Bill Gross, who manages the world’s largest bond fund, has indicated that the 30+ year old super cycle bull market in bonds has ended. This is very bad news for the markets.

First and foremost, if bonds fall, rates will increase. With higher rates, it will be harder to meet debt obligations. This will be the case for corporations as well as sovereign nations.

For the former, this means that more money going towards paying off debt and less going to shareholders. For the latter, sovereigns, this means default. Most sovereign nations in the developed world are sporting Debt to GDP ratios above 100%. These levels are just manageable with interest rates at record lows. When interest rates rise, default becomes a very real possibility.

In the case of the US, a 1% rise in interest rates means more than $100 billion more in interest payments. That money has to come from somewhere… which means either taxes going up, or the Government spending less on various programs.

For Europe, a 1% rise in rates can be almost deadly. Italy and Spain were both thought to be rock solid members of the EU. Once their ten year rates rose to 7%, they were suddenly on the verge of default.

And for Japan, if rates rise just a few percentage points, the entire system collapses.

For investors trying to navigate this market, it’s critical to note that the last bear market in bonds ended over 31 years ago.

This means that there is an entire generation of investment professionals and money managers who have never invested during a bear market in bonds. So many of these folks will be in a totally new environment.

Investors, take note… stocks are always the last to “get it.” This bubble will end as all bubbles do: in disaster.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

 

 

 

The stock market is completely and totally out of control.

Eight of the last ten closes have been new record highs. It’s now been six months since we had a 5% correction. Traders got us to 1,650 on the S&P 500.

At this point, no long term investor in their right mind should be buying. This is especially true given that the S&P 500 is now not only totally disconnected from economic reality, but is disconnected from every other asset class.

Check out the divergence between stocks, Gold, Copper, and Oil. Do you think the latter three are more or less sensitive to the Fed slowing QE?

Better yet, take a look at the divergence between bonds and stocks. Ever since early May, stocks have gone straight up while bonds, a “smarter” asset class that is more sensitive to the threat of QE tapering, have fallen.

And again, the US Dollar is rallying (another indication QE is likely to taper). The currency markets are even larger and more sophisticated than bonds…

Investors, take note… stocks are always the last to “get it.” This bubble will end as all bubbles do: in disaster.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

The markets are rallying because today is Tuesday. Stocks have rallied every Tuesday for the last 17 weeks and traders are now conditioned to play for this move. It’s also a POMO day (meaning the Fed is pumping the markets), which adds fuel to the fire for a stock rally.

The market is beyond overstretched. We have not had a 5% correction in six months. Stocks have gone almost straight up for 89 days (we haven’t had a 3+day correction in that long).  This is an all time record. The last time stocks rallied without a 3+ day correction was in the buildup to the Crash of 1987.

Check out the chart of Stocks vs. Copper.

Copper is great at predicting economic growth. Stocks are not. And the major divergences between the two tend to be resolved sharply (notice the sharp correction in Copper in late 2011).

With that in mind, either Copper needs to ERUPT higher as the world economy comes roaring back… or stocks need to drop BIG TIME.

Guess which one it will be? Do you think this might have something to do with why Bernanke is worried about potential for “sharp moves” in the markets?

Between this, rampant insider selling (makes you wonder if the people running the companies know something about the economy the Fed is ignoring), the downturn in economic data in the US, and the ongoing disaster that is the US jobs market, the market is priced for a total collapse.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

 

 

 

 

After the market’s close on Friday, Jon Hilsenrath at the Wall Street Journal released an article implying that the Fed might remove or reduce its QE programs before the year end.

The reason this matters is because Hilsenrath is thought to be an unofficial mouthpiece for the Fed. Time and again he’s released articles hinting at the Fed’s future policies in advance. And many believe senior Fed officials such as Bernanke will personally leak ideas to him to test the public’s response to said ideas in advance.

So many believe that Hilsenrath’s Friday article was indeed the Fed preparing the markets for a tapering or removal of QE before the year end. Given that the entire US market is moving lockstep with Fed activity (the Fed’s balance sheet has literally reflated the NYSE tick for tick post 2009) this is a huge deal.

This supports our view that the Fed is aware stocks are in a bubble and is attempting to prep the market in advance for less liquidity.

Since QE 2, the negative effects of QE (higher costs of living) have outweighed the positive effects (higher stock prices) by a wide margin. Only 52% of US households own stocks… but everyone is paying for higher food and higher energy prices.

On a deeper level, QE is a drug for the market. There is no evidence in history that QE creates jobs or growth Both Japan and the UK have launched QE equal to over 20% of their GDP, neither have experienced a significant pickup in jobs or GDP growth as a result.

So QE was always about one thing only: pushing the market higher. But now the market is completely detached from economic realities. There is a word for this… it’s “bubble.”

The Fed knows this and is now trying to prepare the market for withdrawal. But the market is on total life support from the Fed. Take away the Fed punchbowl and the party stops.

Between this, rampant insider selling (makes you wonder if the people running the companies know something about the economy the Fed is ignoring), the downturn in economic data in the US, and the ongoing disaster that is the US jobs market, the market is priced for a total collapse.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

 

 

 

 

 

 

Japan should serve as a lesson to central planners around the world.

Japan’s stock market/ real estate bubble burst in the early ‘90s. Since that time Japan has launched NINE QE efforts equal to roughly 25% of its GDP. And GDP growth has worsened despite these efforts from 2% to 1%. Ditto for employment.

Japan elected a new Prime Minister Shinzo Abe in September 2012. Since that time, his primary belief has been that Japan hasn’t engaged in enough stimulus. He threatened the Bank of Japan to get working… and it did, announcing a $1.4 trillion stimulus last month.

Since that time, the Yen has positively imploded. It broke below 100 yesterday for the first time in years. It’s now fast approaching the long-term trend line. When we take this out, it’s GAME OVER for the great monetary experiment of Japan.

Japan has a Debt to GDP of over 200%. Japan’s demographics are terrible (the country sells more adult diapers than child diapers). Its economy has been imploding for 20 years, and now its truly epic bond bubble is on the verge of collapse as well.

If you thought Greece was bad for the financial system, wait until you see what Japan will do to it.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

Stocks are officially in a blow-off top.

This is the culmination of Bernanke’s life’s work. In his mind he has succeeded in saving capitalism by spending trillions of Dollars pushing stocks higher.

It doesn’t matter that the US hasn’t experienced 3% GDP growth a SINGLE year since he took the Fed. It doesn’t matter that the employment ratio is at levels last seen back in the early ‘80s. It doesn’t matter that there are now a record number of Americans on food stamps.

All that matters is that stocks are up. That equals a recovery for the Fed.

This whole mess is sad really. Having seen two bubbles burst in the last 13 years, we all know how this ends: in disaster. And each time the disaster has been bigger. Indeed, the 2008 collapse was a far worse thing than the Tech Crash.

And what’s coming will be even worse than 2008. This time around, entire countries will go bust, not just banks.

On top of this, when this bubble bursts, interest rates will already be at zero and the Fed’s balance sheet swollen with garbage debts. The Fed and other Central Banks WON’T have the usual tools available to save the day.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stocks are now beyond overbought. The market ramped on Tuesday (the 17^th straight Tuesday rally by the way) because traders are now playing for Tuesday rallies.

The financial media is looking for any and all reasons to justify the move, but the fact is that the market had rallied for 16 straight Tuesdays before… so why not a 17^th time?

Behind this backdrop things only worsen. The divergence between stocks and the economy is growing rapidly. Stocks are now over 4% above their 50-DMAs. Anytime stocks have been this far above their 50-DMAs in the last four years we’ve seen a correction:

The overbought nature of the market is even more obvious when you compare the S&P 500 to its 200-DMA:

It is clear now we are in something of a blow off top. How long it will last is anyone’s guess, but investors are far too bullish given the fundamentals. The long, “risk on” trade is so lopsided it’s not even funny.

Maybe this time is different… maybe stocks will only go straight up forever. Maybe this bubble, unlike the last two, will not burst.

Or maybe it’s time to start prepping for the next stock collapse.

Investors take note, the market may be hitting new highs thanks to traders’ games, but the real economy is contracting sharply. This is precisely what happened during the market peaks before the Tech Crash and the 2008 Collapse.

We are getting precisely the same warnings this time around.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

 

 

 

 

 

 

 

The market is beyond overstretched at this point on a short-term, intermediate term, and long-term basis. The sheer number of warning signals is staggering.

The blow off top out of the rising wedge pattern we noted before is rolling over indicating this is likely a false breakout:

The Russell 2000 is lagging well behind the S&P 500. Small caps, in general, should lead a rally if it’s going to prove legit:

China, which has lead the S&P 500 in general since the 2009 bottom peaked months ago:

Copper, which serves as an excellent proxy for the global economy, is collapsing, showing that this rally in stocks is occurring while the global economy gets weaker and weaker.

Investors take note, the market may be hitting new highs thanks to traders’ games, but the real economy is contracting sharply. This is precisely what happened during the market peaks before the Tech Crash and the 2008 Collapse.

We are getting precisely the same warnings this time around.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

 

 

 

 

 

 

The media is jumping for joy over last week’s US jobs numbers. But beneath the veneer of headline numbers lies a truly horrible economic reality.

Let’s have a look at the two key economies for the world: China and the US.

For starters, China’s recent economic data, as massaged as it is to the upside, is downright awful. China’s PMI numbers were the worst in two years. Staffing levels in the Chinese service sector decreased for the first time since January 2009 (remember that year).

China’s LEI also shows no sign of recovery. If anything, it indicates China is heading towards an economic slowdown on par with that of 2008. And if you account for the rampant debt fueling China’s economy you could easily argue that China is posting 0% GDP growth today.

In the US, last week’s jobs report didn’t look too bad until you dug deeper into the report and found that the average workweek declined by 0.2 hours from March- April.

So what you may ask… 0.2 hours? Just under a 15 minutes per week?

The issue here is that if you apply this drop to the total number of people employed in the private sector, this is the equivalent of over 21 million work hours being lost in one month.

That is the single biggest drop since April of 2009 when the US economy was absolutely imploding. It’s the numerical equivalent of firing 718,000+ people.

This is how companies deal with economic contractions. They don’t start laying people off en masse… they start cutting work hours bit by bit. The mass layoffs don’t come until the official numbers announce that we’re in a full-blown recession.

The first stage of this is already happening. 99% of investors fail to see it, but the clear signs are there.

Investors take note, the market may be hitting new highs thanks to traders’ games, but the real economy is contracting sharply. This is precisely what happened during the market peaks before the Tech Crash and the 2008 Collapse.

We are getting precisely the same warnings this time around.

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

 

 

 

 

 

 

The Fed is now blaming Congress for the failures of its QE policies.

This is to be expected, given that no one in the power elite ever accepts responsibility for their own failures. Congressional members blames each other (depending on which party they’re in), the Fed blames Congress, the White House blames the GOP, and on and on.

Behind this façade of bickering is the total and complete failure of the Fed’s policies to generate economic growth OR jobs. Regarding #1, the US has not had a single year of 3% GDP growth since Bernanke became Fed Chairman. End of story.

As for QE… there is not one single example in history in which QE has successfully created jobs. The UK has engaged in QE equal to over 20% of its GDP and hasn’t seen a real recovery in employment. Similarly, Japan has employed QE equal to nearly 25% of its GDP and GDP growth continues to slow while unemployment stays elevated.

As for the US, the Fed has spent roughly $2 trillion in the last year via QE. During that time a little over, 500,000 jobs were created… So the Fed is spending roughly half a MILLION dollars to create each job.

There’s a word for this… it’s pathetic. Actually “insane” would be a better choice. This is what happens when you put Central Planners who have little if any real world experience, in charge of an economy. You spend millions of dollars to create low paying jobs.

And the Fed’s argument is to keep doing this until unemployment falls.

The fact that the Fed continues to engage in QE despite its clear failure to create jobs indicates the Fed literally is either totally clueless OR is engaging in QE for other reasons.

My view… it’s a bit of both. The Fed is largely comprised of academics like Bernanke who have little if any experience in banking (interesting that he’s in charge of the Central bank since he NEVER worked in a bank in his life) or the private sector.

Indeed, even the pro-Wall Street crowd at the Fed (Dudley and Evans) don’t see how their policies are crushing the banking sector. Citigroup plans to lay off 11,000. JP Morgan is laying off 14,000. Morgan Stanley is laying off 1,600.

And yet the Evans and Dudley keep asking for more QE!

Investors take note, the markets are sending multiple signals that things are not going well in the world. Companies based on the real economy are dropping hard. And it’s clear the Fed doesn’t know how to get things back on track.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

 

 

 

 

The Fed meets today and tomorrow. The ECB meets on Thursday. Those will be the defining market forces for the next three trading sessions.

There is little if any point in trying to trade this week (at least until Thursday). The Fed is notorious for leaking info to the well-connected. The most recent “accidental” sending of a report a day early is just the latest example.

In simple terms, the market will be even more of an insider’s game today and tomorrow than usual. No point trying to open a new position in that window.

However, against this backdrop the big picture for the markets is growing worse and worse.

The US is almost assuredly back in recessionary territory. This is coming on the back of the weakest recovery (if you can call it that) in post-WWII history.

The Feds hide this economic nightmare by simply not counting those who are unemployed (lower the denominator in the fraction and your unemployment ratio falls), and by using bogus deflators in their GDP growth numbers (the current CPI is 2.1%… but the Feds calculated the first quarter GDP growth numbers use an inflationary measure of 1.2%).

Change your measurements and BOOM you’ve got a recovery. It works if you’re a Government bean counter trying to keep your job. It doesn’t work so well for everyone else.

However, there are clear signs we’re heading back into recessionary territory. I think the first quarter 2013 GDP growth print is the best we’ll see all year. And it’s very possibly things will get ugly before the year ends.

Speaking of which…

Ben Bernanke has announced he won’t be attending this year’s Jackson Hole meeting. A Jackson Hole meeting without the Fed Chairman is like having a performance of Hamlet without Hamlet himself in it. Why would the single most important Central Banker not attend one of the biggest economic meetings of the year?

He claims it’s due to scheduling conflicts. As if he didn’t know about this meeting in advance.

The fact is Bernanke is likely going to step down at the end of this term in January 2014… which means the markets will be losing one of their biggest props, the famed Bernanke Put.

God help whoever fills the role in the future. Assuming things hold together until next year (a BIG assumption) the new Fed Chairman will be inheriting one of the worst messes in history.

Investors take note, the markets are sending multiple signals that things are not going well in the world. Companies based on the real economy are dropping hard.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

The markets are holding up based on hope for more stimulus from the Fed and ECB this week (Fed FOMC is Tuesday and Wednesday, the ECB meeting is on Thursday).

This is a very dangerous environment. We are entering the seasonal period in which stocks typically do poorly (May-November). Earnings guidance is falling. And even the massaged GDP number for 1Q13 was lower than expected.

In simple terms, we are getting multiple signs that the economy is slowing and heading towards recessionary territory. This is happening at the precise time that stocks are holding up on hopes of more stimulus.

The rising bearish wedge pattern in the S&P 500 that we noted last week remains in play. It should be resolved this week. However, multiple economic bellweathers are already warning DANGER DANGER!

Below is a price performance chart for the S&P 500 against Fed EX (postage and shipping), Arcelor Mittal (steel), and Caterpillar (machinery). As you can see, the real economy is falling. But stocks keep holding up.

We’ve seen this kind of divergence between stocks and the economy before in 2008. We all know how that ended.

Investors take note, the markets are sending multiple signals that things are not going well in the world. Companies based on the real economy are dropping hard.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

For the last four years, the financial world has traded largely based on hope of more intervention from Central Banks.

That was and is the single driving factor of the markets. Good news was good news (it’s a recovery!) but bad news was even better (the Fed will have to print more money!) as far as stocks were concerned.

However, against this backdrop several issues began to develop. The single most important one was Copper, which has a great record of anticipating real economic growth:

Note that Copper signified an end to the economic “recovery” story back in 2011. Since that time, it’s been in decline. In fact, it’s just taken out its “recovery’ trendline dating back to 2009.

This signifies that the world economy is slowing. It tells us point blank that things are not well in the world.

Just as importantly, it shows that the claims that QE and Central Bank money printing generate real economic growth are false.

Copper can’t fudge statistics to meet political agendas. It doesn’t lie under oath. It moves based on supply and demand. And demand has been falling since 2011.

Investors take note, the markets are sending multiple signals that things are not going well in the world. Copper is forecasting a nasty summer.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

Since 2011, the Fed and other global Central Banks have injected over $2 trillion into the financial system. They’ve also announced plans to continue pumping money ad infinitum.

And yet for the period from 2011 until two weeks ago Gold, the inflation hedge of choice for investors, hasn’t done much of anything.

Why is this?

Part of it has to do with simple sentiment. Gold was overextended in 2011, stretched far away from its primary trendline:

On top of this, investors had gone too carried away on expectations of more Fed liquidity. QE 2, which was announced November 2010, was a mere $600 billion (not much compared to the Fed’s current programs which will extend forever). But yet Gold rose like a rocket ship starting in August when the Fed first hinted at QE 2.

Which brings us to today. This excessive enthusiasm needed to cool and Gold has done just that for the last two years. Then the Gold Crash happened and were right back at the long-term trendline.

The is the key area to watch. If Gold continues to correct, then we could go to $1200. But Gold should hold up here.

On that note, I’ve just notified subscribers of my Private Wealth Advisory newsletter to five small cap gold plays all of which are trading just above their cash levels.

Put another way, at these valuations, you’re almost getting their gold reserves and mining equipment for FREE. Talk about a cheap deal!

As I write this, all five of them are UP in a big way. One has already soared 4% today alone!

To find out what they are, all you have to do is take out a trial subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to my Special Update on these gold plays… as well as FIVE Special Reports outlining some of the biggest risks to the financial system.

These include…

The “C” Word: the Dark Secret the Fed Wants Hidden

The Inflation Secrets Your Broker Won’t Tell You About

Protect Your Family

Protect Your Savings

Protect Your Portfolio

To take out a trial subscription to Private Wealth Advisory…

Click Here Now!!!

Best Regards

Graham Summers

 

 

 

The markets rallied hard yesterday, thanks to promises of more from Europe. However, the global economy is once again contracting with the bad data coming out of both China and Germany: two of the biggest exporters in the world.

With that in mind, the S&P 500 looks as though its initial jump to the upside from its rising wedge pattern could have been a false breakout: a move was not sustained. These developments are usually followed by VIOLENT swings in the opposite direction.

Indeed, Gold showed us how these developments work.  In mid-2012, it broke upwards from a falling wedge. A lot of traders, myself included, thought this would indicate new highs were on the horizon.

Instead, Gold languished and the breakout proved to be false. And when the reversal came, it was VIOLENT:

Investors take note, a false breakout is an extremely dangerous thing. If the stock market is in fact failing to maintain its upward breakout, we could see a sharp reversal similar to that of Gold (Gold has lead stocks for much of the post-2008 period).

Investors take note, the markets are sending multiple signals that things are not going well in the world.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

Europe is leading the world higher today on two items:

 1)   EU President Barroso stating that there are limits to austerity.

2)   Spain’s Prime Minister Rajoy agreeing with Angela Merkel that nations must cede sovereignty if Europe is to last.

The first of these issues is just political grandstanding. Europe’s problems are not related to whether or not EU politicians pursue austerity or growth policies; they are related to EU bank solvency and demographics.

Europe, at its core, is a 17+ country union in which aging populations, all promised large social and welfare payments at retirement, are lining up to cash their checks at the very moment in which a massive real estate bubble collapses and threatens to take down their banking systems.

Having run up tabs that it cannot possibly hope to meet (both on a personal and a national level) Europe is now playing around with ideas like growth and austerity as though EU politicians can simply pull various levers on a macro levels and the EU economy will start roaring again.

The fact of the matter is that the only way Europe could resolve its issues would be if it started running real surpluses and seeing massive GDP growth of 3+ per year for at least five years.

That would be growth. But the chances of Europe doing that are less than 1%.

As for #2, Rajoy isn’t saying anything new or meaningful. Ceding sovereignty won’t solve Europe’s problems. Germany doesn’t have the funds to hold the union together (even if it wanted to).

Germany is already sporting a Debt to GDP of 81%. When you include unfunded liabilities its over 200%. The country’s export driven economy is at risk due to a global economic slowdown. And if things should get ugly globally, Germany will be in no position to hold Europe together.

All in all, the markets are falling for the same ploy they’ve fallen for dozens of times in the last few months: more political promises from those who cannot and will not do what is needed to solve the region’s problems.

How long this latest pop lasts remains to be seen. But the clear signals are already in place that the global economy is slowing once again. And now amount of political posturing will solve that.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

The mainstream media is rife with investment “experts” who missed the 10- year bull market in Gold and Silver. These guys are now high fiving about Gold’s drop, like they’re geniuses for avoiding precious metals in the past.

Gold doesn’t produce cash flows or pay a dividend, it the manta for these folks. Too bad for them Gold has outperformed stocks on both a 10 year AND a 50 year basis. There are of course exceptions to this in the form of investing geniuses who use compounding to crush the markets… but given that most money managers don’t beat the market and Gold does… one has to ponder these things.

Sure, Gold doesn’t pay a dividend… but it doesn’t charge commissions, tell you to buy a garbage stock, back date options with its executive board, or commit accounting fraud either.

Gold doesn’t go out of business. It doesn’t get insider information and use it against you. Gold doesn’t make money taking the other side of your trades. It doesn’t front-run your stock orders.

Gold also doesn’t create artificial bids in the market. It doesn’t cause flash crashes. Gold doesn’t use your funds to bail itself out and then parade around fundraising for politicians.

Gold doesn’t blow stock bubbles. It doesn’t manipulate data. Gold doesn’t control interest rates to benefit the big banks at the expense of everyone else. Gold doesn’t lie under oath, nor does it channel the public’s money into foreign banks.

Also, you cannot print Gold. Gold doesn’t violate property rights laws or steal your deposits. Indeed, Gold is essentially one of the few forms of investments that gets your capital OUT of Central banker hands.

One wonders how things would go for Cyprus individuals who had their deposits in Gold in their own custody as opposed to sitting in the award winning Cyprus banks.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

 

 

 

If you happened to simply glance over the headlines in the financial media over the last few months, you’d think the European Crisis was over.

In November, no less than France’s Prime Minister, Spain’s Prime Minister, and even Germany’s Finance Minister suggested that the worst is over for the Euro Crisis or that the Crisis as a whole was over completely.

Unfortunately for them, the markets don’t seem to agree. Indeed, EU markets have all topped or are in the process of topping and forming downtrends.

Italy stopped being in an uptrend months ago and is now in danger of taking out major support:

The same goes for Spain’s Ibex:

Even Germany’s stock market, the DAX, is breaking down in a big way.

What gives? Isn’t Europe doing great? Didn’t Mario Draghi promise to do everything he could to save the Euro?

Obviously European financials didn’t get the memo.

In the end, a Central Banker’s promise doesn’t have the binding power to hold together a $46 trillion banking system together… especially when that banking system is leveraged at 26 to 1.

Investors take note, the markets are sending multiple signals that things are not going well in the world. Europe’s markets are forecasting a nasty summer.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

 

 

 

More signs of trouble.

We’ve been told countless times that Europe was “fixed.” The problem with this is that the market is beginning to realize this is not true.

Much of the European recovery counts on Germany. The ECB owns the printing presses… but without Germany’s support, the Euro is done for.

However Germans are only going to be supportive of the Euro up to a point. That point is when the German economy contracts enough that Germany has its own problems to deal with, rather than focusing on Europe’s.

That point appears to be approaching. Germany’s economy contracted in the fourth quarter of 2012. The country has since seen its credit rating downgraded to A from A+ by Egan Jones.

The German stock market, the DAX, has officially taken out its trendline from the June 2012 low when European Central Bank President Mario Draghi promised “unlimited bond buying” to support Europe.

This is bad news for the rest of Europe. With Angela Merkel seeking re-election in September this year, Germany will be less likely to OK any more bailouts.

Europe better pray nothing goes wrong between now and then.

Watch the DAX and the Spanish Ibex. Spain as noted in Monday’s market commentary is the European canary in the coalmine. If it starts to drop… and the German DAX follows… then the contagion is back.

Investors take note, the markets are sending multiple signals that things are not going well in the world.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

The markets moved higher yesterday because frankly Tuesday is the day for upside moves: thus far in 2013, we’ve had 13 straight Tuesday gains. This, combined with the very short-term oversold basis of several markets, mainly Gold and commodities, gave the “risk on” trade a bump.

From a technical perspective, the S&P 500 is in danger of breaking several critical trendlines:

The rising wedge pattern is a consolidation pattern that can break either up or down. One of the trickiest issues is a “false breakout,” which occurs when the initial move out the pattern proves to be short-lived. False breakouts are usually followed by violent moves in the opposite direction as traders realize the initial move was false.

In today’s market, that direction would be down.

We get additional signs of trouble from Spain. It was Spain that nearly took down Europe last year. In this sense, the Spanish stock market, the Ibex, has become the proverbial “canary in the coalmine” for Europe. If the Ibex is rallying, investors believe Europe is alright. If the Ibex breaks down, then the European Crisis is back.

The Ibex has stalled and is in danger of breaking critical support:

Final indications of trouble come from earnings. We’ve had a slew of corporations beating earnings guidance (which isn’t too difficult given how easy it is to manipulate profits) but missing revenues.

Coke, Goldman Sachs, Yahoo! all did this yesterday. They join Blackberry, US Bancorp, St Jude Medical and others.

Revenues are much harder to fudge than profits. They are more closely tied to the economy. So if revenues are missing estimates, it can be a warning that the economy is slowing.

Investors take note, the markets are sending multiple signals that things are not going well in the world.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just seen another SIX trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers