STOXX600, Europe’s best

STOXX600 febr 25 2015stoxx600 s febr. 2015

This is fascinating stuff. The represents the broadest selection of European stocks. All those names that everybody recognizes even on this side of the pond are in it. Bayer, Phillips, Unilever, Nestle etc. etc. are probable in there. I think it is a sell. Here are a few reasons;

a. We are up about 30% in the last 4-5 months.

b. We are outside the channel of the past 3 years, or arguable last six years.

c. There appears to be a seven year cycle between tops and bottoms, reminescent of the   Brenner cycle 7-8-9.

d. Soon the tops will connect, on a downward line proving that buy and hold sometimes does not work for 16 years.

e. RSI is getting overbought and MACD is turning.

f. If you were lucky to survive the first dive, and then the second dive are you in the mood for the 3d dive just as you are closing in on retirement?

g. Wave 5 looks very much like a wedge, not good.