Stocks around the globe are mixed today. Asian shares rode solidly higher. Except for French stocks, it is a mostly down day in Europe. The indexes are likely to be driven by headlines that emerge for a not so secret, “secret” meeting in Europe on how to resolve 2012’s debt crisis, namely Spain’s banking system.
All of the EU and the Obama administration will be begging for more spending and Eurobonds, Germany will be saying nicht. The country is prohibited from entering into such debt deals. Chancellor Merkel says she’ll consider project bonds, similar to municipal bonds in the US, but will not force and already unhappy German tax base to be on the hook for the sins of other Europeans.
Top Equity News expects to see rumors and headlines that proclaim a solution is at hand. Such chatter will light up the equity boards for a couple of days, maybe a few weeks as it will be interpreted as spend, baby spend.
TEN’s not buying it. These problems are structural and require treatment. Like lung cancer acquired by smoking, the cure requires sacrifice and pain and cannot be papered over with more cigarettes.
Debt is the problem, and Top Equity wonders about the logic of more debt to fix a debt problem? Sure it could bump GDP enough to get a few politicians re-elected, but eventually the patient (citizens) could be faced with a terminal economic situation versus a curable form.
Despite news that could provide a short-term lift to stocks, Top Equity is sticking to the view that the indexes will find their way lower than last Friday’s close. Investors should still focus their attention on the sector that appear ready to under/outperform the S&P 500.
EMERGING BUY: industries with positive technical analysis traits that are in the early stages, indicating possible above average returns in the near-term:
Electricity
Food Retail & Wholesale
Gold Mining
Food Producers
MATURE BUY: industries that have outperformed and their charts suggest the above average returns could continue:
Broadcasting
Beverages
Personal Products
Specialty Construction
Food/Drug
Food & Beverage
Fixed Telecom
Pharmaceuticals
Drug Retail
Soft Drinks
General Retailers
MATURE SELL: industries that have underperformed and, based on their current chart patterns, could continue to lag:
Asset Managers
Electronic Equipment
Auto Parts
Business Training
Banks
Gambling
Industrials
Industrial Engineering
Real Estate
Investments
Commercial Vehicles
Heavy Construction
Life Insurance
Furnishings
EMERGING SELL: industries that have fresh negative technical analysis set ups and could have subpar performance in the weeks ahead:
Construction and Materials
Industrial Machinery
Durable Household Products
Sector Selector: Spain’s a Pain is an article from: 
