Europe on the rise
By Colin Twiggs
March 18th, 2012 6:00 a.m. ET (10:00 p.m. AET)
Dow Jones Europe Index broke through 260 to signal a primary up-trend. Respect of the zero line by 13-week Twiggs Money Flow confirms strong buying pressure. Target for the advance is 310*.
* Target calculations: 260 + ( 260 - 210 ) = 310
Italy's MIB Index reflects a similar pattern, signaling an advance to 21000*.
* Target calculations: 17 + ( 17 - 13 ) = 21
The FTSE 100 is already in a primary up-trend. A trough high above zero on 13-week Twiggs Money Flow indicates strong buying pressure and a likely breakout above resistance at 6100.
* Target calculations: 5700 + ( 5700 - 5000 ) = 6400
The DAX shows similar strong buying pressure and breakout above the 2011 high of 7500 is likely.
* Target calculations: 6400 + ( 6400 - 5700 ) = 7400
Let me introduce Mauldin's Rule of Thumb Concerning Unintended Consequences:
For every government law hurriedly passed in response to a current or recent crisis, there
will be two or more unintended consequences, which will have equal or greater negative effects
then the problem it was designed to fix. A corollary is that unelected institutions are at least as
bad and possibly worse than elected governments. A further corollary is that laws passed to
appease a particular group, whether voters or a particular industry, will have at least three
unintended consequences, most of which will eventually have the opposite effect than the
intended outcomes and transfer costs to innocent bystanders.
~ John Mauldin