The markets are in a perilous condition today.

We’ve been noting for months that the markets were displaying signs of a top. Among other items, we recently noted:

1)   Margin debt (when investors borrow money to buy stocks) has hit new all time highs.

2)   The number of bearish investors has hit an all time low.

3)   Market leaders have peaked or are peaking.

4)   Market breadth (the number of stocks that are rallying) is falling.

5)   Earnings are falling at key economic bellweathers.

6)   Stocks have diverged dramatically from earnings and revenues.

Of course, market tops always take longer than one expects. The weakness of the S&P 500 over the last few weeks isn’t too promising.

A break below this line would open the door to a more serious correction, possibly to 1,700.

The key item to note would be if the market does correct in a big way while the Fed was engaged in its $85 billion per month QE plan. We’ve never had a correction greater than 5% since the Fed announced QE 3 and QE 4. A 5% correction from the most recent peak would bring us to 1,710.

That would be the key line to watch. I’ve drawn it in the chart below.

Is the market topping? It’s too early to tell. But for certain we are in a bubble. It’s just a question of when it bursts.

If you’re looking for actionable investment strategies on playing the markets, take a look at my monthly investment newsletter, Private Wealth Advisory.

Published on the third Wednesday of every month after the market closes, Private Wealth Advisory, shows individual investors how to beat the market with well-timed unique investments.

To whit Private Wealth Advisory is the only newsletter to have shown investors 72 straight winning trades and no losers during a 12-month period.

Indeed, in the last four months alone we’ve locked in gains of 8%, 12%, 21% and even 28%... with an average holding period of 3-4 weeks.

To find out more about Private Wealth Advisory and how it can help you beat the market with your investments…

Click Here Now!

Best Regards

Graham Summers