Stocks are rallying because Ben Bernanke speaks at Congress on Wednesday. Stocks historically rally into Bernanke speeches.

The markets are at new all time highs. But it is now clear that Bernanke has absolutely no clue what he’s doing.

Just two months ago, Bernanke hinted at tapering QE. Note, he didn’t actually taper anything he just hinted at it.

This talk of tightening lasted all of two months. And remember, throughout this period of hinted the Fed was spending $85 BILLION per month via QE 3 and QE 4.

Imagine if you were in the car with a driver who was going 85 MPH down a road with a speed limit of 35 MPH (this isn’t a bad metaphor as there is absolutely no evidence that QE creates jobs or GDP growth so there is no reason for the Fed to be doing it in the first place).

The guy is obviously out of control. The dangers of driving this fast are myriad (crashing, running someone over, etc.) while the benefits (you might get where you want to go a little faster assuming you don’t crash) are minimal.

Now imagine that the driver turned to you and said, “I’m thinking about slowing down.” Seems like a great idea doesn’t it? But then a mere two minutes later he says “ we need to continue at 85 MPH for the foreseeable future.”

At this point any sane person would scream, “STOP.” The driver is clearly a madman and shouldn’t be let anywhere near the driver’s seat. Moreover, he’s totally lost all credibility and isn’t to be trusted.

That’s our Fed Chairman.

As I’ve noted before… QE, which doesn’t create jobs or GDP growth, does create inflation. The cost of everything is soaring in the US. Since 2002, the cost of just about every item you buy at the grocery store is up in a big way. Check out this list compiled at The Blaze:

• Eggs: 73%
• Coffee: 90%
• Peanut Butter: 40%
• Milk: 26%
• A Loaf Of White Bread: 39%
• Spaghetti And Macaroni: 44%
• Orange Juice: 46%
• Red Delicious Apples: 43%
• Beer: 25%
• Wine: 60%
• Electricity: 42%
• Margarine: 143%
• Tomatoes: 22%
• Turkey: 56%
• Ground Beef: 61%
• Chocolate Chip Cookies: 39%

The damage doesn’t stop there. The cost of everything from healthcare to college tuition is soaring. Heck, even the new Twinkies are smaller, but cost the same (a “hidden” price increase).

Make no mistake, inflation is entering the US financial system in a big way.

Inflation is good for stocks at the beginning. But then it eats into profits very quickly. At that time, things get really ugly for the markets.

Speaking of which… corporate profits are falling sharply, as is GDP, while stocks continue to rally hard.

Sounds a bit like 2007-2008 doesn’t it?

Stocks may hit new highs, but this rally has all the hallmarks of a blow off top, coming at the final stage of a bubble. Indeed, stocks have not been this overextended in over 20 years… that includes the 2007 peak. Soon after we reached that point… we then plunged into one of the worst market Crashes of all time.

By today’s metrics, this would mean the S&P 500 falling to 1,300 then eventually plummeting to new lows.

This is not doom and gloom. This is a fact. The Fed has created an even bigger bubble than the 2007 one.

The time to prepare for this is not once the collapse begins, but NOW, while stocks are still rallying. Stocks take their time moving up, but when they crash it happens VERY quickly.

With that in mind, I’ve already urged my Private Wealth Advisory clients to start prepping. We’ve opened six targeted trades to profit from the stock bubble bursting.

We’ve also taken care to prepare our finances and our loved ones for what’s coming, by following simple easy to follow steps concerning our savings, portfolios, and personal security via my Protect Your Family, Protect Your Savings & Protect Your Portfolio reports.

I’ve helped thousands of investors manage their risk and profit from market collapses. During the EU Crisis we locked in 72 straight winning trades and not one loser, including gains of 18%, 28% and more.

In fact, we’re currently on another winning streak having locked in nine winning trades in the last two months, including gains of 21% and 25%.

All for the small price of $299: the annual cost of a Private Wealth Advisory subscription.

To take action to prepare for what’s coming… and start taking steps to insure that when this bubble bursts you don’t lose your shirt.

Click Here Now!

Yours in Profits,

Graham Summers

The entire move last week was the result of Ben Bernanke waffling about when to taper QE (if ever).

The Fed hinted at tapering QE a mere two months ago. We now know that half of the Fed’s Board of Governors want QE tapered or even stopped entirely by the end of the year.

And yet, for some reason Bernanke cannot bring himself to even consider this, as he stated on Wednesday (after the market closed of course) that a “highly accommodative policy,” would be needed for some time.

Stocks hit a new high on the announcement.

However, the big story about Bernanke’s statement was the effect it had on the US Dollar.

Bernanke’s comments absolutely slammed the Dollar. Why is this important? Because the currency market is the largest most liquid market in the world trading volumes of over $4 trillion per day.

Wild price swings in a market of this size (that is often leveraged at 80 to 1 or even 100 to 1) mean massive amounts of wealth evaporating instantly. Historically, currencies are the first asset class to register when the system is in big trouble. These wild swings in the US Dollar are a major red flag that trouble is beginning to brew behind the scenes in the financial system.

Stocks may hit new highs, but this rally has all the hallmarks of a blow off top, coming at the final stage of a bubble. Indeed, stocks have not been this overextended in over 20 years… that includes the 2007 peak. Soon after we reached that point… we then plunged into one of the worst market Crashes of all time.

By today’s metrics, this would mean the S&P 500 falling to 1,300 then eventually plummeting to new lows.

This is not doom and gloom. This is a fact. The Fed has created an even bigger bubble than the 2007 one.

The time to prepare for this is not once the collapse begins, but NOW, while stocks are still rallying. Stocks take their time moving up, but when they crash it happens VERY quickly.

With that in mind, I’ve already urged my Private Wealth Advisory clients to start prepping. We’ve opened six targeted trades to profit from the stock bubble bursting.

We’ve also taken care to prepare our finances and our loved ones for what’s coming, by following simple easy to follow steps concerning our savings, portfolios, and personal security via my Protect Your Family, Protect Your Savings & Protect Your Portfolio reports.

I’ve helped thousands of investors manage their risk and profit from market collapses. During the EU Crisis we locked in 72 straight winning trades and not one loser, including gains of 18%, 28% and more.

In fact, we’re currently on another winning streak having locked in nine winning trades in the last two months, including gains of 21% and 25%.

All for the small price of $299: the annual cost of a Private Wealth Advisory subscription.

To take action to prepare for what’s coming… and start taking steps to insure that when this bubble bursts you don’t lose your shirt.

Click Here Now!

Yours in Profits,

Graham Summers

Yesterday’s move confirms what everyone suspected, that Ben Bernanke is more of a CNBC stock market cheerleader than a Fed Chairman or businessman. Is there really any other interpretation for his clear and obvious verbal intervention in the stock market? Can we really look at his actions and say that this is a man who legitimately knows what he is doing?

After all, Bernanke did not actually introduce any new policies. His Fed is torn about how to proceed with half of the Fed Board wanting to end QE by the end of 2013. And yet Bernanke felt the need to speak after the market closed about how he will keep the money printers going ad infinitum.

Who cares if the entire recovery is based on accounting gimmicks? Who cares if there is literally no evidence in history that QE generates economic growth? Who cares that Bernanke is literally betting the financial system  that his flawed theories are in fact correct? Stocks must go higher!

We did eek out a new high in the S&P 500 yesterday.

The move is very reminiscent of the 2007 top where we had a top, a brief collapse and then a final burst higher to a new high. Within a few months however, the markets had begun to descend into what would ultimately be the worst Crisis in 100 years.

Indeed, it is almost impossible to make the case that stocks are starting another major move up here. We have, in no certain order:

1)   A collapse in corporate earnings

2)   The collapse in US GDP

3)   The European banking crisis back

4)   The European sovereign crisis back (Portugal’s 10 year spiked above 8%)

5)   China’s hard landing (electrical consumption is up just 2.3%)

6)   A Fed that is literally beginning to mutiny with calls to end QE growing louder by the week

Against this backdrop, stocks are undoubtedly in a bubble.  Today, the S&P 500 is sitting a full 30% above its200-weekly moving average. We have NEVER been this overextended above this line at any point in the last 20 years.

Indeed, if you compare where the S&P 500 is relative to this line, we’re even MORE overbought that we were going into the 2007 peak at the top of the housing bubble.

We all know how bubbles end: BADLY.

This time will be no different. The last time a major bubble of these proportions burst, we fell to break through this line in a matter of weeks.

We then plunged into one of the worst market Crashes of all time.

By today’s metrics, this would mean the S&P 500 falling to 1,300 then eventually plummeting to new lows.

This is not doom and gloom. This is a fact. The Fed has created an even bigger bubble than the 2007 one.

The time to prepare for this is not once the collapse begins, but NOW, while stocks are still rallying. Stocks take their time moving up, but when they crash it happens VERY quickly.

With that in mind, I’ve already urged my Private WealthAdvisory clients to start prepping. We’ve opened six targeted trades to profit from the stock bubble bursting.

We’ve also taken care to prepare our finances and our loved ones for what’s coming, by following simple easy to follow steps concerning our savings, portfolios, and personal security via my Protect Your Family, Protect Your Savings & Protect Your Portfolio reports.

I’ve helped thousands of investors manage their risk and profit from market collapses. During the EU Crisis we locked in 72 straight winning trades and not one loser, including gains of 18%, 28% and more.

In fact, we’re currently on another winning streak having locked in nine winning trades in the last two months, including gains of 21% and 25%.

All for the small price of $299: the annual cost of a Private Wealth Advisory subscription.

To take action to prepare for what’s coming… and start taking steps to insure that when this bubble bursts you don’t lose your shirt.

Click Here Now!

Yours in Profits,

Graham Summers

Ben Bernanke has lost any last shred of credibility he might have had.

The Fed no longer believes in QE. And for good reason. We’ve seen QE 1,2,3,& 4 and yet we’ve not seen any meaningful uptick in employment or GDP growth. Indeed, since Bernanke took the reins at the Fed we’ve not seen a single year of 3+% GDP growth.

In this light, several Fed members are no longer fans of QE. Some of them want it tapered soon. In fact HALF of them want QE STOPPED completely by the end of 2013.

And yet, Bernanke decided that despite this dissent, he should make a speech stating that “highly accommodative policy” should continue along with the usual claims that inflation is under control.

These were the words of one man, not the Fed.

The markets exploded higher on Bernanke’s comments while the Dollar collapsed. And Bernanke now has a mutiny on his hands (one Fed Governor has already resigned in the last 24 hours).

Given that the Fed has been the primary driver of just about everything for the last five years, a fractured Fed is very bad news for the markets. Sure, we will see prices spike in the near term on Bernanke’s comments, but he has made it clear, point blank, that he has lost control of the market and really doesn’t have a clue what he’s doing.

This man knows only one thing: bubbles. Congratulations Bernanke, you’ve created an even bigger bubble than that of 2007. Your latest statements about providing liquidity have destroyed completely destroyed your credibility as Fed Chairman. And they’ve bought you at most a brief pause before this whole mess comes crashing down.

The entire environment feels just like 2007 again. The only difference is that this time everyone knows that we’re on shaky ground and has an eye for the exits. And in this mess, Bernanke announced nothing new, but simply stated that he remains a money printer.

If you’re looking for actionable investment strategies on playing the markets, take a look at my bi-weekly investment newsletter, Private Wealth Advisory.

Published every other Wednesday after the market closes, Private Wealth Advisory, shows individual investors how to beat the market with well-timed unique investments.

To whit Private Wealth Advisory is the only newsletter to have shown investors 72 straight winning trades and no losers during a 12-month period.

Indeed, in the last month alone we’ve locked in gains of 8%, 12%, 21% and even 28%… with an average holding period of 3-4 weeks.

To find out more about Private Wealth Advisory and how it can help you beat the market with your investments…

Click Here Now!

Best Regards

Graham Summers

 

 

 

 

China, which the investment world blindly continues to believe will power the global economy to growth, just posted its single worst export data since 2009.

All in all, Chinese exports fell 3.1% from a year earlier. Analysts had forecast growth of 3.7%. The reason? They continue to believe China will somehow pull a rabbit out of a hat and grow exports at a time when the global economy is sharply contracting.

Let’s look at the facts here.

In the last six months, China has pumped roughly $1.6 trillion in new credit (that’s 21% of GDP) into its economy. Despite this incredible monetary expansion, Chinese GDP growth is slowing.

Mind you, this slowing growth is occurring even after China massages the heck out of its GDP data. As I recently told my Private Wealth Advisory subscribers, when you look at electrical usage by the People’s Republic, real GDP growth is likely just 2.9%.

This is truly astounding: a country has expanded its credit by 21% of GDP in just six months and is barely able to generate positive GDP growth. Small wonder that the Chinese stock market has taken out its post-2009 trendline.

China is giving us a taste of what will be spreading throughout the global economy: a collapse in spite of massive monetary expansion. The entire “recovery” since 2009 has been based Central banks pushing money into the financial system… which did little more than allow corporations to borrow even more debt.

Indeed, globally the leverage in the financial system today is as bad if not worse than it was going into the 2008 Crash. Can you imagine what would happen if we suffered another collapse now, when Central Banks are already pumping their brains out trying to push market higher?

On that note, NOW is the time to prepare for another stock market bloodbath BEFORE this happens.

I’ve been warning subscribers of my Private Wealth Advisory newsletter that we were heading for a dark period in the stock market. We’ve since taken action to insure that when the market falls, we make money.

Indeed, in the last month alone we’ve seen gains of 8%, 12%, 21%, and 28%… all from basic stocks and bonds. And we’re now preparing with six carefully targeted investments that will pay out when the market falls.

To find out what they are, all you need to do is take out a trial subscription to Private Wealth Advisory. You’ll immediately be given access to the Private Wealth Advisory archives outlining our investment strategies.

You’ll also be given access to FIVE Special Reports (an $800 value) outlining the biggest risks to the financial system as well as the best means of protecting yourself and your loved ones from them.

To take out a trial subscription to Private Wealth Advisory and take action to make sure the coming months are a time of profit, not pain.

Click Here Now!

Best Regards,

Graham Summers

The economic recovery hit another record yesterday.

We’ve already had an incredible record setting streak for food stamp usage. Now we can add high unemployment to the mix. The US economy just posted its 54th straight month at which unemployment was north of 7.5%.

This has never happened before. And the worst part is that unemployment is in fact much worse than this indicates. Indeed, the Feds implement multiple gimmicks to maneuver the unemployment number down. As I’ve told Private Wealth Advisory subscribers, the most nefarious is simply not counting those who haven’t looked for a job recently as unemployed.

BOOM! Suddenly a lot of the people who are in fact unemployed don’t count and the unemployment rate drops. After all, one cannot help but wonder how one in five US households is on food stamps, while unemployment is down near 7.5%.

A much better measure of unemployment which I’ve shared with Private Wealth Advisory subscribers, is U6 unemployment, which measures those unemployed plus those who are unemployed and have looked for work in the last 12 months and those who are working part-time for economic reasons.

When you use this measurement, the unemployment rate is closer to 14.3%.

Against this backdrop of weak employment analysts continue to believe that the US economy will pick up in the second half of 2013. This is absolutely impossible. Weak employment means lower incomes. Lower incomes means lower consumer spending. Lower consumer spending means lower economic growth.

I warned Private Wealth Advisory subscribers in our most recent issue that the stock market was on borrowed time. The markets tend to stage summer rallies into the Fourth of July weekend, but with interest rates rising and the bond bubble beginning to burst, things are going to get much worse in a hurry.

This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.

If you are not preparing in advance for this, the time to get started is NOW.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING. In fact we just closed another bringing our new winning streak to NINE trades.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

The US economy continues to fall to pieces, though accounting gimmicks make our employment numbers look better than reality.

As I’ve alerted subscribers of our Private Wealth Advisory newsletter, most of the new “jobs” being created are part-time, not full time positions. Indeed, we’ve added over 500,000 part-time jobs to the US economy in 2013 so far. An incredible 360,000 of this came last month. And all in all we’ve now got a record 28+ million people working part-time in the US.

As for full-time jobs, well, we LOST 240,000 last month. And despite all the rhetoric coming out of Washington about a “recovery,” we’ve actually only added 130,000 in 2013 so far. To put this into perspective, we need to create at least 90,000 new full-time jobs PER MONTH to maintain employment levels based on population growth.

This is why the employment population ratio (take the number of people employed and divide it by the number of people who are of working age) hasn’t really moved in the four years since the Great Recession allegedly “ended.”

This is the #1 reason all the talk of “recovery” and “jobs growth” is totally bogus. If you are willing to fudge numbers and adjust measurements, then sure, things look much better. But the reality is that since 2009, there hasn’t been anywhere NEAR the job growth needed to claim we’re in a recovery.

With that in mind, the US stock market has rallied to retest its former trendline. This is a classic breakdown pattern. If we do not reclaim this line and go to new highs then the markets are set for a sharp decline, like to 1,550 if not more. And if you account for where stocks should be based on bonds, the S&P 500 should be down near 1,200.

I warned Private Wealth Advisory subscribers in our most recent issue that the stock market was on borrowed time. The markets tend to stage summer rallies into the Fourth of July weekend, but with interest rates rising and the bond bubble beginning to burst, things are going to get much worse in a hurry.

This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.

If you are not preparing in advance for this, the time to get started is NOW.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING. In fact we just closed another bringing our new winning streak to NINE trades.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

Well we got right to the trendline noted in earlier articles. We’re now beginning to roll over as we predicted.

The number of major problems hitting the system right now is truly staggering. Off the cuff I note:

1)   Egypt falling into governmental collapse and a possible coup.

2)   China entering a liquidity crisis.

3)   Japan’s economy slowing despite record QE.

4)   Multiple indicators flashing “recession” for the US.

5)   Corporate profits falling.

6)   EU back in crisis mode with both Portugal and Greece facing another round of collapse (with Spain and Italy waiting in the wings).

And those are just the major headline grabbing issues. Those banking on the market rallying even harder have got a lot of obstacles to overcome.

This is just the start. I warned Private Wealth Advisory subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.

This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.

If you are not preparing in advance for this, the time to get started is NOW.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING. In fact we just closed another bringing our new winning streak to NINE trades.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

 

 

 

Yesterday was another day of bad economic data with the ISM report showing the worst employment figure since September 2009.

The bulls believe that bad economic data means more QE. The problem with this is that they’re ignoring the fact that this current spat of bad data is coming out while QE 3 and QE 4 are occurring.

At any other time in the last four years, bad news could open the door to more QE as every QE plan had a fixed timeline in place. So there was always the possibility of more QE coming if economic data worsened once a particular program came to an end.

However, today the Fed is already running two QE programs that are correctively pumping $85+ billion into the system per month. So the fact that bad economic data is coming out now indicates QE is losing is effect.

This does NOT open the door to more QE now. If the Fed tapers QE in the future then yes, it might engage in more QE later down the road. But the idea that the Fed will increase QE when it’s already running $85 billion a month is misguided.

Copper, the commodity with a PhD in economics, gets this. Stocks do not.

Guess which asset class is in for a surprise in the coming months?

This is just the start. I warned Private Wealth Advisory subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.

This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.

If you are not preparing in advance for this, the time to get started is NOW.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING (one is up 12% this today alone). In fact we just closed another yesterday bringing our new winning streak to NINE trades.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

 

 

 

As noted last week, the markets will likely rally into the Fourth of July. Most “analysts” will view this as a sign that the initial drop down from two weeks ago was a fluke and it’s time to “buy the dip.”

However this move was to be expected based on technical formations alone. As I noted last week,

This move could take us as high as 1,625. However, if the market fails to reclaim its trendline we’re going down as far as 1,500 in short notice. And if we take out that level we’re in BIG TROUBLE.

Watch the below line. If we can’t get above it, we’re going DOWN fast.

There’s no shortage of reasons…

For starters, Japan’s economy is imploding, despite a record QE in place: domestic car sales plunged 15% from the year before.  So much for the view that the economy was improving courtesy of Japan announcing its NINTH QE effort equal to over 20% of its GDP.

In Europe, the powers that be have decided to make what happened in Cyprus (steal people’s money to fund a bailout) the template for all banking crises going forward. Anyone with an iota of common sense knows is going to lead to banking runs… which in a banking system with leverage at 26-to-1 is that last thing Europe needs.

And then there’s the US where GDP growth was revised SHARPLY lower due to a drop in consumer spending. Consumer spending accounts for 70% of GDP in the US. Guess how this will play out going forward?

This is just the start. I warned Private Wealth Advisory subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.

This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.

If you are not preparing in advance for this, the time to get started is NOW.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING (one is up 12% this today alone). In fact we just closed another yesterday bringing our new winning streak to NINE trades.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

 

 

 

Today should be the peak of end of the quarter performance gaming.

Stocks have rallied hard for three days. The financial media has seen this as indicating the worst is over. But the fact of the matter is that most of this is performance gaming aided by various Fed officials issue verbal interventions yesterday.

As I’ve noted to Private Wealth Advisory subscribers, there’s a historical pattern here: stocks tend to lead summer rallies into the Fourth of July. With that in mind, the technical pattern we noted earlier this morning remains in play with the S&P 500 rallying to retest support.

As noted on Wednesday, market collapses follow a particular pattern:

1)   The initial drop breaking support

2)   Bouncing to re-test support

3)   The larger drop

As noted on Wednesday, the S&P 500 has completed #1 and is now in #2. I expect the markets will hold up into next week. But at that point we’ll be primed for a serious collapse.

This is just the start. I warned Private Wealth Advisory subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.

This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.

If you are not preparing in advance for this, the time to get started is NOW.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING (one is up 12% this today alone). In fact we just closed another yesterday bringing our new winning streak to NINE trades.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

 

 

The biggest single most important item in the GDP report yesterday was the collapse in disposable income for Americans.

Most investors will focus on the drop in GDP growth for 1Q13 and view it as opening the door for the Fed to continue with QE 3 and QE 4 without any tapering in sight.

After all, the markets have believed that bad economic news is good news for the markets for four years based on the belief that a weak economy will mean more money printing from the Fed.

However, the real issue in the BEA’s report on GDP growth was the collapse in real per capita disposable income which fell at a annualized rate of 9.21%.

That is a truly staggering collapse in incomes. The last time we say anything even close to this was in the third quarter of 2008.  

That was right after Lehman failed and the entire economy and stock market were melting down. Buckle up, things are getting worse in the US at a truly alarming rate.

I’ve been warning subscribers of Private Wealth Advisory that the economy was going to turn sharply weaker this year. It’s already begun.

Indeed, while most investors will look at the GDP report as indicating more QE is coming, commodities certainly didn’t get that signal at all. The commodity index continues to plunge diverging wildly from the S&P 500.

One of these asset classes is completely mispricing the economy and the likelihood of more QE. Guess which one it is.

This is just the start. I warned Private Wealth Advisory subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.

This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.

If you are not preparing in advance for this, the time to get started is NOW.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING. In fact we just locked in four straight gains of 8%, 12%, 21% and 28% in the last month ALONE. In fact we just closed another yesterday bringing our new winning streak to NINE trades.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

The markets continue their dead cat bounce while the economic data worsens.

First quarter US GDP was revised down from an annual rate of 2.4% to 1.8%.  The drop was due to lower personal consumption expenditures than initially forecast.

This is the crux of the US’s current economic woes: consumer-spending accounts for roughly 70% of our GDP. And QE does nothing to help incomes, which drive consumption.

The US Federal Government has subsidized a weak economic recovery via food stamps and other social program, but the private sector is lagging with most of its hiring coming in the form of temporary or part-time jobs.

The Wall Street Journal ran this graphic yesterday. Anyone who is banking on consumers to continue spending as they have is out of their mind. I’ve been warning Private Wealth Advisory subscribers of this for weeks.

Regarding the stock market, it’s important to note that all market collapses follow a similar pattern of:

1)   The initial drop breaking support

2)   Bouncing to re-test support

3)   The larger drop

The S&P 500 has completed #1 and is now in #2:

This move could take us as high as 1,625. However, if the market fails to reclaim its trendline we’re going down as far as 1,500 in short notice. And if we take out that level we’re in BIG TROUBLE.

This is just the start. I warned Private Wealth Advisory subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.

This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.

If you are not preparing in advance for this, the time to get started is NOW.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING. In fact we just locked in four straight gains of 8%, 12%, 21% and 28% in the last month ALONE. In fact we just closed another yesterday bringing our new winning streak to NINE trades.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

The global Central Banks are in damage control mode.

The big story here is China, which is fast approaching its “Lehman” moment with interbank liquidity drying up rapidly and overnight rates are soaring.

As I’ve warned Private Wealth Advisory subscribers before, China’s shadow banking system equal to over $18 trillion (more than 200% of China’s GDP), so this could be the mother of all bubbles bursting.

Indeed, China’s stock market has now fallen 20% and is in a free fall.

The Central Bank of China spoke yesterday to assure the market that there was ample “liquidity” in the system. But the market isn’t buying it. Smart investors shouldn’t either.

In the US, two Fed Presidents (Fisher and Kocherlakota) engaged in verbal intervention yesterday, trying to convince investors that the market misinterpreted Ben Bernanke last week when he said the Fed could taper QE by late 2013 or the middle of 2014.

There isn’t much to interpret here. The Fed has failed miserably to generate economic growth of any significance. All it’s done is create a stock market bubble while draining high quality collateral from the system. Put another way, it’s created a situation in which leverage is even worse today than it was before 2008.

Bernanke knows this and is desperately trying to let the bubble down easily without it bursting. This is impossible. And as the bond and stock market action of the last week shows us, the very second the Fed backs off the system is at risk.

This is just the start. I warned Private Wealth Advisory subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.

This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.

If you are not preparing in advance for this, the time to get started is NOW.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING. In fact we just locked in four straight gains of 8%, 12%, 21% and 28% in the last month ALONE. In fact we just closed two more winners yesterday.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just started another eight trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

The markets are beginning what could in fact be an epic meltdown.

China is on the verge of a “Lehman” moment as its shadow banking system implodes. China had pumped roughly $1.6 trillion in new credit (that’s 21% of GDP) into its economy in the last two quarters… and China GDP growth is in fact slowing.

This is what a credit bubble bursting looks like: the pumping becomes more and more frantic with less and less returns. Check out the collapse in China’s stock market.

We are literally back into 2008 Crash territory here:

Brazil, another “coming economic superpower” is experiencing rampant riots (over two million people in fact) as inflation soars. Here again we are back into 2008 Crash territory:

And the US… well the breakout to new highs is looking more and more like a false breakout. These developments usually result in extreme violent swings in the other direction. In this case… DOWN.

This is just the start. I warned Private Wealth Advisory subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.

This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.

If you are not preparing in advance for this, the time to get started is NOW.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING. In fact we just locked in four straight gains of 8%, 12%, 21% and 28% in the last month ALONE. In fact we just closed two more winners this morning.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just started another four trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

The technical damage from yesterday’s bloodbath was severe.

Spain, which lead the “Europe is saved” party from the lows last year has just taken out its trendline. So much for the “crisis is over” proclamations. We’re heading back down in a big way.

The S&P 500 has also taken out its trendline. QE Forever is dead and buried. What will hold the market up now?

Copper is indicating that the entire post-2009 “recovery” is ending. We’re moving back into the 2008-collapse.

Real estate is totally imploding. Yesterday’s drop saw a very nasty return to “reality.”

This is just the start. I warned Private Wealth Advisory subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.

This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.

If you are not preparing in advance for this, the time to get started is NOW.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING. In fact we just locked in four straight gains of 8%, 12%, 21% and 28% in the last month ALONE.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just started another four trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

 

The QE Infinite parade officially ended yesterday when Bernanke hinted at tapering QE later this year or in mid-2014.

I first warned Private Wealth Advisory subscribers about this in mid-May writing,

If Bernanke is going to step down (as hinted by his decision to skip out on the Jackson Hole meeting) he’s not going to want to leave with the Fed going at QE 3 and QE 4 full throttle.

Instead his best bet would be to take his foot off the gas a little bit, giving his replacement a little room to maneuver if things get ugly.

Source: Private Wealth Advisory

This is precisely what Bernanke is trying to do. However, there is another far larger issue at work here.

The primary driver of stocks for the last four years has been the hope of more Fed stimulus. This hope has put a floor under ALL asset prices as market participants KNEW the Fed was involved in the markets. As a result EVERYTHING (stocks, bond commodities, even currencies) has been artificially propped.

By calling for the end to QE 3 and QE 4, the Fed has begun to remove these market props. Which means that the markets are now going to start adjusting to where assets prices REALLY SHOULD BE.

Take a look at the spike in the 10-year Treasury yield:

This is just the start. I warned Private Wealth Advisory subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.

This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.

If you are not preparing in advance for this, the time to get started is NOW.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING. In fact we just locked in four straight gains of 8%, 12%, 21% and 28% in the last month ALONE.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

We produced 72 straight winning trades (and not a SINGLE LOSER) during the first round of the EU Crisis. We’re now preparing for more carnage in the markets… having just started another four trade winning streak…

To join us…

Click Here Now!

Best Regards,

Graham Summers

 

 

The Fed will announce its moves today at 2PM.

There’s really no telling what will happen.  The markets have become truly schizophrenic. For instance, stocks continue to rally as though more QE is coming.

However, Gold, which has lead stocks into every major Fed program, continues to fall…

Moreover, Treasuries continue to fall, which indicates that less bond buying is coming…

In simple terms, the markets are all over the place. Some assets are forecasting tapering, some aren’t. It’s really a toss up.

The Fed is known to leak key information to insiders, so for certain “someone” will know before the rest of us.

If you’re looking for actionable investment strategies on playing the markets, take a look at my bi-weekly investment newsletter, Private Wealth Advisory.

Published every other Wednesday after the market closes, Private Wealth Advisory, shows individual investors how to beat the market with well-timed unique investments.

To whit Private Wealth Advisory is the only newsletter to have shown investors 72 straight winning trades and no losers during a 12-month period.

Indeed, in the last month alone we’ve locked in gains of 8%, 12%, 21% and even 28%… with an average holding period of 3-4 weeks.

To find out more about Private Wealth Advisory and how it can help you beat the market with your investments…

Click Here Now!

Best Regards

Graham Summers

 

 

The big question on every investors’ lips today and tomorrow is: “will the Fed announce or hint at tapering QE?”

Over the last two years, one of the biggest tools in the Fed’s arsenal has been verbal intervention: the act of saying something in order to push the market up. Time and again 2011-2012 saw various Fed Presidents appear at key points to push the market higher by promising more action or stimulus.

With that in mind, we have to keep our eyes on the bond markets. The Fed is most closely linked to the Primary Dealers. These are the banks that help the Fed and the Treasury with Treasury Auctions (when the US issues debt). These banks, more than any other financial entities on the planet, have access to the Fed’s insights.

Here’s the list of Primary Dealers:

1. Bank of America
2. Barclays Capital Inc.
3. BNP Paribas Securities Corp.
4. Cantor Fitzgerald & Co.
5. Citigroup Global Markets Inc.
6. Credit Suisse Securities (USA) LLC
7. Daiwa Securities America Inc.
8. Deutsche Bank Securities Inc.
9. Goldman, Sachs & Co.
10. HSBC Securities (USA) Inc.
11. J. P. Morgan Securities Inc.
12. Jefferies & Company Inc.
13. Mizuho Securities USA Inc.
14. Morgan Stanley & Co. Incorporated
15. Nomura Securities International Inc.
16. RBC Capital Markets
17. RBS Securities Inc.
18. UBS Securities LLC.

With that in mind, I suggest keeping a close eye on the bond markets. These will be the “tell” of what the Fed is likely to announce.

The 30 Year bond is trending lower in a clear downward channel. We’re now coming up on support at which point we see a rally. This would likely indicate that the Fed will not suggest tapering or will at least word things very carefully.

If you’re looking for actionable investment strategies on playing the markets, take a look at my bi-weekly investment newsletter, Private Wealth Advisory.

Published every other Wednesday after the market closes, Private Wealth Advisory, shows individual investors how to beat the market with well-timed unique investments.

To whit Private Wealth Advisory is the only newsletter to have shown investors 72 straight winning trades and no losers during a 12-month period.

Indeed, in the last month alone we’ve locked in gains of 8%, 12%, 21% and even 28%… with an average holding period of 3-4 weeks.

To find out more about Private Wealth Advisory and how it can help you beat the market with your investments…

Click Here Now!

Best Regards

Graham Summers

The markets are rallying today because Bernanke and the Fed meet on Wednesday and will announce their new policies (if any).

Someone might want to explain to them that the Nikkei just collapsed in spite of Central Bank policy. The bank of Japan announced it would buy $1.4 trillion worth of assets (roughly 25% of Japan’s GDP) in early April. The Nikkei has already wiped out almost all of the gains since that time.

Still, US bulls continue to hope that Bernanke will engage in even more QE, despite the fact the Fed has an $85 billion per month QE policy in place already, which comes to over $1 trillion in QE per year.

Given that the Fed’s balance sheet is already over $3 trillion and will be over $4 trillion within 12 months, one has to wonder just what Bernanke can do. His best bet is to retire in January and let someone else try and manage the mess he created.

So let’s see what happens on Wednesday. The markets will likely rally until then on hopes of more juice from Bernanke. But if he should disappoint at all (read: not announce something more or at least strongly hint at doing so) then buckle up.

I’ve been warning subscribers of my Private Wealth Advisory newsletter that we were heading for a dark period in the stock market. We’ve since taken action to insure that when the market falls, we make money.

Indeed, in the last month alone we’ve seen gains of 8%, 12%, 21%, and 28%… all from basic stocks and bonds. And we’re now preparing with six carefully targeted investments that will pay out when the market falls.

To find out what they are, all you need to do is take out a trial subscription to Private Wealth Advisory. You’ll immediately be given access to the Private Wealth Advisory archives outlining our investment strategies.

You’ll also be given access to FIVE Special Reports (an $800 value) outlining the biggest risks to the financial system as well as the best means of protecting yourself and your loved ones from them.

To take out a trial subscription to Private Wealth Advisory and take action to make sure the coming months are a time of profit, not pain.

Click Here Now!

Best Regards,

Graham Summers