To be fair, the market was EXTREMELY overbought going into
this correct. So, we are MORE than due for a drop.
The most egregious stocks in terms of being overbought were
Tech stocks. This is where we’ll see the most severe drops. We bounce off
support on Friday, but it’s highly likely we’ll work our way down to the lower blue
line in the coming days.
Tesla (TSLA) is the ultimate example of just how ridiculous
things had gotten. It could almost HALVE and still maintain its bull market trendline
(purple line).
Is this going to be a crash? For some parts of the market it will feel like it. For others, the selling will be less dramatic.
However, this DOES present us with the first REAL opportunity to profit from a collapse since the March 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 are making 100 copies available to the public.
To pick up your copy of this report, FREE, swing by:
The single most important thing to do today is “watch and wait.”
Stocks got slammed yesterday. For all of the carnage, the S&P 500 held its bull market trendline. If the TOP is indeed in as many are claiming, we should take this line out shortly. Something to watch before panicking.
The NASDAQ, despite an absolute bloodbath, didn’t even get to its trendline. Again, for all the screaming that THE TOP is in and stocks are entering a bear market, we’ve not even taken out the clear and obvious bull channel of the last four months. Let’s take a deep breath and watch to see what happens before we panic and dump our holdings.
Outside of stocks, precious metals also held support.
Gold is forming a clear triangle consolidation pattern. The fact the precious metal didn’t collapse more yesterday is a very positive sign.
Silver, which is a much more volatile metal also held support. Here again we need to wait and watch. If the markets are indeed entering a “risk off” environment, silver should take out support with little difficulty.
These are four charts I’m watching today. Rather than trying to predict the future, I’m letting the market tell me what’s what. I suggest you do the same.
The single most important thing to do today is “watch and wait.”
Stocks got slammed yesterday. For all of the carnage, the S&P 500 held its bull market trendline. If the TOP is indeed in as many are claiming, we should take this line out shortly. Something to watch before panicking.
The NASDAQ, despite an absolute bloodbath, didn’t even get to its trendline. Again, for all the screaming that THE TOP is in and stocks are entering a bear market, we’ve not even taken out the clear and obvious bull channel of the last four months. Let’s take a deep breath and watch to see what happens before we panic and dump our holdings.
Outside of stocks, precious metals also held support.
Gold is forming a clear triangle consolidation pattern. The fact the precious metal didn’t collapse more yesterday is a very positive sign.
Silver, which is a much more volatile metal also held support. Here again we need to wait and watch. If the markets are indeed entering a “risk off” environment, silver should take out support with little difficulty.
These are four charts I’m watching today. Rather than trying to predict the future, I’m letting the market tell me what’s what. I suggest you do the same.
Stocks exploded higher yesterday with a massive intervention coming around 11:30AM.
As impressive as this intervention was, it was NOTHING compared to the one that hit FANG stocks. The FANG index soared over 3% when the intervention hit at 11:30AM.
This has been the overall theme since the market bottom in March. The big FANG stocks continue to rally higher and higher, driven by “someone” who wants to drive the markets higher no matter what the real economy is doing.
Take a look at the difference in performance between the FANGs and the S&P 500.
This begs the questions….
Why are these same companies outperforming so much?
And why is it that every time the market starts to breakdown, the FANGs explode higher?
Because these are the companies that central banks are buying.
Together these companies account for over 20% of the stock market. So if central banks can get them to rally,the rest of the market will follow.
As a result of this, front-running central bank actions, is the #1 trading strategy going forward.
At the end of the day, it all boils down to what I’ve been saying since 2017… that the Fed and other central banks are trapped in a vicious cycle through which it INTENTIONALLY creates bubbles to deal with each successive bust.
We had the Tech Bubble in the ’90s.
The Housing Bubble in the mid-00s.
And now the Everything Bubble in 2020.
On that note, we’re putting together an Executive Summary on how to play this move.
It will identify which investments will perform best during the Fed’s next bubble, including a unique play that could more than double the performance of the S&P 500.
This Executive Summary will be available exclusively to subscribers of our Gains Pains & Capital e-letter. To insure you receive a copy when it’s sent out, you can join here:
Stocks exploded higher yesterday with a massive intervention coming around 11:30AM.
As impressive as this intervention was, it was NOTHING compared to the one that hit FANG stocks. The FANG index soared over 3% when the intervention hit at 11:30AM.
This has been the overall theme since the market bottom in March. The big FANG stocks continue to rally higher and higher, driven by “someone” who wants to drive the markets higher no matter what the real economy is doing.
Take a look at the difference in performance between the FANGs and the S&P 500.
This begs the questions….
Why are these same companies outperforming so much?
And why is it that every time the market starts to breakdown, the FANGs explode higher?
Because these are the companies that central banks are buying.
Together these companies account for over 20% of the stock market. So if central banks can get them to rally,the rest of the market will follow.
As a result of this, front-running central bank actions, is the #1 trading strategy going forward.
At the end of the day, it all boils down to what I’ve been saying since 2017… that the Fed and other central banks are trapped in a vicious cycle through which it INTENTIONALLY creates bubbles to deal with each successive bust.
We had the Tech Bubble in the ’90s.
The Housing Bubble in the mid-00s.
And now the Everything Bubble in 2020.
On that note, we’re putting together an Executive Summary on how to play this move.
It will identify which investments will perform best during the Fed’s next bubble, including a unique play that could more than double the performance of the S&P 500.
This Executive Summary will be available exclusively to subscribers of our Gains Pains & Capital e-letter. To insure you receive a copy when it’s sent out, you can join here:
The precious metal has broken to new all-time highs, rising above $2,000 for the first time in history. What’s truly striking however, is that even after such a massive move, gold’s correction was relatively shallow. Indeed, it looks increasingly as if it has put in a base and is ready for is next leg higher.
If history is any guide, we’re just getting started here.
During the last Gold bull market in the 1970s, Gold rose 585% during its first leg up from 1970 to 1975. It then corrected roughly 50% before beginning its next leg up. However, it was the SECOND move higher than was the BIG one= a 740% increase in value.
This time around, we’re following a similar pattern. Gold first rallied about 630% from 2003-2011. It then corrected about 43% before bottoming in 2015 at $1,060. If it follows a similar second leg up this time around, it’s going to ~$8,000 per ounce before it peaks.
Literal fortunes will be made by this bull market. And if you don’t have exposure to it, you need to start doing so.
On that note, we just published a Special Investment Report concerning FIVE contrarian investments you can use to make precious metals pay you as inflation rips through the financial system in the months ahead.Paragraph
The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.
Today is the last day this report will be available to the general public.
The precious metal has broken to new all-time highs, rising above $2,000 for the first time in history. What’s truly striking however, is that even after such a massive move, gold’s correction was relatively shallow. Indeed, it looks increasingly as if it has put in a base and is ready for is next leg higher.
If history is any guide, we’re just getting started here.
During the last Gold bull market in the 1970s, Gold rose 585% during its first leg up from 1970 to 1975. It then corrected roughly 50% before beginning its next leg up. However, it was the SECOND move higher than was the BIG one= a 740% increase in value.
This time around, we’re following a similar pattern. Gold first rallied about 630% from 2003-2011. It then corrected about 43% before bottoming in 2015 at $1,060. If it follows a similar second leg up this time around, it’s going to ~$8,000 per ounce before it peaks.
Literal fortunes will be made by this bull market. And if you don’t have exposure to it, you need to start doing so.
On that note, we just published a Special Investment Report concerning FIVE contrarian investments you can use to make precious metals pay you as inflation rips through the financial system in the months ahead.Paragraph
The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU through care investing in the precious metals sector and precious metals mining.
Today is the last day this report will be available to the general public.
Both the S&P 500 and the NASDAQ hit new all-time highs yesterday.
And why wouldn’t they? After all, the market now realizes what I’ve been saying for months…
The Fed will soon be buying stocks.
After all, the Fed is already intervening in:
The Treasury markets (US sovereign debt)
The municipal bond markets (debt issued by states and cities)
The corporate bond markets by index (debt issued by corporations)
The corporate bond markets by individual corporate bonds (debt issued specifically by corporations)
The commercial paper markets (short-term corporate debt market)
And the asset-backed security markets (everything from student loans to certificates of deposit and more).
It won’t be the first central bank to do so…
The central bank of Switzerland, called the Swiss National Bank has been buying stocks for years. Yes. It literally prints money and buys stocks in the U.S. stock markets.
Then there’s Japan’s central bank, called the Bank of Japan. It also prints money and buys stocks outright. As of March 2019, it owned 80% of Japan’s ETFs.
Yes, 80%.
The BoJ is also a top-10 shareholder in over 50% of the companies that trade on the Japanese stock market.
If you think this can’t happen in the US, think again. The Fed told us in 2019 that it would be forced to engage in EXTREME monetary policies during the next downturn.
Fast forward to today, and the Fed is doing precisely this. Heck, it can’t even handle a 10% correction without introducing a new monetary scheme back in June… and that was AFTER one of the sharpest rallies in years!
Put another way…
We are now entering the greatest bubble of all time: a situation in which the Fed will spend trillions and trillions of dollars to corner all risk in an effort to reflate the financial system.
As I write this, the Fed has already spent over $3 trillion in the last three months. I expect this will soon be $5 trillion or even $6 trillion before the end of 2021.
At the end of the day, it all boils down to what I’ve been saying since 2017… that the Fed and other central banks are trapped in a vicious cycle through which it INTENTIONALLY creates bubbles to deal with each successive bust.
We had the Tech Bubble in the ’90s.
The Housing Bubble in the mid-00s.
And now the Everything Bubble in 2020.
On that note, we’re putting together an Executive Summary on how to play this move.
It will identify which investments will perform best during the Fed’s next bubble, including a unique play that could more than double the performance of the S&P 500.
This Executive Summary will be available exclusively to subscribers of our Gains Pains & Capital e-letter. To insure you receive a copy when it’s sent out, you can join here:
Both the S&P 500 and the NASDAQ hit new all-time highs yesterday.
And why wouldn’t they? After all, the market now realizes what I’ve been saying for months…
The Fed will soon be buying stocks.
After all, the Fed is already intervening in:
The Treasury markets (US sovereign debt)
The municipal bond markets (debt issued by states and cities)
The corporate bond markets by index (debt issued by corporations)
The corporate bond markets by individual corporate bonds (debt issued specifically by corporations)
The commercial paper markets (short-term corporate debt market)
And the asset-backed security markets (everything from student loans to certificates of deposit and more).
It won’t be the first central bank to do so…
The central bank of Switzerland, called the Swiss National Bank has been buying stocks for years. Yes. It literally prints money and buys stocks in the U.S. stock markets.
Then there’s Japan’s central bank, called the Bank of Japan. It also prints money and buys stocks outright. As of March 2019, it owned 80% of Japan’s ETFs.
Yes, 80%.
The BoJ is also a top-10 shareholder in over 50% of the companies that trade on the Japanese stock market.
If you think this can’t happen in the US, think again. The Fed told us in 2019 that it would be forced to engage in EXTREME monetary policies during the next downturn.
Fast forward to today, and the Fed is doing precisely this. Heck, it can’t even handle a 10% correction without introducing a new monetary scheme back in June… and that was AFTER one of the sharpest rallies in years!
Put another way…
We are now entering the greatest bubble of all time: a situation in which the Fed will spend trillions and trillions of dollars to corner all risk in an effort to reflate the financial system.
As I write this, the Fed has already spent over $3 trillion in the last three months. I expect this will soon be $5 trillion or even $6 trillion before the end of 2021.
At the end of the day, it all boils down to what I’ve been saying since 2017… that the Fed and other central banks are trapped in a vicious cycle through which it INTENTIONALLY creates bubbles to deal with each successive bust.
We had the Tech Bubble in the ’90s.
The Housing Bubble in the mid-00s.
And now the Everything Bubble in 2020.
On that note, we’re putting together an Executive Summary on how to play this move.
It will identify which investments will perform best during the Fed’s next bubble, including a unique play that could more than double the performance of the S&P 500.
This Executive Summary will be available exclusively to subscribers of our Gains Pains & Capital e-letter. To insure you receive a copy when it’s sent out, you can join here:
