stock collapse?

It is impossible to understand what is happening in the U.S. today from a COVID-19 policy response.

One day Dr Fauci says there will NOT be lockdowns, and the very next President Biden suggests there will.

One day CDC Director Rochelle Walensky states that the Biden Administration will likely issue a national mandate for the COVID-19 vaccine… and the next day she walks that back stating that “an experimental vaccine cannot be mandated by anyone.”

One day we are told by Biden administration officials that Delta variants are the biggest concern in terms of spread… and the next day the White House Deputy Press Secretary admits that she doesn’t even know if there’s a test for it.

You can draw your own conclusions from this situation. Some people will say that COVID-19 is a complicated situation that changes on a weekly basis, hence the confusion. Others will say this whole mess is about politics and has nothing to do with science. Others will say it’s a mix of the two.

For investors, given the market impact of another round of shutdowns, the wisest move is to ignore all the news and focus on price levels.

Put another way, don’t try to be psychic… let the market show you what’s going on.

I’ve illustrated the major lines of support for the S&P 500 with green lines in the chart below. They are currently 4380 and 4265. We also have minor support at 4,370 (purple line).

The key with bull markets is to let ride them for as long as possible. Put another way, until the market starts to “do something wrong,” by breaking down and taking out support lines you need to fight the urge to sell.

At some point the stock market will break down again as the Everything Bubble finally bursts and the financial system lurches into another crisis.

With that in mind, 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 just 100 copies available to the general public.

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

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Stocks are bouncing hard this morning because China stepped in to prop up its stock market.

That’s it. That’s the only reason.

Put another way, the stock market is in very serious trouble. 

The bulls have made multiple attempts to keep the S&P 500 above its 50-day moving average (DMA). Despite all of their efforts, the S&P 500 still closed below the 50-DMA yesterday.

The longer-term picture isn’t much better. The S&P 500 has effectively traded sideways now for three months. Stocks have managed to move a lot without actually going anywhere!

Mind you, this is happening at a time when the Fed is pushing some $120 BILLION into the financial system every month. So, the market has managed to go nowhere despite the Fed putting nearly a quarter of a trillion dollars into the financial system ($120 billion for January and February each).

Now you understand why I say the markets are in serious trouble. It stocks can’t catch a bid despite this much money printing, something is VERY wrong.

That something is inflation.

Stocks love inflation at first, but that love quickly turns to hate. During the last bout of hot inflation in the 1970s, stocks initially bubbled up before CRASHING nearly 50% in the span of two years, wiping out ALL of their initial gains and then some.

As I keep warning, inflation is going to ANNIHILATE investors’ portfolios.

Those who are properly prepared. however, will make literal fortunes.

On that note, 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).

We are making just 100 copies available to the public.

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

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best RegardsParagraph

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The bloodbath continues.

I warned for weeks that inflation was going to annihilate investors portfolios. And now it is.

The big question for most investors, is “when does it end?”

No one knows. But the market is offering us some clues.

Tesla (TSLA) was one of the hottest momentum stocks on the market going into this meltdown. It has sliced right through its 50-DMA and is now approaching its 200-DMA. Realistically, the 200-DMA is the first place we could see an actual bottom formed.

If the overall market were to follow TSLA, this would mean the S&P 500 dropping to roughly 3,500.

And the NASDAQ falling to 11,600 or so.

I know this is NOT what you wanted to hear. But the reality is that as awful as last week’s selling was, it didn’t induce any major flight to safety in bonds.

Historically, Treasuries are a safe haven, meaning that during times of trouble, capital runs to them for safety. However, last week this didn’t prove to be the case. The long-Treasury ETF (TLT) briefly spiked for a day or so, but then plunged back down to its lows.

Until you see TLT rallying hard, the odds of a market bottom remain extremely low. I wouldn’t get too excited about buying stocks until we see TLT trading near its 50-DMA at 148 or so.

Which means, buckle up, because the market is STILL in serious trouble.

Those who are properly prepared. however, will make literal fortunes.

On that note, 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).

We are making just 100 copies available to the public.

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

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best RegardsParagraph

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The stock market is warning us that a real bloodbath could be around the corner.

Let’s take a look at some charts. 

The market action of the last week has been extremely problematic. On the surface things look relatively benign. The S&P 500 fell to test support and its 50-day moving average (DMA) and bounced hard.

All of this is just fine and no cause for major concern. But again, this is problematic because “under the hood” things have gotten downright nasty.

Tesla (TSLA) has been one of the most important market leaders for stocks since the March lows. It sliced through its 50-DMA with little to no trouble. Support held, but this was a very negative development and opens the door to a test of the 200-DMA.

It’s a similar story for TradeDesk (TTD) another market leader: support held, but we sliced through the 50-DMA like a hot knife through butter. Again, the door is now open to the 200-DMA.

These are market leaders. If they go to their 200-DMAs, the broader market will likely end up doing the same.

That’s a pretty significant drop.

Again, the market action of the last week is quite problematic. While the S&P 500 looks contained, market leaders have seen tremendous damage to their charts. With this in mind, the potential for a nasty drop is higher than at any point in the last six months. 

This all ties back to what I’ve been arguing for weeks now: that the inflationary forces rippling through the financial system will eventually HURT rather than help stocks. 

The reason for this is that the ONLY thing that allows stocks to remain in a bull market is if the debt markets are calm and stable.

They are not. The yield on the all-important 10-Year Treasury yield has more than doubled since August and is now on the verge of breaking its 40+ year downtrend.

This is a HUGE deal. The last time that downtrend broke was in 2018 and it resulted in the stock market losing 20% in a matter of weeks.

As I kept warning for weeks, the coming inflation is going to ANNIHILATE most investors’ portfolios.

On that note, 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).

We are making just 100 copies available to the public.

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

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best RegardsParagraph

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Stocks are a bloodbath this morning.

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:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Stocks are a bloodbath this morning.

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:

http://phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Stocks dropped hard over the last 36 hours, but the buyers stepped in and aggressively bought the dip mid-session yesterday.

On the surface, the price action felt exciting. But the reality is that Tech Stocks had slammed into resistance at the top of the upwards channel they’ve been forming over the last four weeks (blue lines in the chart below). And try as they might, the bears failed to get the job done… price didn’t even drop to test major support (red line in the chart below).

Even massively overvalued companies like Shopify (SHOP) didn’t break their first line of support (top red line in the chart below). The uptrend remains clear. And this is on a stock that is up over 300% from the lows!

Moreover, the VIX failed to break out of its falling wedge formation (blue lines in the chart below) and fell back below resistance (green lines in the chart below).

If we are going to get a significant drop, bears need to step up today or tomorrow at the latest. Otherwise we’re going to new highs.

Today is the last day our Stock Market Crash Survival Guide will be available to the general public.

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

Stocks dropped hard over the last 36 hours, but the buyers stepped in and aggressively bought the dip mid-session yesterday.

On the surface, the price action felt exciting. But the reality is that Tech Stocks had slammed into resistance at the top of the upwards channel they’ve been forming over the last four weeks (blue lines in the chart below). And try as they might, the bears failed to get the job done… price didn’t even drop to test major support (red line in the chart below).

Even massively overvalued companies like Shopify (SHOP) didn’t break their first line of support (top red line in the chart below). The uptrend remains clear. And this is on a stock that is up over 300% from the lows!

Moreover, the VIX failed to break out of its falling wedge formation (blue lines in the chart below) and fell back below resistance (green lines in the chart below).

If we are going to get a significant drop, bears need to step up today or tomorrow at the latest. Otherwise we’re going to new highs.

Today is the last day our Stock Market Crash Survival Guide will be available to the general public.

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

The markets are down hard this morning.

There are a myriad of reasons. The most important one concerns price: stocks were extremely overbought and overextended. It was time for a correction.

The S&P 500 had just made an explosive move higher out of a rising wedge formation (blue lines in the chart below). This move had brought stocks to a line of major overhead resistance (red line in the chart below).

As I wrote earlier this week, it is highly unlikely stocks would break that red line on the first try. So, a correction is expected here. The question is where it stops.

I’ve drawn the support lines to watch (green lines in the chart below). As I write this, stocks have already sliced through the first and are testing the second.

In the big picture, the fact is that the economic shutdown triggered by the COVID-19 panic has done PROFOUND structural damage to the US economy.

Stocks have largely ignored this, experiencing a kind of “sugar high” by focusing on the record amounts of liquidity the Fed is providing.

However, stocks now appear to be waking up to the damage. We are entering a “risk off” mode in the markets.

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).

There are only 33 copies available to the public.

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

The markets are down hard this morning.

There are a myriad of reasons. The most important one concerns price: stocks were extremely overbought and overextended. It was time for a correction.

The S&P 500 had just made an explosive move higher out of a rising wedge formation (blue lines in the chart below). This move had brought stocks to a line of major overhead resistance (red line in the chart below).

As I wrote earlier this week, it is highly unlikely stocks would break that red line on the first try. So, a correction is expected here. The question is where it stops.

I’ve drawn the support lines to watch (green lines in the chart below). As I write this, stocks have already sliced through the first and are testing the second.

In the big picture, the fact is that the economic shutdown triggered by the COVID-19 panic has done PROFOUND structural damage to the US economy.

Stocks have largely ignored this, experiencing a kind of “sugar high” by focusing on the record amounts of liquidity the Fed is providing.

However, stocks now appear to be waking up to the damage. We are entering a “risk off” mode in the markets.

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).

There are only 33 copies available to the public.

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

Now is the time to be extra careful.

The US has erupted in riots/ civil unrest. The economic and cultural impacts of these events will be extreme. History has shown us that riots can have long-lasting, highly negative effects on local economies for years after the riots have ended.

Despite all of this horrific news, the markets are up somewhat this morning. And that is a bad sign. It reminds me of what the markets were doing in late February: while the COVID-19 pandemic/ economic shut down was just around the corner, the markets were actually rallying (red square in the chart below).

Then this happened.

Fast forward to today, and the week before a large portion of the economy literally went up in flames, the markets are rallying once again.

Let’s be clear… the US economy was already in a depression before the riots started. The riots have made things exponentially worse. The potential fallout from this is tremendous. And we could indeed see another crash hit.

Again, now is the time to be careful, with yourself, your loved ones and your investments.

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).

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

Ever since stocks bottomed on March 23^rd, the big question has been: 

Can the Fed negate the economic damage caused by the shutdown by throwing trillions of dollars at the financial system?

The market is beginning to show us.

I’ve mentioned time and again that the 61.8% retracement of the March meltdown is key to the market entering a new bull market. If it can break above this line, we’re in a new bull market. If it can’t then the entire rally was just a bear market bounce.

With that in mind, note that stocks have failed to break above this level twice now. Each time it has failed we’ve had a ~5% correction.

Does this mean the top is in? Why bother trying to predict that? Let’s focus on the what the markets are actually telling us instead of trying to be psychic!

The key lines of support for the S&P 500 are draw on the chart below.

As I write this Thursday morning, stocks are attempting to hold 2,800. If that line goes, the next real support level is 2,730.

This is also where high yield credit suggests stocks are heading.

Again, remember your levels, and ignore the financial media. They operate based on emotions and will lose you money. 

If you’re sick of narratives and want to focus on how to actually make money from the markets, join our FREE e-letter Gains Pains & Capital.

https://gainspainscapital.com/

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Ever since stocks bottomed on March 23^rd, the big question has been: 

Can the Fed negate the economic damage caused by the shutdown by throwing trillions of dollars at the financial system?

The market is beginning to show us.

I’ve mentioned time and again that the 61.8% retracement of the March meltdown is key to the market entering a new bull market. If it can break above this line, we’re in a new bull market. If it can’t then the entire rally was just a bear market bounce.

With that in mind, note that stocks have failed to break above this level twice now. Each time it has failed we’ve had a ~5% correction.

Does this mean the top is in? Why bother trying to predict that? Let’s focus on the what the markets are actually telling us instead of trying to be psychic!

The key lines of support for the S&P 500 are draw on the chart below.

As I write this Thursday morning, stocks are attempting to hold 2,800. If that line goes, the next real support level is 2,730.

This is also where high yield credit suggests stocks are heading.

Again, remember your levels, and ignore the financial media. They operate based on emotions and will lose you money. 

If you’re sick of narratives and want to focus on how to actually make money from the markets, join our FREE e-letter Gains Pains & Capital.

https://gainspainscapital.com/

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Ever since stocks bottomed on March 23^rd, the big question has been: 

Can the Fed negate the economic damage caused by the shutdown by throwing trillions of dollars at the financial system?

The market is beginning to show us.

I’ve mentioned time and again that the 61.8% retracement of the March meltdown is key to the market entering a new bull market. If it can break above this line, we’re in a new bull market. If it can’t then the entire rally was just a bear market bounce.

With that in mind, note that stocks have failed to break above this level twice now. Each time it has failed we’ve had a ~5% correction.

Does this mean the top is in? Why bother trying to predict that? Let’s focus on the what the markets are actually telling us instead of trying to be psychic!

The key lines of support for the S&P 500 are draw on the chart below.

As I write this Thursday morning, stocks are attempting to hold 2,800. If that line goes, the next real support level is 2,730.

This is also where high yield credit suggests stocks are heading.

Again, remember your levels, and ignore the financial media. They operate based on emotions and will lose you money. 

If you’re sick of narratives and want to focus on how to actually make money from the markets, join our FREE e-letter Gains Pains & Capital.

https://gainspainscapital.com/

Graham Summers

Chief Market Strategist

Phoenix Capital Research