Month: March 2020

31
Mar
2020

If Stocks Were Going to Roll Over… This is Where They’d Do It

Stocks are roughly flat this morning.

The issue for everyone is whether THE bottom is in, or if it’s simply just “a” bottom and stocks are due to retest the lows.

No one knows the answer to this. If your advisor or some pundit claims they do, they are lying.

The reality is that regardless of whether or not the Covid-19 pandemic ends sooner rather than later, the economic fallout from this mess is very real.

Personally, I am watching the credit markets very closely to see how this plays out. Credit leads stocks. And credit is where we’ll see signs of duress long before stocks pick up on it.

———————————————————–

Get a LIFETIME Subscription to All Of Our Products For Just $2,500 

An annual subscription to all of our current newsletters costs $1,500. 

But today, you can get a LIFETIME subscription to ALL of them, along with every new product we ever launch, for just $2,500.

Today is the last day this offer is available.

To lock in one of the remaining slots…

CLICK HERE NOW!!! 

———————————————————–

High yield credit spreads have rallied strongly but are struggling to close the gap from the limit down open on Monday March 16th (red box). Personally, I want to see this gap closed before moving aggressively back into the markets.

The same is true for investment grade credit spreads. Here, spreads have actually entered the gap, but have yet to break above it.

Considering the Fed has broadcasted it would be buying investment grade credit with “unlimited QE” I am surprised credit is struggling here.

If both credit spreads break above their gaps, I’d issue an “all clear” on stocks. But right now, they’re struggling to move higher.

This, combined with the fact that breadth is struggling to break above resistance (red line in the chart below), has me concerned we are going to see another significant drop.

These are the three charts I personally am watching to determine what the next move is for the markets.

In the meantime, if you’re worried about weathering a potential market crash, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in stock collapse?
31
Mar
2020

Is the Bottom In? Use These Three Charts to Find Out!

Stocks are roughly flat this morning.

The issue for everyone is whether THE bottom is in, or if it’s simply just “a” bottom and stocks are due to retest the lows.

No one knows the answer to this. If your advisor or some pundit claims they do, they are lying.

The reality is that regardless of whether or not the Covid-19 pandemic ends sooner rather than later, the economic fallout from this mess is very real.

Personally, I am watching the credit markets very closely to see how this plays out. Credit leads stocks. And credit is where we’ll see signs of duress long before stocks pick up on it.

———————————————————–

Get a LIFETIME Subscription to All Of Our Products For Just $2,500 

An annual subscription to all of our current newsletters costs $1,500. 

But today, you can get a LIFETIME subscription to ALL of them, along with every new product we ever launch, for just $2,500.

Today is the last day this offer is available.

To lock in one of the remaining slots…

CLICK HERE NOW!!! 

———————————————————–

High yield credit spreads have rallied strongly but are struggling to close the gap from the limit down open on Monday March 16th (red box). Personally, I want to see this gap closed before moving aggressively back into the markets.

The same is true for investment grade credit spreads. Here, spreads have actually entered the gap, but have yet to break above it.

Considering the Fed has broadcasted it would be buying investment grade credit with “unlimited QE” I am surprised credit is struggling here.

If both credit spreads break above their gaps, I’d issue an “all clear” on stocks. But right now, they’re struggling to move higher.

This, combined with the fact that breadth is struggling to break above resistance (red line in the chart below), has me concerned we are going to see another significant drop.

These are the three charts I personally am watching to determine what the next move is for the markets.

In the meantime, if you’re worried about weathering a potential market crash, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in stock collapse?
31
Mar
2020

These Are the Three Charts I’m Watching To Determine if the Bottom Is In

Stocks are roughly flat this morning.

The issue for everyone is whether THE bottom is in, or if it’s simply just “a” bottom and stocks are due to retest the lows.

No one knows the answer to this. If your advisor or some pundit claims they do, they are lying.

The reality is that regardless of whether or not the Covid-19 pandemic ends sooner rather than later, the economic fallout from this mess is very real.

Personally, I am watching the credit markets very closely to see how this plays out. Credit leads stocks. And credit is where we’ll see signs of duress long before stocks pick up on it.

———————————————————–

Get a LIFETIME Subscription to All Of Our Products For Just $2,500 

An annual subscription to all of our current newsletters costs $1,500. 

But today, you can get a LIFETIME subscription to ALL of them, along with every new product we ever launch, for just $2,500.

Today is the last day this offer is available.

To lock in one of the remaining slots…

CLICK HERE NOW!!! 

———————————————————–

High yield credit spreads have rallied strongly but are struggling to close the gap from the limit down open on Monday March 16th (red box). Personally, I want to see this gap closed before moving aggressively back into the markets.

The same is true for investment grade credit spreads. Here, spreads have actually entered the gap, but have yet to break above it.

Considering the Fed has broadcasted it would be buying investment grade credit with “unlimited QE” I am surprised credit is struggling here.

If both credit spreads break above their gaps, I’d issue an “all clear” on stocks. But right now, they’re struggling to move higher.

This, combined with the fact that breadth is struggling to break above resistance (red line in the chart below), has me concerned we are going to see another significant drop.

These are the three charts I personally am watching to determine what the next move is for the markets.

In the meantime, if you’re worried about weathering a potential market crash, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in stock collapse?
30
Mar
2020

Panic is Subsiding… But What Will Be the Secondary Effects?

Stocks are up somewhat this morning.

This marks the second Monday stocks will open in the green (last Monday was a green open as well) following two horrifically bad weekend sessions that saw stocks open limit down or close to limit down (March 2nd and 9th).

In the simplest of terms, the panic in the markets appears to be abating. It is clear stocks have broken the downtrend from the panic (blue lines). What is not clear is whether this rally will continue or not.

Stocks stalled out under resistance (red line) last week. A break above that line would open the door to a run to 3,000.

At the end of the day, stocks are actually a minor player in this mess. The BIG story is what happens with the bond markets.

Going into last week, it was clear the financial system was facing a debt crisis. Across the board everything from corporate bonds to municipal bonds were breaking down in a catastrophic fashion.

The Fed managed to stop this massacre by announcing it would backstop everything.  

The question now is whether that will be enough. Bonds have staged a major bounce in the last five days, but what happens if they turn down again?

Will the Fed’s announcement that it intends to buy corporate bonds be enough to stop the $10 trillion corporate bond bubble from imploding? 

What about the $16-$19 trillion commercial real estate market? Will the shutdown, which has closed so many restaurants and retailers, result in a crisis in this market as businesses begin skipping monthly payments or breaking contracts outright?

And what about the $23 trillion U.S. treasury bubble? Will the $2 trillion in stimulus, which both the President and the Democrats have suggested will be the first of several, be what finally pushes the U.S.’s debt loads into a crisis?

We don’t have answers to any of these questions yet.

The fact stocks have rallied 17% makes investors feel better about things, but it doesn’t do anything to address the larger systemic issues facing the markets today.

Indeed, the only thing of which we CAN be certain is that the Powers That Be are going to address ALL of these issues by printing money.

And that is going to induce higher inflation.

Note that Gold has broken out against the $USD, the Japanese Yen, and the Euro.

This is telling us that the first round of the crisis, the deflationary collapse, will be ending. But the second round, the INFLATIONARY tidal wave, is only just beginning.

On that note, we just published a Special Investment Report concerning 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. And it explains in very simply terms how to make inflation PAY YOU.

We are making just 99 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

Posted by Phoenix Capital Research in Inflation
30
Mar
2020

Gold Has Broken Out Against Every Major Currency

Stocks are up somewhat this morning.

This marks the second Monday stocks will open in the green (last Monday was a green open as well) following two horrifically bad weekend sessions that saw stocks open limit down or close to limit down (March 2nd and 9th).

In the simplest of terms, the panic in the markets appears to be abating. It is clear stocks have broken the downtrend from the panic (blue lines). What is not clear is whether this rally will continue or not.

Stocks stalled out under resistance (red line) last week. A break above that line would open the door to a run to 3,000.

At the end of the day, stocks are actually a minor player in this mess. The BIG story is what happens with the bond markets.

———————————————————–

Get a LIFETIME Subscription to All Of Our Products For Just $2,500 

An annual subscription to all of our current newsletters costs $1,500. 

But today, you can get a LIFETIME subscription to ALL of them, along with every new product we ever launch, for just $2,500.

Today is the last day this offer is available.

To lock in one of the remaining slots…

CLICK HERE NOW!!! 

———————————————————–

Going into last week, it was clear the financial system was facing a debt crisis. Across the board everything from corporate bonds to municipal bonds were breaking down in a catastrophic fashion.

The Fed managed to stop this massacre by announcing it would backstop everything.  

The question now is whether that will be enough. Bonds have staged a major bounce in the last five days, but what happens if they turn down again?

Will the Fed’s announcement that it intends to buy corporate bonds be enough to stop the $10 trillion corporate bond bubble from imploding? 

What about the $16-$19 trillion commercial real estate market? Will the shutdown, which has closed so many restaurants and retailers, result in a crisis in this market as businesses begin skipping monthly payments or breaking contracts outright?

And what about the $23 trillion U.S. treasury bubble? Will the $2 trillion in stimulus, which both the President and the Democrats have suggested will be the first of several, be what finally pushes the U.S.’s debt loads into a crisis?

We don’t have answers to any of these questions yet.

The fact stocks have rallied 17% makes investors feel better about things, but it doesn’t do anything to address the larger systemic issues facing the markets today.

Indeed, the only thing of which we CAN be certain is that the Powers That Be are going to address ALL of these issues by printing money.

And that is going to induce higher inflation.

Note that Gold has broken out against the $USD, the Japanese Yen, and the Euro.

This is telling us that the first round of the crisis, the deflationary collapse, will be ending. But the second round, the INFLATIONARY tidal wave, is only just beginning.

On that note, we just published a Special Investment Report concerning 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. And it explains in very simply terms how to make inflation PAY YOU.

We are making just 99 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

Posted by Phoenix Capital Research in Inflation
30
Mar
2020

What Will Be the Unintended Consequences of Printing Trillions of Dollars to Backstop the Entire System?

Stocks are up somewhat this morning.

This marks the second Monday stocks will open in the green (last Monday was a green open as well) following two horrifically bad weekend sessions that saw stocks open limit down or close to limit down (March 2nd and 9th).

In the simplest of terms, the panic in the markets appears to be abating. It is clear stocks have broken the downtrend from the panic (blue lines). What is not clear is whether this rally will continue or not.

Stocks stalled out under resistance (red line) last week. A break above that line would open the door to a run to 3,000.

At the end of the day, stocks are actually a minor player in this mess. The BIG story is what happens with the bond markets.

———————————————————–

Get a LIFETIME Subscription to All Of Our Products For Just $2,500 

An annual subscription to all of our current newsletters costs $1,500. 

But today, you can get a LIFETIME subscription to ALL of them, along with every new product we ever launch, for just $2,500.

Today is the last day this offer is available.

To lock in one of the remaining slots…

CLICK HERE NOW!!! 

———————————————————–

Going into last week, it was clear the financial system was facing a debt crisis. Across the board everything from corporate bonds to municipal bonds were breaking down in a catastrophic fashion.

The Fed managed to stop this massacre by announcing it would backstop everything.  

The question now is whether that will be enough. Bonds have staged a major bounce in the last five days, but what happens if they turn down again?

Will the Fed’s announcement that it intends to buy corporate bonds be enough to stop the $10 trillion corporate bond bubble from imploding? 

What about the $16-$19 trillion commercial real estate market? Will the shutdown, which has closed so many restaurants and retailers, result in a crisis in this market as businesses begin skipping monthly payments or breaking contracts outright?

And what about the $23 trillion U.S. treasury bubble? Will the $2 trillion in stimulus, which both the President and the Democrats have suggested will be the first of several, be what finally pushes the U.S.’s debt loads into a crisis?

We don’t have answers to any of these questions yet.

The fact stocks have rallied 17% makes investors feel better about things, but it doesn’t do anything to address the larger systemic issues facing the markets today.

Indeed, the only thing of which we CAN be certain is that the Powers That Be are going to address ALL of these issues by printing money.

And that is going to induce higher inflation.

Note that Gold has broken out against the $USD, the Japanese Yen, and the Euro.

This is telling us that the first round of the crisis, the deflationary collapse, will be ending. But the second round, the INFLATIONARY tidal wave, is only just beginning.

On that note, we just published a Special Investment Report concerning 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. And it explains in very simply terms how to make inflation PAY YOU.

We are making just 99 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

Posted by Phoenix Capital Research in It's a Bull Market
27
Mar
2020

Industrial Metals Are Rolling Over… is the Next Leg Down Here?

Stocks are red this morning.

If you’ve been following my work this week, you shouldn’t be surprised. History tells us that after sharp, severe crashes such as the one from late February to this week, there is usually a sharp two-day bounce.

As Bill King recently noted, throughout history there are two only two other instances in which stocks crashed this rapidly. Those are the crash of 1929 and the crash of 1987.

Both of them featured a swift double-digit decline of over 20% in a matter of days.

Both of them featured a MASSIVE two-day rally that saw stocks rise 20%.

Both of them then saw stocks roll over to either retest the lows (1987) or fall to new lows (1929).

The crash of 1929 saw stocks lose 34% in the span of a few days before staging a massive two-day rally of 18%. Stocks then dropped to new lows.

The crash of 1987 saw stocks fall 22% in a single day. They then staged a massive two-day rally of nearly 20% before falling to retest the lows.

———————————————————–

Get a LIFETIME Subscription to All Of Our Products For Just $2,500 

An annual subscription to all of our current newsletters costs $1,500.

But today, you can get a LIFETIME subscription to ALL of them, along with every new product we ever launch, for just $2,500.

Today is the last day this offer is available.

To lock in one of the remaining slots…

CLICK HERE NOW!!! 

———————————————————–

The point is that this week’s massive bounce doesn’t mean the lows are in. We are still in watch and wait mode for the markets. It would be perfectly normal to retest the lows or even break to new nominal lows.

Having said that, the credit markets, which lead stocks have shown signs of improvement,

High yield credit spreads haven broken above resistance (red line). What happens here is key. If they move to close the gap then the rally has legs. If they don’t we’re dropping

The same is true for investment grade credit spreads.

One thing that gives me concern is the fact that industrial metals companies, which are closely aligned with the real economy, all began to roll over yesterday.

I continue to believe stocks will retest the lows and possibly even break to new lows. 

In light of this, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

We made 100 copies available to the public.

As I write this there are 39 left.

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in It's a Bull Market
27
Mar
2020

The Panic is Ending… The Bounce Has Hit… What’s Next for Stocks ?

Stocks are red this morning.

If you’ve been following my work this week, you shouldn’t be surprised. History tells us that after sharp, severe crashes such as the one from late February to this week, there is usually a sharp two-day bounce.

As Bill King recently noted, throughout history there are two only two other instances in which stocks crashed this rapidly. Those are the crash of 1929 and the crash of 1987.

Both of them featured a swift double-digit decline of over 20% in a matter of days.

Both of them featured a MASSIVE two-day rally that saw stocks rise 20%.

Both of them then saw stocks roll over to either retest the lows (1987) or fall to new lows (1929).

The crash of 1929 saw stocks lose 34% in the span of a few days before staging a massive two-day rally of 18%. Stocks then dropped to new lows.

The crash of 1987 saw stocks fall 22% in a single day. They then staged a massive two-day rally of nearly 20% before falling to retest the lows.

———————————————————–

Get a LIFETIME Subscription to All Of Our Products For Just $2,500 

An annual subscription to all of our current newsletters costs $1,500.

But today, you can get a LIFETIME subscription to ALL of them, along with every new product we ever launch, for just $2,500.

Today is the last day this offer is available.

To lock in one of the remaining slots…

CLICK HERE NOW!!! 

———————————————————–

The point is that this week’s massive bounce doesn’t mean the lows are in. We are still in watch and wait mode for the markets. It would be perfectly normal to retest the lows or even break to new nominal lows.

Having said that, the credit markets, which lead stocks have shown signs of improvement,

High yield credit spreads haven broken above resistance (red line). What happens here is key. If they move to close the gap then the rally has legs. If they don’t we’re dropping

The same is true for investment grade credit spreads.

One thing that gives me concern is the fact that industrial metals companies, which are closely aligned with the real economy, all began to roll over yesterday.

I continue to believe stocks will retest the lows and possibly even break to new lows. 

In light of this, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

We made 100 copies available to the public.

As I write this there are 39 left.

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in It's a Bull Market
27
Mar
2020

Three Charts Every Investor Needs to See Today (Is the Bottom In?)

Stocks are red this morning.

If you’ve been following my work this week, you shouldn’t be surprised. History tells us that after sharp, severe crashes such as the one from late February to this week, there is usually a sharp two-day bounce.

As Bill King recently noted, throughout history there are two only two other instances in which stocks crashed this rapidly. Those are the crash of 1929 and the crash of 1987.

Both of them featured a swift double-digit decline of over 20% in a matter of days.

Both of them featured a MASSIVE two-day rally that saw stocks rise 20%.

Both of them then saw stocks roll over to either retest the lows (1987) or fall to new lows (1929).

The crash of 1929 saw stocks lose 34% in the span of a few days before staging a massive two-day rally of 18%. Stocks then dropped to new lows.

The crash of 1987 saw stocks fall 22% in a single day. They then staged a massive two-day rally of nearly 20% before falling to retest the lows.

———————————————————–

Get a LIFETIME Subscription to All Of Our Products For Just $2,500 

An annual subscription to all of our current newsletters costs $1,500. 

But today, you can get a LIFETIME subscription to ALL of them, along with every new product we ever launch, for just $2,500.

Today is the last day this offer is available.

To lock in one of the remaining slots…

CLICK HERE NOW!!! 

———————————————————–

The point is that this week’s massive bounce doesn’t mean the lows are in. We are still in watch and wait mode for the markets. It would be perfectly normal to retest the lows or even break to new nominal lows.

Having said that, the credit markets, which lead stocks have shown signs of improvement,

High yield credit spreads haven broken above resistance (red line). What happens here is key. If they move to close the gap then the rally has legs. If they don’t we’re dropping

The same is true for investment grade credit spreads.

One thing that gives me concern is the fact that industrial metals companies, which are closely aligned with the real economy, all began to roll over yesterday.

I continue to believe stocks will retest the lows and possibly even break to new lows. 

In light of this, we’ve reopened our Stock Market Crash Survival Guide to the general public.

Within its 21 pages we outline which investments will perform best during a market meltdown as well as how to take out “Crash insurance” on your portfolio (these instruments returned TRIPLE digit gains during 2008).

We made 100 copies available to the public.

As I write this there are 39 left.

To pick up your copy of this report, FREE, swing by:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in It's a Bull Market
26
Mar
2020

Did the Dead Cat Bounce Just End? What’s Next For Stocks?

As I noted in yesterday’s article, the market was bouncing strongly, but “we’re not out of the woods yet.”

Stocks slammed into overhead resistance yesterday and then retraced half of the day’s gains. This is not a good look if this rally is going to have legs. Stocks should have at least taken out the first line of real resistance with little difficulty.

The story was identical for high yield credit: a rollover that retraced half of the day’s gains. Here again we should have a stronger rally given how oversold the markets are.

———————————————————-  

Get a LIFETIME Subscription to All Of Our Products For Just $2,500 

An annual subscription to all of our current newsletters costs $1,500. 

But today, you can get a LIFETIME subscription to ALL of them, along with every new product we ever launch, for just $2,500.

Today is the last day this offer is available.

To lock in one of the remaining slots…

CLICK HERE NOW!!! 

———————————————————–

The one bright spot is investment grade credit, which managed to break through resistance. Given that this sector is being bought by the Fed for the first time ever… and that the Fed is buying it with “unlimited QE,” even this was not too outstanding. It is, however, one bright spot in what was overall a very lackluster day for risk yesterday.

I continue to believe stocks will retest the lows and possibly even break to new lows. Put another way, now is not the time to rush in and start buying.

My point with all of this is to NOT rush into stock right now. Do not worry about trying to catch a bottom or timing the exact low on the markets. You’re much better off waiting for clear signals that the market has DEFINITIVELY bottomed and THEN start buying.

My point with all of this is to NOT rush into stock right now. Do not worry about trying to catch a bottom or timing the exact low on the markets. You’re much better off waiting for clear signals that the market has DEFINITIVELY bottomed and THEN start buying.

Best Regards

Graham Summers

Chief Market Startegist

Phoenix Capital Research

Posted by Phoenix Capital Research in Central Bank Insanity
25
Mar
2020

Yesterday’s action was positive, but we’re not out of the woods by any stretch.

Stocks roared higher with the Dow closing up 11% for its largest single day gain since 1933. Across the board, the buying was extremely strong with 90% of trading volume being up by end of the day.

However, we are not out of the woods yet.

As Bill King recently noted, throughout history there are two only two other instances in which stocks crashed this rapidly. Those are the crash of 1929 and the crash of 1987.

Both of them featured a swift double-digit decline of over 20% in a matter of days.

Both of them featured a MASSIVE two-day rally that saw stocks rise 20%.

Both of them then saw stocks roll over to either retest the lows (1987) or fall to new lows (1929).

———————————————————-  

Get a LIFETIME Subscription to All Of Our Products For Just $2,500 

An annual subscription to all of our current newsletters costs $1,500.

But today, you can get a LIFETIME subscription to ALL of them, along with every new product we ever launch, for just $2,500.

Today is the last day this offer is available.

To lock in one of the remaining slots…

CLICK HERE NOW!!! 

———————————————————–

The crash of 1929 saw stocks lose 34% in the span of a few days before staging a massive two-day rally of 18%. Stocks then dropped to new lows.

The crash of 1987 saw stocks fall 22% in a single day. They then staged a massive two-day rally of nearly 20% before falling to retest the lows.

The point is that yesterday’s massive bounce doesn’t mean the lows are in. We are still in watch and wait mode for the markets.

On that note, high yield credit spreads have broken out of their downtrend. However, they have MAJOR resistance right overhead. That HAS to be broken for this rally to have any legs.

Investment grade credit spreads, which have lead credit during this bounce courtesy of the Fed announcing it will start buying investment grade corporate debt, have already slammed into resistance and rolled over.

My point with all of this is to NOT rush into stock right now. Do not worry about trying to catch a bottom or timing the exact low on the markets. You’re much better off waiting for clear signals that the market has DEFINITIVELY bottomed and THEN start buying.

Best Regards

Graham Summers

Chief Market Startegist

Phoenix Capital Research

Posted by Phoenix Capital Research in The Markets
25
Mar
2020

Two Charts That Will Tell Us When THE Bottom Is In

Yesterday’s action was positive, but we’re not out of the woods by any stretch.

Stocks roared higher with the Dow closing up 11% for its largest single day gain since 1933. Across the board, the buying was extremely strong with 90% of trading volume being up by end of the day.

However, we are not out of the woods yet.

As Bill King recently noted, throughout history there are two only two other instances in which stocks crashed this rapidly. Those are the crash of 1929 and the crash of 1987.

Both of them featured a swift double-digit decline of over 20% in a matter of days.

Both of them featured a MASSIVE two-day rally that saw stocks rise 20%.

Both of them then saw stocks roll over to either retest the lows (1987) or fall to new lows (1929).

———————————————————-  

Get a LIFETIME Subscription to All Of Our Products For Just $2,500 

An annual subscription to all of our current newsletters costs $1,500. 

But today, you can get a LIFETIME subscription to ALL of them, along with every new product we ever launch, for just $2,500.

Today is the last day this offer is available.

To lock in one of the remaining slots…

CLICK HERE NOW!!! 

———————————————————–

The crash of 1929 saw stocks lose 34% in the span of a few days before staging a massive two-day rally of 18%. Stocks then dropped to new lows.

The crash of 1987 saw stocks fall 22% in a single day. They then staged a massive two-day rally of nearly 20% before falling to retest the lows.

The point is that yesterday’s massive bounce doesn’t mean the lows are in. We are still in watch and wait mode for the markets.

On that note, high yield credit spreads have broken out of their downtrend. However, they have MAJOR resistance right overhead. That HAS to be broken for this rally to have any legs.

Investment grade credit spreads, which have lead credit during this bounce courtesy of the Fed announcing it will start buying investment grade corporate debt, have already slammed into resistance and rolled over.

My point with all of this is to NOT rush into stock right now. Do not worry about trying to catch a bottom or timing the exact low on the markets. You’re much better off waiting for clear signals that the market has DEFINITIVELY bottomed and THEN start buying.

Best Regards

Graham Summers

Chief Market Startegist

Phoenix Capital Research

Posted by Phoenix Capital Research in It's a Bull Market
24
Mar
2020

The Markets Suggest That The First Round of This Crisis is Ending… What’s Next?

Disclaimer: I am not a scientist nor am I a healthcare official. I am not downplaying the Covid-19 situation; I am simply looking at what the markets are saying about the Covid-19 pandemic.

A very strange thing has started happening in the markets.

While the news continues to tell us that there is a global pandemic and that soon millions of people will be dead… the stock markets have begun bottoming.

The stock market in Italy, which is supposed to be completely imploding from Covid-19, bottomed on March 16th. It failed to make a new low and has yet to roll over again.

Germany, which is now experiencing its own Covid-19 issues, looks like it bottomed on October 18th. It is still touch and go here, but we have yet to see new lows.

Here in the U.S., multiple economic bellwethers are showing us something similar. 

Caterpillar is the largest producer of large machinery in the world. If the world was entering a depression, and things were worsening, CAT’s stock actually bottomed on March 12th and is now putting in a higher low.

Similarly Freeport McMoran (FCX) is the largest copper producer in the U.S. Copper is a commodity that is closely linked to economic growth. And FCX’s share price looks like it bottomed last week on March 19th. Despite yesterday’s early morning bloodbath, FCX shares never broke to new lows.

Taken together, these charts are suggesting that the the market is in the process of bottoming. The one area of concern that has yet to give us the “all clear” is the credit markets.

High yield credit spreads DID put in a new low yesterday. They are now attempting to bounce. But unless credit bottoms, any rally in stocks will be short-lived.

Put another way, if that last chart begins to rally in a significant way, stocks could EXPLODE higher.

These charts are suggesting to us that the first round of the crisis, the deflationary collapse, will be ending sometime soon. But the second round, the INFLATIONARY storm triggered, by central banks printing trillions of dollars is just around the corner.

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

We are making just 100 copies available to the public.

As I write this there are 55 left.

To pick up yours, swing by:

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

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in The Markets
24
Mar
2020

Italy, Germany, Caterpillar and Freeport McMoran Are Bottoming… is the Bounce Finally Here?

Disclaimer: I am not a scientist nor am I a healthcare official. I am not downplaying the Covid-19 situation; I am simply looking at what the markets are saying about the Covid-19 pandemic.

A very strange thing has started happening in the markets.

While the news continues to tell us that there is a global pandemic and that soon millions of people will be dead… the stock markets have begun bottoming.

The stock market in Italy, which is supposed to be completely imploding from Covid-19, bottomed on March 16th. It failed to make a new low and has yet to roll over again.

Germany, which is now experiencing its own Covid-19 issues, looks like it bottomed on October 18th. It is still touch and go here, but we have yet to see new lows.

Here in the U.S., multiple economic bellwethers are showing us something similar. 

Caterpillar is the largest producer of large machinery in the world. If the world was entering a depression, and things were worsening, CAT’s stock actually bottomed on March 12th and is now putting in a higher low.

Similarly Freeport McMoran (FCX) is the largest copper producer in the U.S. Copper is a commodity that is closely linked to economic growth. And FCX’s share price looks like it bottomed last week on March 19th. Despite yesterday’s early morning bloodbath, FCX shares never broke to new lows.

Taken together, these charts are suggesting that the the market is in the process of bottoming. The one area of concern that has yet to give us the “all clear” is the credit markets.

High yield credit spreads DID put in a new low yesterday. They are now attempting to bounce. But unless credit bottoms, any rally in stocks will be short-lived.

Put another way, if that last chart begins to rally in a significant way, stocks could EXPLODE higher.

These charts are suggesting to us that the first round of the crisis, the deflationary collapse, will be ending sometime soon. But the second round, the INFLATIONARY storm triggered, by central banks printing trillions of dollars is just around the corner.

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

We are making just 100 copies available to the public.

As I write this there are 55 left.

To pick up yours, swing by:

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

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in The Markets
24
Mar
2020

Stocks Suggest a Bottom is Forming: Five Charts Every Investor Needs to See Today

Disclaimer: I am not a scientist nor am I a healthcare official. I am not downplaying the Covid-19 situation; I am simply looking at what the markets are saying about the Covid-19 pandemic.

A very strange thing has started happening in the markets.

While the news continues to tell us that there is a global pandemic and that soon millions of people will be dead… the stock markets have begun bottoming.

The stock market in Italy, which is supposed to be completely imploding from Covid-19, bottomed on March 16th. It failed to make a new low and has yet to roll over again.

Germany, which is now experiencing its own Covid-19 issues, looks like it bottomed on October 18th. It is still touch and go here, but we have yet to see new lows.

Here in the U.S., multiple economic bellwethers are showing us something similar. 

Caterpillar is the largest producer of large machinery in the world. If the world was entering a depression, and things were worsening, CAT’s stock actually bottomed on March 12th and is now putting in a higher low.

Similarly Freeport McMoran (FCX) is the largest copper producer in the U.S. Copper is a commodity that is closely linked to economic growth. And FCX’s share price looks like it bottomed last week on March 19th. Despite yesterday’s early morning bloodbath, FCX shares never broke to new lows.

Taken together, these charts are suggesting that the the market is in the process of bottoming. The one area of concern that has yet to give us the “all clear” is the credit markets.

High yield credit spreads DID put in a new low yesterday. They are now attempting to bounce. But unless credit bottoms, any rally in stocks will be short-lived.

Put another way, if that last chart begins to rally in a significant way, stocks could EXPLODE higher.

These charts are suggesting to us that the first round of the crisis, the deflationary collapse, will be ending sometime soon. But the second round, the INFLATIONARY storm triggered, by central banks printing trillions of dollars is just around the corner.

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

We are making just 100 copies available to the public.

As I write this there are 55 left.

To pick up yours, swing by:

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

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Posted by Phoenix Capital Research in The Markets
23
Mar
2020

The Two Charts to Watch For Signs of a Legitimate Bottom

As I warned two weeks ago, the Fed is going to start buying “everything”… AKA Weimar lite. 

The Fed has faced a choice… either let debt deflation clear the bad debts from the system, even if it means major corporations and banks failing, OR start buying “everything” in an effort to prop up the system (even if it induces raging inflation).

Well, the Fed officially crossed the Rubicon over the weekend. Going into the weekend the Fed had already…

1)    Cut interest rates from 1.25% to 0.15%.

2)    Launched a $1.5 trillion repo program.

3)    Launched a $700 billion QE program.

4)    Begun buying commercial paper debt instruments.

5)    Opened the discount window to the eight largest banks in the US.

6)    Expanded the repo program to $1 trillion per day.

7)    Opened dollar swaps with international central banks.

8)    Opened credit windows to the money market funds market.

9)    Begin buying municipal bonds.

Well, buckle up, because over the weekend, the Fed announced it would make its QE program “open ended” meaning it would buy Treasuries and Mortgage Backed Securities as needed.

Put another way, the Fed announced unlimited QE. And to top it off, the Fed ALSO added that it was expanding its QE mandate to buy corporate debt (for the first time in history).

Put another way, the Fed has announced it is going to effectively monetize “everything,”… Treasuries, Mortgage Backed Securities, Municipal debt, Corporate debt, etc. The only thing debt assets left are student debt, auto loans, and credit card debt.

In simple terms, the Everything Bubble burst… and now the Fed is dealing with it by buying EVERYTHING.

———————————————————-  

Get a LIFETIME Subscription to All Of Our Products For Just $2,500 

An annual subscription to all of our current newsletters costs $1,500.

But today, you can get a LIFETIME subscription to ALL of them, along with every new product we ever launch, for just $2,500.

Today is the last day this offer is available.

To lock in one of the remaining slots…

CLICK HERE NOW!!! 

———————————————————–

Whether or not this will work remains to be seen. But this is the NUCLEAR option. And if it doesn’t work, there is nothing left for the Fed to do. Remember, technically the Fed isn’t supposed to be able to buy municipal debt or corporate debt. So, it is moving FAR beyond its mandate with these actions.

The key chart to watch is the credit spread on Junk Bonds. While stocks tried to bounce time and again in the last few weeks, credit had continued to break down, warning that there was no bottom in sight.

If this chart breaks out to the upside, then we will finally get a bounce. We’re more than due for one…

The bigger issue… is if this works too well, and between the Fed pumping trillions into the financial system, and the federal government launching helicopter money, we begin to see roaring inflation.

Bond yields have begun rising, suggesting the bond market is beginning to discount inflation hitting the financial system. Moreover, the ratio between commodities and stocks has broken out of a multi-year falling wedge, which suggests commodities will be dramatically outperforming stocks going forward.

This too is signaling higher inflation is coming.

This is telling us that the first round of the crisis, the deflationary collapse, will be ending. But the second round, the INFLATIONARY tidal wave, is only just beginning.

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

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU.

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

Posted by Phoenix Capital Research in Central Bank Insanity
23
Mar
2020

As I warned two weeks ago, the Fed is going to start buying “everything”… AKA Weimar lite. 

The Fed has faced a choice… either let debt deflation clear the bad debts from the system, even if it means major corporations and banks failing, OR start buying “everything” in an effort to prop up the system (even if it induces raging inflation).

Well, the Fed officially crossed the Rubicon over the weekend. Going into the weekend the Fed had already…

1)    Cut interest rates from 1.25% to 0.15%.

2)    Launched a $1.5 trillion repo program.

3)    Launched a $700 billion QE program.

4)    Begun buying commercial paper debt instruments.

5)    Opened the discount window to the eight largest banks in the US.

6)    Expanded the repo program to $1 trillion per day.

7)    Opened dollar swaps with international central banks.

8)    Opened credit windows to the money market funds market.

9)    Begin buying municipal bonds.

Well, buckle up, because over the weekend, the Fed announced it would make its QE program “open ended” meaning it would buy Treasuries and Mortgage Backed Securities as needed.

Put another way, the Fed announced unlimited QE. And to top it off, the Fed ALSO added that it was expanding its QE mandate to buy corporate debt (for the first time in history).

Put another way, the Fed has announced it is going to effectively monetize “everything,”… Treasuries, Mortgage Backed Securities, Municipal debt, Corporate debt, etc. The only thing debt assets left are student debt, auto loans, and credit card debt.

In simple terms, the Everything Bubble burst… and now the Fed is dealing with it by buying EVERYTHING.

———————————————————-  

Get a LIFETIME Subscription to All Of Our Products For Just $2,500 

An annual subscription to all of our current newsletters costs $1,500.

But today, you can get a LIFETIME subscription to ALL of them, along with every new product we ever launch, for just $2,500.

Today is the last day this offer is available.

To lock in one of the remaining slots…

CLICK HERE NOW!!! 

———————————————————–

Whether or not this will work remains to be seen. But this is the NUCLEAR option. And if it doesn’t work, there is nothing left for the Fed to do. Remember, technically the Fed isn’t supposed to be able to buy municipal debt or corporate debt. So, it is moving FAR beyond its mandate with these actions.

The key chart to watch is the credit spread on Junk Bonds. While stocks tried to bounce time and again in the last few weeks, credit had continued to break down, warning that there was no bottom in sight.

If this chart breaks out to the upside, then we will finally get a bounce. We’re more than due for one…

The bigger issue… is if this works too well, and between the Fed pumping trillions into the financial system, and the federal government launching helicopter money, we begin to see roaring inflation.

Bond yields have begun rising, suggesting the bond market is beginning to discount inflation hitting the financial system. Moreover, the ratio between commodities and stocks has broken out of a multi-year falling wedge, which suggests commodities will be dramatically outperforming stocks going forward.

This too is signaling higher inflation is coming.

This is telling us that the first round of the crisis, the deflationary collapse, will be ending. But the second round, the INFLATIONARY tidal wave, is only just beginning.

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

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU.

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

Posted by Phoenix Capital Research in Central Bank Insanity
23
Mar
2020

As I warned two weeks ago, the Fed is going to start buying “everything”… AKA Weimar lite. 

The Fed has faced a choice… either let debt deflation clear the bad debts from the system, even if it means major corporations and banks failing, OR start buying “everything” in an effort to prop up the system (even if it induces raging inflation).

Well, the Fed officially crossed the Rubicon over the weekend. Going into the weekend the Fed had already…

1)    Cut interest rates from 1.25% to 0.15%.

2)    Launched a $1.5 trillion repo program.

3)    Launched a $700 billion QE program.

4)    Begun buying commercial paper debt instruments.

5)    Opened the discount window to the eight largest banks in the US.

6)    Expanded the repo program to $1 trillion per day.

7)    Opened dollar swaps with international central banks.

8)    Opened credit windows to the money market funds market.

9)    Begin buying municipal bonds.

Well, buckle up, because over the weekend, the Fed announced it would make its QE program “open ended” meaning it would buy Treasuries and Mortgage Backed Securities as needed.

Put another way, the Fed announced unlimited QE. And to top it off, the Fed ALSO added that it was expanding its QE mandate to buy corporate debt (for the first time in history).

Put another way, the Fed has announced it is going to effectively monetize “everything,”… Treasuries, Mortgage Backed Securities, Municipal debt, Corporate debt, etc. The only thing debt assets left are student debt, auto loans, and credit card debt.

In simple terms, the Everything Bubble burst… and now the Fed is dealing with it by buying EVERYTHING.

———————————————————-  

Get a LIFETIME Subscription to All Of Our Products For Just $2,500 

An annual subscription to all of our current newsletters costs $1,500. 

But today, you can get a LIFETIME subscription to ALL of them, along with every new product we ever launch, for just $2,500.

Today is the last day this offer is available.

To lock in one of the remaining slots…

CLICK HERE NOW!!! 

———————————————————–

Whether or not this will work remains to be seen. But this is the NUCLEAR option. And if it doesn’t work, there is nothing left for the Fed to do. Remember, technically the Fed isn’t supposed to be able to buy municipal debt or corporate debt. So, it is moving FAR beyond its mandate with these actions.

The key chart to watch is the credit spread on Junk Bonds. While stocks tried to bounce time and again in the last few weeks, credit had continued to break down, warning that there was no bottom in sight.

If this chart breaks out to the upside, then we will finally get a bounce. We’re more than due for one…

The bigger issue… is if this works too well, and between the Fed pumping trillions into the financial system, and the federal government launching helicopter money, we begin to see roaring inflation.

Bond yields have begun rising, suggesting the bond market is beginning to discount inflation hitting the financial system. Moreover, the ratio between commodities and stocks has broken out of a multi-year falling wedge, which suggests commodities will be dramatically outperforming stocks going forward.

This too is signaling higher inflation is coming.

This is telling us that the first round of the crisis, the deflationary collapse, will be ending. But the second round, the INFLATIONARY tidal wave, is only just beginning.

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

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU.

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

Posted by Phoenix Capital Research in Central Bank Insanity
20
Mar
2020
The Everything Bubble Has Burst… Now Comes the Inflationary Storm

The coronavirus has burst the Everything Bubble.

Regardless of what happens with the economy or the virus, the damage has been done to the massive debt bubble. Across the board, credit and debt markets have ended their bull markets.

To fight this situation, the Fed has gone NUCLEAR with monetary policy. In the last three weeks, the Fed has:

1)    Cut interest rates from 1.25% to 0.15%.

2)    Launched a $1 5 trillion repo program.

3)    Launched a $700 billion QE program.

4)    Begun buying commercial paper debt instruments.

5)    Opened the discount window to the eight largest banks in the US.

6)    Opened dollar swaps with international central banks.

7)    Opened credit windows to the money market funds market.

If these policies sound familiar, it’s because the Fed basically just ran through its entire 2008 playbook. The big difference this time is that instead of taking a year to do this like it did in 2008, the Fed ran through all of these polices in less than a month.

Thus far, none of these policies have worked.

As I write this Friday morning, stocks have yet to stage a meaningful bounce. As a result, we are now seeing calls for the Fed to start buying corporate debt and municipal debt.

We are also now beginning to see talk of helicopter money being implemented as well, including mailing checks to people who cannot work due to the coronavirus. This combined with various stimulus programs will mean TRILLIONS being injected directly into the financial system.

This is all going to unleash inflation.

Bond yields have begun rising, suggesting the bond market is beginning to discount inflation hitting the financial system.

This is telling us that the first round of the crisis, the deflationary collapse, will be ending. But the second round, the INFLATIONARY tidal wave, is only just beginning.

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

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU.

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

Posted by Phoenix Capital Research in Central Bank Insanity, Inflation
20
Mar
2020

The Everything Bubble Has Burst… Now Comes the Inflationary Storm

The coronavirus has burst the Everything Bubble.

Regardless of what happens with the economy or the virus, the damage has been done to the massive debt bubble. Across the board, credit and debt markets have ended their bull markets.

To fight this situation, the Fed has gone NUCLEAR with monetary policy. In the last three weeks, the Fed has:

1)    Cut interest rates from 1.25% to 0.15%.

2)    Launched a $1 5 trillion repo program.

3)    Launched a $700 billion QE program.

4)    Begun buying commercial paper debt instruments.

5)    Opened the discount window to the eight largest banks in the US.

6)    Opened dollar swaps with international central banks.

7)    Opened credit windows to the money market funds market.

If these policies sound familiar, it’s because the Fed basically just ran through its entire 2008 playbook. The big difference this time is that instead of taking a year to do this like it did in 2008, the Fed ran through all of these polices in less than a month.

Thus far, none of these policies have worked.

As I write this Friday morning, stocks have yet to stage a meaningful bounce. As a result, we are now seeing calls for the Fed to start buying corporate debt and municipal debt.

We are also now beginning to see talk of helicopter money being implemented as well, including mailing checks to people who cannot work due to the coronavirus. This combined with various stimulus programs will mean TRILLIONS being injected directly into the financial system.

This is all going to unleash inflation.

Bond yields have begun rising, suggesting the bond market is beginning to discount inflation hitting the financial system.

This is telling us that the first round of the crisis, the deflationary collapse, will be ending. But the second round, the INFLATIONARY tidal wave, is only just beginning.

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

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU.

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

Posted by Phoenix Capital Research in It's a Bull Market