stock collapse?

Stocks Drop Hard, These Are the Levels to Watch Today

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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.

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Graham Summers

Chief Market Strategist

Phoenix Capital Research

Stocks rallied hard yesterday, but failed to break above resistance (red line in the chart below).

This suggests that the rally is tired and due for consolidation. We have had two similar phases since the markets bottomed on March 31^st-April 6^th, and April 20^th-April 27^th (red boxes in the chart below).

The big question for investors is if this is a buying opportunity or the start of a major drop.

Credit suggests it’s a buying opportunity. As long as high yield credit spreads remain above support (blue line in the chart below), the financial system remains in “risk on” mode.

Outside of stocks, it is clear the elites are planing on introducing extraordinary measures to seize wealth and assets from the middle class.

Consider the following…

The U.S. government intends to issue $3 TRILLION in debt between April and June.

Meanwhile, taxes are collapsing as the economy grinds to a halt… and millions of Americans lose their jobs (ADP reports companies laid off 20 MILLION people in April alone).

So where is the money going to come from to finance all of this insanity?

The IMF is calling for nations around the world to introduce a wealth tax of 10% on NET WEALTH as soon as possible?

If you think that’s bad, consider that the Fed plans to both seize and STEAL savings during the next crisis/ recession.

Indeed, we’ve uncovered a secret document outlining exactly how they will do this.

We detail this paper and outline three investment strategies you can implement right now to protect your capital from the Fed’s sinister plan in our Special Report The Great Global Wealth Grab.

We are making just 100 copies available for FREE the general public.

You can pick up a FREE copy at:

http://phoenixcapitalmarketing.com/GWG.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The market is now approaching “the line in the sand.”

That line is the 61.8% retracement of the March meltdown.

As Bill King has noted, a big problem with major market crashes is that they render most technical metrics useless. Put another way, whenever the market drops violently, things like relative strength, MACD, stop working as trading tools.

Case in point, stocks were already extremely oversold in late February 2020, but they dropped another 26% while RSI flatlined. Anyone who used RSI to try to pick a bottom in late February got destroyed.

For this reason, one of the few technical indicators that remain helpful after a crash are Fibonacci retracements percentages. These are based on the famous Fibonacci ratio (with the exception of the 0.5% which was simply added by traders for its predictive value).

From a predictive standpoint, historically, most major crashes see stocks retrace 61.8% of the initial decline before rolling over and crashing again. Put another way if stocks CANNOT break above the 61.8% retracement, they are doomed to crash to new lows. As such the 61.8% retracement is “the line in the sand.”

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As trader Xtrends has noted, during the Tech Crash the NASDAQ retraced 61.8% of the initial decline during a major bounce. It then stopped on a dime and rolled over to crash to new lows.

The same thing happened during the 2008 crash.

It’s now in the process of doing the same thing this month. Note that we are slightly above the 61.8% retracement today, but there are still two trading sessions left in the month.

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).

Today is the last day this report will be 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

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Wall Street begins reporting earnings for the first quarter this week.

Everyone expects earnings will be a disaster. After all, the economy first slowed, then ground to a complete halt last quarter. The issue now, as far as traders are concerned, is whether the results surprise to the downside, meaning, things are in fact worse than everyone already assumes.

The markets are preparing for their next major move.

The S&P 500 is struggling to break above the 50% retracement of its collapse. If it cannot break above here and continue to rally, then we could see another collapse.

Similarly, Treasuries, which are a safe haven, remain extremely close to their all-time highs. Given that things are supposed to be improving… shouldn’t bonds be breaking down more? Are these bonds warning us there’s more trouble ahead?

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).

Today is the last day this report will be 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 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.

———————————————————–

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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!!! 

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High yield credit spreads have rallied strongly but are struggling to close the gap from the limit down open on Monday March 16^th (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

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 16^th (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

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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 16^th (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