Last week’s moves were entirely based on the fact that stocks are now tracking the Euro almost tick for tick. And last week, the Euro hit “take off,” despite the clear indications that Europe is facing systemic failure (the entire banking system is leveraged at Lehman-like levels and European sovereigns are facing failed bond auctions on a weekly basis).
From a technical standpoint, stocks are now coming up against the 50% retracement level:
I mentioned that last week could be a potential top. I still hold that view and would consider anywhere between today’s levels and 1,250 (MAJOR resistance) to be a spot to lighten up on longs and establish shorts.
Indeed, deflation looks to be the dominate theme in the markets today. Gold is having trouble catching a bid:
While Treasuries are bouncing off support and look ready to start a new leg up.
Inflation hedges falling, Treasuries rallying… this is a deflationary backdrop. And it’s occurring at a time when the EU is talking about launching a LEVERAGED version of the EFSF and the Fed has hinted at launching another version of QE 1???
Folks, something VERY bad is brewing behind the scenes. The Sarkozy- Merkel talks, the short-selling bans, the halted stocks, the leveraged EFSF, the hints of QE 3, all of this is telling us that the financial system is on DEFCON 1 Red Alert.
Ignore stocks, they’re ALWAYS the last to “get it.” The credit markets are jamming up just like they did in 2008. The banking system is flashing all the same signals as well.
So if you have not already taken steps to prepare for systemic failure, you NEED to do so NOW. We’re literally at most a few months, and very likely just a few weeks from Europe’s banks imploding.
I’ve already alerted Private Wealth Advisory to 12 CRISIS trades (three for Europe, nine for the US) that will all produce HUGE profits as this mess collapses.
We’ve also taken steps to prepare our loved ones and personal finances for systemic risk with my Protect Your Family, Protect Your Savings, and Protect Your Portfolio Special Reports.
With a total of 20 pages, these reports outline:
1) how to prepare for bank holidays
2) which banks to avoid
3) how much bullion to own
4) how much cash is needed to get through systemic crises
5) how much food to stockpile, what kind to get, and where to get it
I can do the same for you. All you need to do is take out a subscription to my Private Wealth Advisory newsletter.
You’ll immediate be given access to the Private Wealth Advisory archives, including my Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports.
You’ll also join my private client list in receive my bi-weekly market commentaries as well as my real time investment alerts, telling you exactly when to buy and sell an investment and what prices to pay (we’ve recently closed out 14 straight winners).
All of this, for one full year, for just $199.99… but not much longer.
Indeed, we are raising the price of Private Wealth Advisory from $199 to $249 at the end of October. The reason is simple: both the performance of our picks (we’ve just closed out 14 straight winners) and the quality of our research (we predicted the 2008 bust, the Euro 2010 bust, the August 2011 collapse, and more) warrant a premium price.
So we’re raising the price of Private Wealth Advisory to $249 at the end of October.
To take out an annual subscription to Private Wealth Advisory now, lock in the soon to be old price of $249, and start taking steps to insure your loved ones and personal finances move through the coming storm safely…