Month: August 2018

Warning… the following involves politics. We are neither pro- nor anti-the Trump administration, unfortunately we have to include political issues in our framework for understanding the markets.

For the last few months, it’s been an ongoing question… why is the Fed THIS hawkish at a time when the BoJ and ECB are engaged in NIRP as well as QE programs.

Don’t get me wrong, I believe the Fed should be hawkish… but eight planned rate hikes while engaging in a QT program that will reduce the Fed balance sheet by an amount equal to Sweden’s GDP every year is beyond excessive.

Moreover, the Fed’s policies are pushing the $USD sharply higher… which is causing a meltdown in the Emerging Markets. As the below chart shows, every push higher in the $USD has pushed Emerging Markets and China down.

Then, over the weekend, President Trump tweeted the following:

Tariffs are working far better than anyone ever anticipated. China market has dropped 27% in last 4months, and they are talking to us. Our market is stronger than ever, and will go up dramatically when these horrible Trade Deals are successfully renegotiated. America First…

Turn off any personal political bias for a moment… the President of the United States just outlined a specific drop (27%)in China’s stock market over a specific time frame (four months). And he did so within the context of his administration’s trade negotiations.

We know that the Trump administration views the stock market as a “report card.” And now we know that they apply that same metric to foreign markets.

Let’s review this here again…

1)   The Fed, which is run by Jerome Powell, who President Trump appointed in January, is currently engaged in the most hawkish monetary policy in Fed history.

2)   This hawkishness is pushing the $USD higher and hurting Emerging markets, particularly China’s stock market, badly.

3)   This is taking place at a time when the Trump administration is putting pressure on China to renegotiate trade issues.

4)   The President himself just publicly noted that China’s stock market is dropping hard while the US’s continues to fare well. He linked this to his administration’s trade negotiations with China.

This raises the question… has the Trump administration weaponized the Fed?

Put another way, did President Trump tell the Powell Fed to be as hawkish as possible as leverage against China during the trade disputes?

Take a look at the below chart with this question in your mind.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s coming down the pike when the Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Warning… the following involves politics. We are neither pro- nor anti-the Trump administration, unfortunately we have to include political issues in our framework for understanding the markets.

For the last few months, it’s been an ongoing question… why is the Fed THIS hawkish at a time when the BoJ and ECB are engaged in NIRP as well as QE programs.

Don’t get me wrong, I believe the Fed should be hawkish… but eight planned rate hikes while engaging in a QT program that will reduce the Fed balance sheet by an amount equal to Sweden’s GDP every year is beyond excessive.

Moreover, the Fed’s policies are pushing the $USD sharply higher… which is causing a meltdown in the Emerging Markets. As the below chart shows, every push higher in the $USD has pushed Emerging Markets and China down.

Then, over the weekend, President Trump tweeted the following:

Tariffs are working far better than anyone ever anticipated. China market has dropped 27% in last 4months, and they are talking to us. Our market is stronger than ever, and will go up dramatically when these horrible Trade Deals are successfully renegotiated. America First…

Turn off any personal political bias for a moment… the President of the United States just outlined a specific drop (27%)in China’s stock market over a specific time frame (four months). And he did so within the context of his administration’s trade negotiations.

We know that the Trump administration views the stock market as a “report card.” And now we know that they apply that same metric to foreign markets.

Let’s review this here again…

1)   The Fed, which is run by Jerome Powell, who President Trump appointed in January, is currently engaged in the most hawkish monetary policy in Fed history.

2)   This hawkishness is pushing the $USD higher and hurting Emerging markets, particularly China’s stock market, badly.

3)   This is taking place at a time when the Trump administration is putting pressure on China to renegotiate trade issues.

4)   The President himself just publicly noted that China’s stock market is dropping hard while the US’s continues to fare well. He linked this to his administration’s trade negotiations with China.

This raises the question… has the Trump administration weaponized the Fed?

Put another way, did President Trump tell the Powell Fed to be as hawkish as possible as leverage against China during the trade disputes?

Take a look at the below chart with this question in your mind.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s coming down the pike when the Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The market is sensing a major turn.

As I’ve noted before, the currency markets are the largest, most liquid markets on the planet. As such they sense changes first.

With that in mind, consider that the “inflation” currencies are showing a major turn in the $USD.

First and foremost, the Australian Dollar: $USD pair looks to have bottomed. We have a clear bullish falling wedge formation being broken to the upside. We should expect a retest of former support (red line) at the very least.

—————————————————————-

A Select Group of Traders Are CRUSHING the Market   By 25%… With Just 1 Trade Per Week

Our options trading system is on a HOT streak: 12 of our last 14 trades were double digit winners!

Don’t believe me?

You can see EVERY trade we’ve made this year HERE.

As a result we’re now up 29% this year alone… beating the S&P 500 by an astonishing 25%.

Best of all, this system couldn’t be easier: we only trade one trade, once per week… and we’re CRUSHING the market.

To join us today, take out a 60 day trial subscription.

If you’re not seeing SERIOUS returns within the first 60 days, we’ll issue a full refund, NO QUESTIONS ASKED.

To take out a trial subscription…

CLICK HERE NOW!!!

—————————————————————-

Next up is the Canada Dollar: $USD pair (another inflationary currency pair). Here again we have a bullish falling wedge pattern breaking out to the upside. Even better, we HELD support (red line) here.

And finally, we have the New Zealand Dollar: $USD pair, where we have yet another bullish falling wedge pattern breaking out to the upside with support (red line) being held.

One of this alone is significant. But all three taken together STRONGLY indicate that the $USD is prepared to roll over.

Again, we’re talking about the MOST sensitive markets on the planet signaling in three different ways that an inflationary move/ weak $USD is about to hit.

This tells us, the Fed is about to “walk back” its tightening schedule. And those who are prepared for this, will see MAJOR gains.

This is THE BIG MONEY trend today. Already the financial system is showing signs of it. And smart investors will use it to generate literal fortunes.

We just published a Special Investment Report concerning a FIVE secret investments you can use to make inflation pay you as it rips through the financial system in the months ahead

The report is titled Survive the Inflationary Storm

We are making just 100 copies available to the public.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The market is sensing a major turn.

As I’ve noted before, the currency markets are the largest, most liquid markets on the planet. As such they sense changes first.

With that in mind, consider that the “inflation” currencies are showing a major turn in the $USD.

First and foremost, the Australian Dollar: $USD pair looks to have bottomed. We have a clear bullish falling wedge formation being broken to the upside. We should expect a retest of former support (red line) at the very least.

—————————————————————-

A Select Group of Traders Are CRUSHING the Market   By 25%… With Just 1 Trade Per Week

Our options trading system is on a HOT streak: 12 of our last 14 trades were double digit winners!

Don’t believe me?

You can see EVERY trade we’ve made this year HERE.

As a result we’re now up 29% this year alone… beating the S&P 500 by an astonishing 25%.

Best of all, this system couldn’t be easier: we only trade one trade, once per week… and we’re CRUSHING the market.

To join us today, take out a 60 day trial subscription.

If you’re not seeing SERIOUS returns within the first 60 days, we’ll issue a full refund, NO QUESTIONS ASKED.

To take out a trial subscription…

CLICK HERE NOW!!!

—————————————————————-

Next up is the Canada Dollar: $USD pair (another inflationary currency pair). Here again we have a bullish falling wedge pattern breaking out to the upside. Even better, we HELD support (red line) here.

And finally, we have the New Zealand Dollar: $USD pair, where we have yet another bullish falling wedge pattern breaking out to the upside with support (red line) being held.

One of this alone is significant. But all three taken together STRONGLY indicate that the $USD is prepared to roll over.

Again, we’re talking about the MOST sensitive markets on the planet signaling in three different ways that an inflationary move/ weak $USD is about to hit.

This tells us, the Fed is about to “walk back” its tightening schedule. And those who are prepared for this, will see MAJOR gains.

This is THE BIG MONEY trend today. Already the financial system is showing signs of it. And smart investors will use it to generate literal fortunes.

We just published a Special Investment Report concerning a FIVE secret investments you can use to make inflation pay you as it rips through the financial system in the months ahead

The report is titled Survive the Inflationary Storm

We are making just 100 copies available to the public.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research