Month: December 2016

The momentum driven post election rally has ended. Next up is the US Dollar driven collapse in the markets.

Copper called this weeks ago as we noted before. No one listed. It’s now down nearly 10% from its peak and clinging to support for dear life.

Stocks are now following. They’ve taken out support. The bulls will claim we’re going to hold at 2,200, but the reality is we’re going to unwind the entire election move and then some. 2,050 beckons.

Indeed, stocks will be lucky if they don’t crash like they did in August ’15 based on what China’s doing with the Yuan.

While 99% of investors ignore this ticking time bomb, smart investors are already preparing.

If you’ve yet to take action to prepare for this, we offer a FREE investment report called the Prepare and Profit From the Next Financial Crisis that outlines simple, easy to follow strategies you can use to not only protect your portfolio from it, but actually produce profits.

We made 1,000 copies available for FREE the general public.

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Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Janet Yellen thinks the US Dollar is a ““cash is not a convenient store of value.”

Long-term she is correct. After all, thanks to the Fed, the $USD has lost 95% of its purchasing power over the last 100 odd years. Anyone who has kept their money in cash has generally lost money virtually non-stop.

However, in today’s world in which some $9 TRILLION in bonds are posting negative yields, cash isn’t looking so bad. Yes, you’ll still lose purchasing power over time… but the same is true if you buy bonds in Europe or Japan… just with more volatility.

Yellen’s disdain for cash isn’t that cash is a poor store of value… it’s that cash, particularly physical cash is one of the few “loopholes” in the current financial system that permits you to escape the insanity of Negative Interest Rates from Central Banks.

After all, there are two basic benefits to storing your money in a bank:

1. Security
2. Interest

With NIRP in place, #2 is no longer a benefit. If anything storing your money in a bank with NIRP means losing money.

This leaves #1: security.

But you can likely achieve the same security by buying a home safe and sitting on physical cash there. Indeed, this is precisely what consumers in Europe and Japan have done since Central Banks in those two regions employed NIRP.

This is why Yellen and her ilk hate cash. Central Banks want to force consumers to spend money or invest in risk assets by punishing deposits with NIRP. But physical cash avoids NIRP entirely.

Will this stop Central Banks? No way.

Indeed, we’ve uncovered a secret document outlining how the Fed plans to incinerate savings in the coming months.

We detail this paper and outline three investment strategies you can implement

right now to protect your capital from the Fed’s sinister plan in our Special Report

Survive the Fed’s War on Cash.

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Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Another ugly signal just hit the markets.

One of the most important metrics for global growth is the Australian Dollar. It, like Copper, is VERY closely associated with global growth.

Well, the Australian Dollar is CRASHING, having fallen 5% in December alone. Remember, this is not a stock we’re talking about… this is a CURRENCY going into a FREE-FALL.

Paired with the crash in Copper we noted last week, this is a NASTY “one, two” punch to the “growth” story for any stock market bull. With Copper and the Australian Dollar but entering free-falls… stocks are on borrowed time.

At the very least, we expect stocks to drop 9% in the next 4 weeks.

Another Crisis is brewing… the time to prepare is now.

If you’ve yet to take action to prepare for this, we offer a FREE investment report called the Prepare and Profit From the Next Financial Crisis that outlines simple, easy to follow strategies you can use to not only protect your portfolio from it, but actually produce profits.

We made 1,000 copies available for FREE the general public.

As we write this, there are fewer than 29 left.

To pick up yours, swing by….

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Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The markets are priming for a major inflection point.

I cannot remember a time when investors were more bullish. The Dow is currently more overbought (based on the 14 day relative strength index) than at any point in the last 20 years.

The peak of the Housing Bubble?

The Dow is more overbought today.

The peak of the Tech Bubble?

Again, the Dow is more overbought today.

The market is primed for a sharp reversal and correction. Everyone and I mean EVERYONE is “all in” on stocks. Hedge funds, commercial traders, even individual investors have piled into the market.

This will end badly as all manias do. We believe the market is primed for a 10% drop… possibly more.

THIS WILL HIT BEFORE THE END OF JANUARY.

Another Crisis is brewing… the time to prepare is now.

Based on this situation… we’ve decided to extend our offer to explore Private Wealth Advisory for 30 days for just $0.98.

We don’t want investors to miss out on the potential to turn this market volatility into profits. Private Wealth Advisory have a success rate of 89% with our trades (meaning we make money on nearly 9 out of 10 positions).

But we cannot maintain this track record with thousands of traders following these picks.

Tonight at midnight we’re closing the doors on our offer to explore Private Wealth Advisory for 30 days for just $0.98.

But this is IT. No more extensions.

If you want to lock in one of the remaining slots, you better move quickly.

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Graham Summers

Chief Market Strategist

Phoenix Capital Research

What is Janet Yellen thinking?

As the Fed wound down its QE program in 2014, the $USD hit liftoff. It has since hovered in the mid- to upper-‘90s.

Throughout this period, anytime the $USD began to move sharply higher one of more Fed officials appeared to “talk down” the $USD.

The reasoning here is simply. A strong $USD crushes corporate profits. Indeed, since the $USD began its bull market S&P 500 earnings have collapsed to 2012 levels.

A strong $USD also asks for trouble from China. It was the strong $USD that forced China to devalue the Yuan in August 2015 and again in December 2016… both of these times, US stocks collapsed 10% in the span of a few days.

Having said all of this… in the last month the $USD has erupted above 100 and the Fed hasn’t said a word.

Worse than this, the Fed raised rates again yesterday and has predicted THREE more rate hikes in 2017.

The Fed is doing this when the $USD is already at a 13 year high!?!?

The Fed is playing a very dangerous game both with China and with the markets. I wouldn’t be surprised to see a VERY aggressive Yuan devaluation in the next few weeks.

And it’s going to trigger a market meltdown just as it did in August 2015 and January 2016.

THIS WILL HIT BEFORE THE END OF JANUARY.

Another Crisis is brewing… the time to prepare is now.

Based on this situation… we’ve decided to extend our offer to explore Private Wealth Advisory for 30 days for just $0.98.

We don’t want investors to miss out on the potential to turn this market volatility into profits. Private Wealth Advisory have a success rate of 89% with our trades (meaning we make money on nearly 9 out of 10 positions).

But we cannot maintain this track record with thousands of traders following these picks.

Tonight at midnight we’re closing the doors on our offer to explore Private Wealth Advisory for 30 days for just $0.98.

But this is IT. No more extensions.

If you want to lock in one of the remaining slots, you better move quickly.

To lock in one of the last $0.98 30 day trials to Private Wealth Advisory…

Click Here Now!

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Just as we predicted, the Bank of Japan has begun to lose control.

Since the November US Presidential election, the Bank of Japan has been aggressively devaluing the Yen. They are doing this to take advantage of the brief window between the election and when Trump takes office and trade deals are renegotiated.

As I wrote previously, this scheme will work for a while, but eventually something will “break.”

It just did.

When the Yen collapses, the $USD rises sharply. And this is a MASSIVE problem for China which has its currency pegged to the $USD.

China is the second largest economy in the world. And every day that the $USD moves higher, it puts tremendous pressure on China’s financial system.

See the below story:

China’s foreign exchange reserves fell nearly $70bn last month as the country’s central bank burnt through more of its war chest in its battle to defend the renminbi from greater depreciation on the back of accelerating capital outflows.

Source: Financial Times

If you’ll recall, it was precisely this situation that caused the market meltdown of August 2015…and January 2016.

We’re set up for the another similar meltdown. Stocks are severely overbought. Everyone is super bullish. The markets are literally one giant lopsided trade waiting to implode.

THIS WILL HIT BEFORE THE END OF JANUARY.

Another Crisis is brewing… the time to prepare is now.

If you’ve yet to take action to prepare for this, we offer a FREE investment report called the Prepare and Profit From the Next Financial Crisis that outlines simple, easy to follow strategies you can use to not only protect your portfolio from it, but actually produce profits.

We made 1,000 copies available for FREE the general public.

As we write this, there are fewer than 29 left.

To pick up yours, swing by….

http://phoenixcapitalmarketing.com/Prepare1.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

This is getting outright ridiculous.

The Bank of Japan is now depreciating the Yen against the $USD on an almost hourly basis.

This is the Yen carry trade. And it’s the SINGLE BIGGEST DRIVER OF THE MARKETS TODAY. As you can see, in the last two weeks, the S&P 500 is following this pair almost tick for tick.

I want to be clear here… for a MAJOR world currency to move like this is almost unprecedented. By some metrics, the Yen is now moving like a currency from a developing 3^rd world country.

This price fix will break as all price fixes do. And when it does, the markets are going to crash. The S&P 500 will go to at least 2,050 if not 1,850.

That’s 18% down from here.

Another Crisis is brewing… the time to prepare is now.

If you’ve yet to take action to prepare for this, we offer a FREE investment report called the Prepare and Profit From the Next Financial Crisis that outlines simple, easy to follow strategies you can use to not only protect your portfolio from it, but actually produce profits.

We made 1,000 copies available for FREE the general public.

As we write this, there are fewer than 49 left.

To pick up yours, swing by….

http://phoenixcapitalmarketing.com/Prepare1.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Stocks are going to Crash.

This wasn’t the case a mere six weeks ago. But the Bank of Japan has committed one of the most egregious manipulations in history.

The Yen/ $USD pair has imploded by over 14% in the last six weeks. The last time the pair fell this much the BoJ expanded an already monstrous QE program by $260 BILLION.

This time around it is nothing more than abject monetary devaluation. The Bank of Japan has accomplished in SIX WEEKS what previous took $260 BILLION and SIX MONTHS.

This is absolute madness. And it is going to ANNIHILATE US corporate earnings.

Over 47% of US corporate sales come from abroad. With the $USD spiking, courtesy of the Yen devaluation, US corporations are going to be imploding in the 1H17.

The $USD ramp job of 2014 has already imploded corporate profits to 2012 levels. This next ramp to new highs is going to kick them even lower.

You can ignore this, just as the S&P 500 has done for the last six weeks. But soon this will matter in a big way.
At the very least you can expect a collapse to 2100. But 2000 and even 1864 are not out of the question.

THIS WILL HIT BEFORE JUNE OF NEXT YEAR.

Another Crisis is brewing… the time to prepare is now.

If you’ve yet to take action to prepare for this, we offer a FREE investment report called the Prepare and Profit From the Next Financial Crisis that outlines simple, easy to follow strategies you can use to not only protect your portfolio from it, but actually produce profits.

We made 1,000 copies available for FREE the general public.

As we write this, there are fewer than 49 left.

To pick up yours, swing by…

http://phoenixcapitalmarketing.com/Prepare1.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The “smart money” isn’t buying this rally.

Corporate insiders know more about their companies than anyone else. And they are not buying this rally… at all. In fact, they’re using it to dump shares.

A total of 3,500 insiders at Russell 3000 companies have unloaded their own stock in the last three weeks, while 467 purchased shares, according to data from The Washington Service, a Bethesda, Maryland-based provider of insider trading data and news.

Source: WSJ

For those of you who track these things, the 3,500 insiders dumping shares represents more than 200% of the usual monthly average for insider sellers.

Meanwhile, the dumb money investors have piled into stocks. According to American Association of Individual Investors (AAII) individual investors bought stocks in a big way in November, bringing their cash holdings to a 16 month low.

So… the smartest money in the world when it comes to corporate operations (insiders) are dumping shares while individual investors who play stocks for fun are piling in…

This is a recipe for a sharp collapse.

Based on this situation… we’ve decided to extend our offer to explore Private Wealth Advisory for 30 days for just $0.98.

We don’t want investors to miss out on the potential to turn this market volatility into profits. Private Wealth Advisory have a success rate of 89% with our trades (meaning we make money on nearly 9 out of 10 positions).

But we cannot maintain this track record with thousands of traders following these picks.

Tonight at midnight we’re closing the doors on our offer to explore Private Wealth Advisory for 30 days for just $0.98.

But this is IT. No more extensions.

If you want to lock in one of the remaining slots, you better move quickly.

To lock in one of the last $0.98 30 day trials to Private Wealth Advisory…

Click Here Now!

Graham Summers

Chief Market Strategist

Phoenix Capital Research