Can We Retake the Trendline?

As noted last week, the markets will likely rally into the Fourth of July. Most “analysts” will view this as a sign that the initial drop down from two weeks ago was a fluke and it’s time to “buy the dip.”

However this move was to be expected based on technical formations alone. As I noted last week,

This move could take us as high as 1,625. However, if the market fails to reclaim its trendline we’re going down as far as 1,500 in short notice. And if we take out that level we’re in BIG TROUBLE.

Watch the below line. If we can’t get above it, we’re going DOWN fast.

There’s no shortage of reasons…

For starters, Japan’s economy is imploding, despite a record QE in place: domestic car sales plunged 15% from the year before.  So much for the view that the economy was improving courtesy of Japan announcing its NINTH QE effort equal to over 20% of its GDP.

In Europe, the powers that be have decided to make what happened in Cyprus (steal people’s money to fund a bailout) the template for all banking crises going forward. Anyone with an iota of common sense knows is going to lead to banking runs… which in a banking system with leverage at 26-to-1 is that last thing Europe needs.

And then there’s the US where GDP growth was revised SHARPLY lower due to a drop in consumer spending. Consumer spending accounts for 70% of GDP in the US. Guess how this will play out going forward?

This is just the start. I warned Private Wealth Advisory subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.

This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.

If you are not preparing in advance for this, the time to get started is NOW.

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 (one is up 12% this today alone). In fact we just closed another yesterday bringing our new winning streak to NINE trades.

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… To join us…

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Best Regards,

Graham Summers









Posted by Phoenix Capital Research