economic and social trends.

Preview the Latest European Financial Forecast Now>>
Free Report


The European Debt Crisis

The European Debt Crisis is affecting investments across the globe. Our new free report offers commentary from February 2010 through November 2011 that will help you to better understand what could be in store in the coming months and years.
Download your FREE report now.

European Markets


© 2014 Elliott Wave International

The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.