Monday, December 05, 2016

Given Everything That's Happened In Italy, I'm A Little Suprised By This

At least that right-wing party didn't win in Austria, but unfortunately Renzi didn't win the referendum in Italy. Having lived in Italy for about ten years I was sad to see that result as I always felt their dysfunctional system was holding them all back from greatness. The absurdity and craziness of the Italian system was just too much for us, but I felt that asides from giving the country character and personality it was something that held them back from being a truly progressive country. It is a country that has the unlikely distinction of having had forty governments since the end of the Second World War. Thankfully as one economist wrote several weeks ago, "it's not going to change very much." Given the pattern of voting in global elections over the last few months 2016 is shaping up to be the year of "rollbacks." People have come to look at and evaluate progress differently in 2016, "and not changing very much" seems to be the theme that's developing.

In the meantime many authors and commentators have been remarking on the bullish configurations European banks seem to be making so I took a look at the Vanguard FTSE Europe ETF and a bullish move was made. I should have updated this four days ago but a "buy" single went in with a massive move that put's VGK right at resistance. We've seen a bullish crossover on the EMA's with a large gap up plus a "long/buy" signal on the RSI(5). If VGK can get above $46.75 I would consider this a very bullish development. 
Even on the 30 minute chart a "buy" signal went in around the 21st of November wherein an ascending triangle was made with today being the breakout.