Grillini Storms Italy

David Fry's picture















“For many young Greeks, the election in Italy now provides a model. If the population of the third-largest economy in the euro zone so openly opposes the austerity measures, then the exit of individual countries from the euro zone is no longer taboo.” Der Spiegel 


Italy will be holding another election, which puts the country in a dead calm until there is a functioning government. The key in Italy is the outsider and comedian Beppe Grillo whose party has put the government in dysfunction and in parallel has created a monster of an uprising against corruption within both political parties. The movement itself is larger than Grillo and may be the well-springs of copycat movements throughout southern Europe that threatens the euro and the establishment. It’s a disruptive a movement and would be like a Ron Paul to U.S. political parties. No matter the outcome, the bottom line is Italy will remain a drag on eurozone equity prices until there is a resolution.


There was little U.S. domestic news Monday. Most news that mattered was from China and some further angst from the eurozone given Italy. Chinese ISM Services Index was weaker than expected, but of greater importance is the government lowered the boom on the property market bubble. It declared a 20% tax on property gains, raised down payment requirements and interest rates. This put the Shanghai CSI 300 Index (similar to our S&P 500 Index) down to two-year lows. China’s troubles at this stage and of their size matter hugely and have ripple effects throughout the globe. It’s more than just a flat tire that will slow global economic growth. This particularly will negatively affect emerging markets dependent on exports to China.


U.S. markets fell early and then rallied, not coincidentally, with Fed Vice-Chair Janet Yellen stating: “At present I view the balance of risks as still calling for a highly accommodative monetary policy.” Algos immediately hit the buy-button driving markets higher. There’s little question in my mind the financial media and product promoters want the DJIA record to suck more money into markets from Main Street. To get that record, they’ll do what they have to do. They’ll put issues like a weakening China, the sequester nonevent and eurozone on the back burner while they can.


Stocks were led higher by the bigger names in indexes like the Dow, which include IBM, WMT, MRK and HD. High-priced stocks in price-weighted indexes may deceive investors as to what’s really taking place in broad markets. You have to be in the right sectors like Transports (IYT) and biotech (IBB) which were standout performers. As usual, there were a few stocks orphaned like JC Penney (JCP) now down 23% in one week.


For subscribers to the ETF Digest we raised cash to 50% Monday in our flagship model portfolio. It will be interesting to see if QE just trumps all bad news that seems ubiquitous. However, at the same time we launched a new All-Weather Model Portfolio, which will remain fully invested. We also did a brief video profile of the consumer sector (XLY) which is free to view.


Below is an internal weekly chart of EEM (iShares Emerging Market ETF), which is annotated primarily by weekly DeMark 1-9 sequential counts. The 9-count was registered the week of January 18, 2013. That was a good top call. The subsequent decline is very much related to current events in China and how it negatively affects the country constituents of EEM












































Tuesday is just the ISM Non-Mfg Index which with an expected reading around 55.


I just believe the DJIA will hit and take out its previous all time high. There will be pompoms and much fanfare. Bullish talking heads will be on TV promoting “what are you buying now” advice.

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jwoop66's picture

The most info I could find on this guy came from this.  I found plenty vagaries elsewhere, and I even went to his blog, but this site seemed to have the most info. 

 I got no dog in this hunt.

christofay's picture

He's not a savior. He's been working on this for a few years. What you are mistaken about is perhaps this guy is trying to make our elites be honest. And several people want to applaud that. This type of comment, "Just a false flag fascist doing a job for the elites.    Don't be so quick to jump on the "lets kiss his ass" bandwagon," is also the type of thing to expect from a central government plant for disinformation, which isn't to say that you are a central government plant, but this is the type of comment that a plant would write as there is no hope and change, only status quo, status quo is our savior.

jwoop66's picture

Just a false flag fascist doing a job for the elites.    Don't be so quick to jump on the "lets kiss his ass" bandwagon. It amazes me how quickly so many are willing to tag people they know very little about with "saviour" status.  


Breathe, people...

christofay's picture

Occupy Wall Street is our effort in the United States. Once Obama realized that OWS wasn't going to be a patsy front org for the Democrats as the Tea Partay turned into for the Republicans he moved the power of the central government to shut it down.

To make clear the depravity of our elites there should be odds on the length of Grillo's life on that English trend prediction site, or whereever they place odds on events such as a presidential election.

bunnyswanson's picture

I am sorry to report that OWS was a creation by George Soros, an elitist, who financed and promoted the "occupy wall street" movement globally.  Smart snazzy Hollywood quality promotions, rock start music and tens of thousands of hurting people brought out the rebels, future potential leaders and the lost souls, all to be recorded, categorized and dealt with accordingly (sit down and shut up).

Try a new name:  The "Say It Ain't So" movement. 

 The word "occupation" is just one reason a new name is probably a good idea for a movement which is meant to restore law and order.  Trust no one.  Verify everything.  Get a lie detector machine for the next movement.  And by the way, I donated to this movement, and was behind it 100%.  But this is not Kansas anymore and there is no time to be wrong anymore.

"....Mr. Soros said here are three things we can do, simply." One?

GEORGE SOROS:Well, deal with the mortgage problem. Reduce foreclosures. Recapitalize the banks. And then work on a better world order where we work together to resolve problems that confront humanity like global warming. And I think that dealing with global warming will require a lot of investment.

You see, for the last 25 years the world economy, the motor of the world economy that has been driving it was consumption by the American consumer who has been spending more than he has been saving, all right? Than he's been producing. So that motor is now switched off. It's finished. It's run out of — can't continue. You need a new motor. And we have a big problem. Global warming. It requires big investment. And that could be the motor of the world economy in the years to come.

BILL MOYERS:Putting more money in, building infrastructure, converting to green technology.

GEORGE SOROS:Instead of consuming, building an electricity grid, saving on energy, rewiring the houses, adjusting your lifestyle where energy has got to cost more until it you introduce those new things. So it will be painful. But at least we will survive and not cook.

BILL MOYERS:You're talking about this being the end of an era and needing to create a whole new paradigm for the economic model of the country, of the world, right?
NuYawkFrankie's picture

Make no mistake -


Beppe 'Sicilian Salute' Grillo is the man from nowhere ... that will change everything.

The 'Gods' have provided.

Peter Pan's picture

You can bet your bottom dollar that certain vested interests are doing their best to unearth information or do damage to the persona of Beppe Grillo.

This too will fizzle unfortunately because people are not hungry enough (yet).

On top of that the scare tactics of the presstitutes will do the rest.

You only have to look at what the Arab Spring in the mid east has done for the populace.

christofay's picture

What can top Bushoconi's Viagraisms or the latest news from the Cahtholic Church? What can the media due to portray Grillo as depraved? He isn't seeking prestige and position for himself, "Hope and Change" parade style. If the mud slinging does start in will be for America-sheep to build a story as Grillo as the loose cannon.

How much did Christopher the Toad Dodd make last year?

ebworthen's picture

We need a Ron Paul in the U.S.

Poor Ron was sidelined by the media and TPTB, and is a polite elder statesman.

We need a person in the U.S. who doesn't care about either political party and has never been in "the dome" of D.C.

Too bad George Carlin is gone.

q99x2's picture

To hell with old politicians, prostitutes and the bunga bunga. Young lovers unite in social change. Life has new meaning in something that banksters can't offer. Long live the revolution.

Notarocketscientist's picture



Treason Season's picture

On Italy, those with more than a passing interest in the country might enjoy the vid by Mary Beard..