Deflation in the EZ is increasing and that together with the Ukrainian problems makes European bourses a shorting plumb.
But I have to hold myself back. My indicators and charts tell me there is an excellent chance that the euro could turn around and briefly climb. And what could cause that?
An some stage the ECB will have want to do some form of QE (easing, bond purchases and the like) and Germany will cave in. Once that news hits European markets, there should be the mother of all rallies thus taking the shorts out at the knees.
70/30 chance of EZ easing sometime this year (Sept. Oct.).
The DAX looks so feeble! I'll be keeping stops real close.
