Price is the only thing in the market that will pay us. Nothing else. Why doesn’t matter. Why has never paid anyone. Ever. Literally, ever. The questions to ask are What and When. The rest is bullshit.
Now, I’m not in the ‘end of the world’ camp. Far from it. But my friend and excellent technician Richard Ross put out a note Friday that brought up some interesting points. (Click Charts to Embiggen)
Ross thinks that a Euro breakdown here could, “Generate the most powerful ‘Global Sell Signal’ of our generation” (speaking of scaring the hell out of people).
We still don’t know that the Euro will complete the potential head & shoulders top formation. But we do know that this currency is a majority component of the US Dollar Index. We also know that the Dollar and Stocks have been mostly negatively correlated for years. But can the correlation change? Sure. Can the Euro hold that support and make this conversation meaningless? Sure. Is it important to recognize the possibilities and potential consequences of a breakdown in the Euro? You betcha. And this is regardless of how high you think $AAPL goes or how great that drug might be for your biotech stock. (more)