Italian bonds skyrocket as the Euro crashes. Today, we received a major sell signal on the Euro against the dollar. Today was a game changer, as we now have all our Trade Triangles in a sell mode versus the Euro. Next stop for the Euro is 1.3000 in the short term.

As discussed for quite some time, nothing has changed in Europe besides a lot of posturing and delay tactics. The bottom line is, Europe is in serious trouble and the man who got us into this mess, Jean-Claude Trichet, has retired and has hopefully left the world stage.

With soaring yields on Italian bonds, the euro crashing, it is only a matter of time before we see other fractures in the global financial system coming into focus.

For some time now, the gold market has been telling us to be very concerned about what is happening in Europe. Greece was just the first act, Italy is the main event. The final act will come next year in this three part tragedy.

One last thing… Don’t bet on Berlusconi resigning. He didn’t get to be an Italian billionaire by playing by the rules.