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VIDEO: Why We Turned Bullish on Swiss SMI Index on May 16
Simple Elliott wave analysis does the trick
By Vadim Pokhlebkin
Tue, 24 Jul 2012 19:15:00 ET
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This year, Swiss stocks followed the old investment adage "sell in May and go away" to a T: In May, The SMI saw some of the biggest declines in months. Here's what the news was saying: 

  • "Most Swiss Stocks Decline as Greece Calls New Elections" (May 15, Bloomberg)
  • "Swiss Stocks Post Biggest Weekly Decline Since November" (May 18, Business Week)

The overall mood was that of "nervousness" over the Greek crisis, Moody's bank downgrades, and the rest of Europe's recent troubles. From the standpoint of the market "fundamentals," there was little to be happy about. And yet that was precisely the point when our own European Short Term Update turned bullish on the SMI.

The optimistic view was based strictly on the rudimentary Elliott wave analysis of the SMI charts. Watch the video that The European Short Term Update Chris Carolan recorded for the subscribers on May 16:

 

Today, the SMI trades at least 5% higher where it was in May. Look below for details on how to read the latest European Short Term Update online now.


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Tags: diversification, europe, European debt crisis, european markets, Greek debt, Relative Strength Index (RSI), Swiss franc, Swiss Market Index (SMI)
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