GAINS, PAINS & CAPITAL

While the European banking collapse is grabbing the most attention, the US banks, particularly the Too Big To Fails are showing serious sounds of distress as well.

As you’ll recall from previous  articles I’ve written, the TBTFs are the institutions most favored by the Federal Reserve and Treasury during the bailouts/ interventions of the last four years. With the greatest derivative exposure, the greatest leverage, and the greatest toxic debts on or off their balance sheets, these firms provide a glimpse into the US financial system’s inner workings.

With that in mind, I want to draw your attention to the fact that all of these firms’ share prices have recently dropped below their critical support lines established during the relief rally following the market bottom in March 2009.

Here’s Bank of America:

As you can see, the market drop of August 2011 has brought shares of BAC below the support level established by the first major rally coming off of the March 2009 lows (when the Fed first announced QE 1).

The same is true of Citigroup:

As well as Wall Street darling Goldman Sachs:

Indeed, the only TBTFs that haven’t fallen below their post bottom support lines are JP Morgan and Wells Fargo. But by the look of things, they’re both going to break down soon:

And Wells Fargo:

These charts tell us in no uncertain terms that the US financial system is once again under extreme stress. They tell us that the market is going down, down, DOWN over the coming months.  We’re going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

If you have yet to prepare yourself for what’s coming, now is the time to do so. I can show you how. Indeed, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 13 winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing four investments that are poised to produce enormous profits in the next month.

We just opened these trades late last week. Already all four of them are up. And we’re going to be seeing MAJOR gains from them in the coming weeks.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

Stocks have now begun to confirm what the credit and bond markets have been telling us for weeks: that we are in a full-scale Crisis and going to new lows.

This process will not happen all at once. Remember, the S&P 500 didn’t hit its low for the first round of the Crisis until almost six months after Lehman Brothers went under.

So the markets are not going to suddenly go to 500 on the S&P 500 in one day. Instead it’s going to be similar action to what we’ve already seen: sharp violent sell-offs followed by snap-back rallies.

However, the fact that leverage levels prior to this round of the Crisis were even higher than those from the Tech Bubble… combined with the $600+ TRILLION in derivatives floating around in the financial system… should give you a sense of how serious the market declines can and will be as this whole thing breaks apart.

Indeed, this is the very problem with leverage: once things go against you, the selling pressure can create a death spiral as the drop in asset prices result in margin calls and redemptions which in turn beget more selling/ drops in asset prices and on and on.

However, this doesn’t mean that things will go straight down. Just as we’ve seen in the last month, there are going to see sharp snap-back rallies during the process of deleveraging and default.

Indeed, during the 2008 Collapse we saw rallies of 11%, 17%, and 20% respectively. Every time the market rolled over hard soon afterwards.

Indeed, the likelihood of a Crash is high as we recently got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.

It’s just triggered again… which means that last week’s sell off is JUST the beginning of what’s coming.

Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.

We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.

I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.

All in all these reports cover everything from how much food to store to which banks will go under,  when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.

Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.

To wit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 13 winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing four investments that are poised to produce enormous profits in the next month.

We just opened these trades late last week. Already all four of them are up. And we’re going to be seeing MAJOR gains from them in the coming weeks.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

Looks like the end of the quarter performance gaming is over. Indeed, the market got rejected in a big way at resistance (1,175 on the S&P 500). It then rolled over sharply and is now sitting on the trendline that has supported the last three minor bottoms.

We may get a brief bounce here due to beginning of the quarter (and month) buying, but unless that bounce is substantial we’re breaking the trendline soon and on our way to new lows.

Indeed, the big picture take shows us in a clear bearish flag formation targets 1,000 on the S&P 500:

I suggested to get defensive weeks ago. I urge you to be even more defensive now. Use rallies to lower exposure to stocks to the longside and to establish some shorts. I would also be heavily exposed to cash as the US Dollar rally I forecast last month looks ready to go into hyperdrive:

As you can see, the massive wedge formation has been broken in a BIG way. We’ve now taken out major resistance at 78 which sets the stage for a move to the mid 80s.

This move could easily be accompanied by greater weakness in Gold. I warned in August that Gold was succeptible to a sharp sell off. We’ve seen had that correction and the precious metal has fallen to test its 34-week exponential moving average.

This situation needs to be watched carefully. Gold has only broken below the 34-week exponential moving average in a big way ONCE in the last ten years: during the 2008 Crash. If Gold breaks below again, WATCH OUT!

Indeed, we recently got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.

It’s just triggered again… which means that last week’s sell off is JUST the beginning of what’s coming.

Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.

We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.

I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.

All in all these reports cover everything from how much food to store to which banks will go under,  when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.

Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.

To wit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 14 winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory, you’ll be given access to my Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing four investments that are poised to produce enormous profits in the next month.

We just opened these trades late last week. Already all four of them are up. And we’re going to be seeing MAJOR gains from them in the coming weeks.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

I wanted to take a moment to address the Fed’s new program of buying the long-end of the Treasury curve and its implications.

First off, because of the August collapse in stocks, long-term Treasuries have already rallied quite sharply. Indeed, the 30-year Treasury just hit a new ALL TIME high the afternoon after the Fed announced its new program.

That’s correct, the 30-Year Treasury is now trading even HIGHER than it was at the absolute nadir of the 2008/2009 Crash:

The fundamental picture here couldn’t be worse. The US is running a deficit equal to 10% of GDP. The US’s debt to GDP level is north of 100%. And the 30-Year Treasury is at an all-time high.

To be blunt: for the Fed to be buying Treasuries at this level is akin to buying Tech Stocks in 2000 or Housing stocks in 2007. Treasuries are in a bubble. And this bubble will end as all bubbles do: with a bang.

As noted in previous issues articles, interest rates are already at or near all time lows. So why would the Fed choose to buy longer-term Treasuries at all?

The answer lies in new US debt issuance. While everyone focuses on Europe’s mess, the US has once again raised its debt limit in September (the huge debt-ceiling debacle of August was just smoke and mirrors). With deficits and debt-to-GDP ratios on par with Greece, the US will be following Europe in the global debt implosion.

The Fed’s decision to buy $400 billion of longer-term US Treasuries in this environment is essentially the Fed announcing that it will be covering a significant portion of new debt issuance going forward as a means of putting off the inevitable US debt default. At most the Fed has bought 2-3 months of time for the US. I fully believe that before the end of this year, the bond market will shift its sights away from Europe to the US. At that time, the US debt bubble will burst resulting in systemic failure.

Indeed, last week we got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.

It’s just triggered again… which means that last week’s sell off is JUST the beginning of what’s coming.

Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.

We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.

I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.

All in all these reports cover everything from how much food to store to which banks will go under,  when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.

Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.

To wit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 11winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing six investments that are poised to produce enormous profits in the next month.

We just opened these trades yesterday. Already ALL of them are up.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

As I’ve noted in recent missives to you, the world financial system has begun the Great Collapse: the Crisis I’ve been warning about for over two years. I wanted to take some time to explain what is going to be coming this way

The first wave is going to come from Europe where it is clear that the ECB has reached the End Game of monetary intervention. Germany has said “NEIN” regarding further bailouts for Greece. No German backing… no bailouts… no EU.

So Greece will default. And the bondholders will take a 50% haircut if not more. But Greece is the last of Europe’s worries. Indeed, there is a MUCH bigger problem here and that problem is the same one that created the 2008 disaster: DERIVATIVES.

US commercial banks have over $200 trillion in derivatives outstanding on their balance sheets. However, worldwide, the derivatives market is over $600 TRILLION in size. And the financial system in Europe is as saturated, if not MORE saturated with toxic debt than the US financial system.

According to the Bank of International Settlements, the total exposure worldwide to PIGS (Portugal, Ireland, Greece, and Spain) debt is over $2.5 TRILLION. Most of this is in the form of derivatives. And 70% of it is from foreign entities (banks and firms located outside of the country).

Let’s take Greece for instance. Courtesy of derivatives, France has $92 billion in exposure to Greece debt. Germany is on the hook for $69 billion. Great Britain has $20 billion. And the US has $43 billion.

These levels, while dangerous, are not catastrophic. As I’ve stated before, Greece is NOT the big problem for the EU. However, worldwide exposure to Greek debt is in the ballpark of $277 billion. So a default there would result in significant market dislocations.

Now consider the exposure to a BIG Problem such as Spanish debt. In this situation, Great Britain is on the hook for $51 billion. The US is on the hook for $187 billion. France is on the hook for $224 billion. And Germany is on the hook for a whopping $244 billion.

As I said before, Greece is ultimately a small player in this mess. Worldwide exposure to Greek debt is $277 billion. Worldwide exposure to Spain, on the other hand, is north of $1 TRILLION.

Now this is where things get REALLY tricky. Because of the intertwined nature of the derivatives market, a Greek default could result in systemic risk for the simple fact that if one of the banks that goes down with Greece has extensive exposure to Spain as well, then things could get ugly very, VERY fast.

We are close DARN close to this happening. And when it does, we’re going to see a Crisis that makes 2008 look like a picnic.

Indeed, last week we got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.

It’s just triggered again… which means that last week’s sell off is JUST the beginning of what’s coming.

Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.

We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.

I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.

All in all these reports cover everything from how much food to store to which banks will go under,  when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.

Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.

To wit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 11winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing six investments that are poised to produce enormous profits in the next month.

I’m just putting the finishing touches on this report now. And it will be delivered “hot off the press” to your inbox the second it’s complete this evening.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

The markets are snapping back sharply on short covering and end of the month performance gaming. Hedge funds have been getting destroyed over the last few months. So now, more than usual, there is incentive to push the market higher, mark up their positions, and end the quarter on a positive.

We’ve now filled the gap from last Thursday and our moving to challenge resistance at 1,200.

Do not let these sharp rallies fool you into thinking that the ongoing Crisis in the markets is over. We had very similar sharp rallies in 2008. In fact, during the Crash itself we had three sharp rallies of 11%, 17%, and 20% respectively. Every time the market rolled over hard soon afterwards.

My primary point is that just because stocks rally doesn’t mean things are better. The markets were sharply oversold and short interest was rising dramatically. In this environment it’s quite easy to kick off a sharp short-covering rally due to rumors and the usual end of month performance gaming.

About the rumors.

Steve Liesman of CNBC claims a source informs him that we’re going to see a leveraged European Financial Stability Facility announced soon. Liesman’s source obviously doesn’t know what he or she is talking about OR the story was a plant (or both).

The reason I can say this with certainty is that German is fed up with bailouts as the below quotes from Finance Minister Wolfgang Schaeuble attest:

*SCHAEUBLE SAYS `WILL NOT SPEND OUR WAY’ OUT OF CRISIS

*SCHAEUBLE SAYS `SOLIDARITY HAS LIMITS,’ REQUIRES RETURN EFFORTS

*SCHAEUBLE SAYS `IMMEDIATE FISCAL REFORMS ARE OF THE ESSENCE’

The reality is that Europe in its current form is over. No German backstop means no success for the EFSF no matter who big it becomes. Germany IS the backstop for the EU. Take it out of the equation and the EU in its current form is finished.

So those who are buying into Liesman’s BS are going to be in for a truly RUDE surprise in the coming days. We’ve seen how heavily manipulated rallies end several times in the last six weeks: BADLY.

Indeed, last week we got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.

It’s just triggered again… which means that last week’s sell off is JUST the beginning of what’s coming.

Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.

We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.

I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.

All in all these reports cover everything from how much food to store to which banks will go under,  when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.

Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.

To wit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 11winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory, you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing six investments that are poised to produce enormous profits in the next month.

I’m just putting the finishing touches on this report now. And it will be delivered “hot off the press” to your inbox the second it’s complete this evening.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

The market onslaught of the last week is now staging a snap-back rally. As I write this Sunday evening the S&P 500 has pushed to 1,143 in the futures markets. This was to be expected as we’d come up against the neckline for the Head and Shoulders pattern I noted the last two weeks:

From a larger perspective, 1,110 is a line of MAJOR support. The S&P 500 spent a major portion of 2010 at this level. It’s also the level at which the S&P 500 staged its last bounce before entering the 2008 Crash.

So this is THE line to watch in stocks. Once we take it out, we’re going to 1,000 in short order. By the look of things, it won’t be long.

Indeed, last week we got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.

It’s just triggered again… which means that last week’s sell off is JUST the beginning of what’s coming.

Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.

We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.

I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.

All in all these reports cover everything from how much food to store to which banks will go under,  when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.

Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.

To whit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 11 winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory, you’ll be given access to my Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing six investments that are poised to produce enormous profits in the next month.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

I’ve been warning for weeks now that the Fed would disappoint with its September meeting. And boy did it.

As I forecast, the Fed didn’t announce QE 3. In fact, it didn’t announce any new policy of note. Instead it is simply reshuffling its holdings to focus more on the long end of the bond markets.

On top of this, the Fed announced it will only be moving roughly $400 billion of its portfolio around. This is the smallest major intervention the Fed has announced since it began implementing QE in 2009 (QE 1 was $1.25 trillion while QE 2 was $600 billion). Indeed, this move is on par with the Fed’s implementation of QE lite which to date has been about $300 billion give or take in scope.

Even more striking, while announcing this disappointing move, the Fed downgraded its view of the economy stating, “there are significant downside risks to the economic outlook.”

Previously, any admission of economic deterioration from the Fed resulted in the US Dollar selling off sharply as traders expected additional easing/ printing. This time around, the market senses that the Fed has disappointed and that the Fed’s move is largely symbolic more than anything else.

The end result of this: the market is Crashing just as I warned. The S&P 500 has gone from 1,200+ to 1,136, a 6% drop, in the overnight session.

We’re just getting started here. Today we got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.

It’s just triggered again… which means that today’s sell off is JUST the beginning of what’s coming.

Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.

We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.

I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.

All in all these reports cover everything from how much food to store to which banks will go under,  when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.

Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.

To whit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

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So if you’re looking for a guide to get you through the coming disaster, I’m your man.

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I’m just putting the finishing touches on this report now. And it will be delivered “hot off the press” to your inbox the second it’s complete this evening.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

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Best Regards

Graham Summers

While most commentators proclaim that QE is a completely new phenomenon, we have in fact seen a version of it in the form of the Fed’s and Asia’s (especially China’s) purchases of US Treasuries/ currency pegs over the last decade or so.

Indeed, today, the Fed, China, and Japan collectively hold 61% of the $10 trillion of US debt held by “the public.” When you add in the additional $4.6 trillion in US debt held by “intragovernmental holdings” (basically the Federal Government buying Treasuries by raiding Social Security and other pension funds) you find that Asia and the Feds have monetized $10.7 trillion of the US’s total $14.6 debt (roughly 73%) over the last 20 years.

In this context, unveiling even more QE (the Fed buying US debt) is virtually pointless. Indeed, the Fed would have to unveil a QE plan of $2 TRILLION just to make its US debt ownership on par with the Federal Government’s “intragovernmental holdings.”

To put a $2 trillion QE program into perspective, that would be on par with the Fed unveiling a QE program equal to QE 1, 2 and some of QE lite combined in one single program.

Now, if QE 2 which was only $600 billion, blew the price of food and energy through the roof, how would a QE program of $2 trillion impact these items? Do you really think the Fed could unleash a QE program of that size without inciting full-scale unrest in the US, not to mention destroying the US Dollar.

And with the Fed already as unpopular as it is, Obama’s polls falling to new lows on a weekly basis, and Bernanke well aware of the potential legal issues coming his way, the odds of the Fed doing this in two weeks’ time are next to none.

Indeed, the Fed’s balance sheet is already close to $3 trillion in size. How would commodities and the US Dollar respond to a Fed balance sheet of over $5 trillion? The Fed has already proved it has no means of draining the liquidity its put into the system in the last two years. What impact would an additional $2 trillion have?

The short answer is that QE 3 of that size would kill the US Dollar, destroy the US economy, and result in Bernanke being forced to resign at the least and possibly the Fed being dissolved.

Do you think the Fed would do this? These guys are morons, but they’re not so stupid as to take note of how the Greeks responded to financial ruin.

Another consideration is that each new Dollar of QE has created less “bang” for the marketplace. As I noted in previous articles, QE 2 proved that each new Fed stimulus program is less effective than the first. At that time I wrote:

Consider that QE 1 provided $1.25 trillion in liquidity to the markets. From the date of its inception until its end, the S&P 500 roughly 540 points. Put another way, each $10 billion was worth 4.3 points on the S&P 500.

In comparison, QE lite and QE 2 put roughly $900 billion into the market (roughly 75% of QE 1) creating a 251-point rally in the S&P 500. In this case, every $10 billion in additional capital was worth 2.7 points on the S&P 500.

So in financial terms, QE 3 is not likely to have a large impact on the market. The reason is that the entire US GDP miracle has been induced by some form of QE whether it be the Fed, China or Japan buying US debt or the US raiding pension funds to buy Treasuries over the last 20 years.

Combine these facts with the inflationary pressures created by QE 2 as well as the current political climate which is increasingly anti-Fed, and it’s clear the Fed will not be able to unveil QE 3 without some kind of catastrophe hitting first. Put another way, the Fed will be acting purely reactively, not proactively going forward.

This sets the stage for a MAJOR upset to the downside in the near future. Indeed, I fully believe that we may be on the verge of a market Crash. Behind the scenes, the market is on DEFCON Red Alert. Ignore what the mainstream media and White House are saying, we are in BIG TROUBLE.

So if you’ve not already take steps to prepare for what’s coming, you need to do so NOW while the markets are still holding up.

Because once the selling pressure comes back into the markets… it’s going to be far FAR too late.

To take action to insure you don’t get crushed in the coming Collapse…

Click Here Now!!!

Best Regards

Graham Summers

The financial markets are currently waiting for the Fed to announce QE 3 or Operation Twist 2 either today or tomorrow. I don’t think either of these are coming. In fact, I think they’re not even on the table.

For starters, QE 3 is off the table unless we see a market collapse or a major bank go under. That’s the truth, though the financial media refuses to accept it.

The reasons for this are both political and financial. From a political standpoint, the Fed particularly Ben Bernanke, has become politically toxic

Indeed, Bernanke and his loose money policies are now virtually synonymous with current President Barrack Obama’s spending and stimulus programs.  Neither of these men or their policies are popular with the American people today. And it’s clear that both will be campaign issues going forward into the 2012 Presidential election.

Indeed, we’ve already seen one round of spending conflicts between the GOP and the President. True, it was mainly smoke and mirrors. However, the fact that the topic of Government spending is now being debated at all indicates that the political environment has shifted from one in which the Government was seen as the savior of the economy (as it was from March 2009 to the end of 2010) to one in which Government spending and deficits are perceived as a problem/ campaign issue.

That is a massive shift in political perspective. Only two years ago the Federal Reserve and Obama were thought to have saved capitalism and the US economy. Today Obama’s polls are at new lows and the Fed has been openly criticized by three of the Republican frontrunners for the 2012 Presidential election (Perry, Bachmann, and Paul).

This is hardly a climate in which the Fed can unveil QE 3 without some catastrophe striking first. On top of this, the Fed is also going to be facing increased political and likely even legal pressure from Wall Street in the near future.

First off, Goldman Sachs CEO Lloyd Blankfein has hired a criminal defense attorney… and not just any attorney, but Reid Weingarten. I’ll let the following portion of a Bloomberg article speak for this man and his track record.

Weingarten won the acquittal in May of Lauren Stevens, a former GlaxoSmithKline Plc (GSK) attorney accused of impeding a U.S. Food and Drug Administration investigation. He also represented Elizabeth Monrad, the former chief financial officer at General Reinsurance Corp. who was convicted in an accounting fraud scandal. She won a retrial earlier this month.

Weingarten previously represented former WorldCom CEO Bernard Ebbers, who was sentenced to 25 years in prison after he was convicted of an $11 billion fraud. He defended former Enron Chief Accounting Officer Richard Causey, who was sentenced to 5 1/2 years in prison.

If Blankfein is under investigation and hiring someone of Weingarten’s caliber, a massive legal storm is about to begin on Wall Street. These lawsuits will involve the US Federal Reserve. And when push comes to shove, Blankfein (and other Wall Street executives who broke the law) will be blaming Bernanke and the Fed.

After all, the easiest defense is for Blankfein and his kind to simply say that they were pressured into defrauding investors and the public by Bernanke and the Fed when the financial system imploded in 2008.

Given that the Fed is run by spineless academics while Goldman Sachs and other Wall Street firms are run by those who make a career out of profiting at other’s expense, who do you think will be going down when the legal dust settles?

Bernanke and the Fed.

The Fed already senses this and is moving to defend itself and shift the blame for the Financial Crisis to Wall Street. Consider that not long after Blankfein hired Weingarten, the Fed actually sued Goldman Sachs:

The Federal Reserve announced an enforcement action against Goldman Sachs Group Inc., saying the company’s mortgage-servicing unit had engaged in “a pattern of misconduct and negligence” in its handling of home-mortgage loans.

The Fed’s action on Thursday seeks changes in mortgage-servicing practices and unspecified monetary damages. It came as Goldman reached an agreement with New York state banking regulators over wrongful foreclosures, allowing it to complete the Sept. 1 sale of its Litton Loan Servicing unit to Ocwen Financial Corp.

The significance of this development cannot be overstated. Goldman Sachs used to be one of the Fed’s favorite firms. Indeed, it could easily be argued that Goldman received the most preferential treatment from the Fed during the Financial Crisis.

Given just how close Goldman was to the Fed previously, the Fed/ Goldman relationship would only breakdown if an external threat meant that either group is going to be in MAJOR legal trouble (possible jail time). In light of Blankfein’s recent moves as well as the Fed’s lawsuit against Goldman, I fully believe that this is the case and that the relationship between the Fed and Wall Street will be deteriorating further in the coming months.

In a climate of increased legal pressure such as this, the bar for QE 3 is going to be much, much higher.  It’s one thing if the Fed and Goldman Sachs were simply making critical statements about one another in public. But lawsuits/ legal actions are a totally different matter. In plain terms things are now getting very serious behind the scenes. And Bernanke will not be able to simply do as he pleases without consequence.

For this reason, it will take another catastrophe for the Fed to implement QE 3. The days of the Fed implementing QE just for the sake of raising the stock market or affecting a “recovery” are over. It is clear now, even to those who have little financial understanding that Obama and Bernanke have essentially spent trillions of Dollars and accomplished next to nothing.

As a result of this, the Fed will be implementing large-scale moves ONLY in reaction to crises. Imagine the political impact it would have if the Fed were to unveil QE 3 today or tomorrow two with Oil already at $86 a barrel and food prices skyrocketing.

Indeed, I fully believe the Fed will disappoint in a BIG way today and tomorrow. With every one and their mother expecting QE 3 or some other major program today and tomorrow, the potential for MAJOR market upset is higher than ever before.

Indeed, I fully believe that we may be on the verge of a market Crash. Behind the scenes, the market is on DEFCON Red Alert. Ignore what the mainstream media and White House are saying, we are in BIG TROUBLE.

So if you’ve not already take steps to prepare for what’s coming, you need to do so NOW while the markets are still holding up.

Because once the selling pressure comes back into the markets… it’s going to be far FAR too late.

To take action to insure you don’t get crushed in the coming Collapse…

Click Here Now!!!

Best Regards

Graham Summers

The financial markets are literally standing on the ledge of a cliff looking down into the abyss. The fact we’ve had a coordinated Central Bank intervention in the last week should tell you just how desperate things are getting.

The one hope for the bulls is that the Fed will announce some massive new program at its September meeting which takes place tomorrow and Wednesday. I fully believe the Fed will disappoint in a big way as Bernanke and his loose money policies have become politically toxic: see the GOP debate in which all frontrunners united in their criticism of the Fed.

The market looks to be agreeing with me. The bearish flag formation I warned about last week remains in play. The ultimate downside target for this is 1,000 on the S&P 500.

Within the bearish flag formation, we’ve also got the makings of a Head and Shoulders pattern: another very bearish formation. The drop Sunday night has made this pattern even more probable.

Neither of these formations predict a massive rally on QE 3 or some other new Fed program. Indeed, how can the Fed announce something new? A record number of Americans say they are paying more for their food. Oil is close to $90 per barrel. And Gold is north of $1,800, having touched $1,920 earlier this month.

Aside from this, the Fed has already instigated several new moves this month including the coordinated Central Bank intervention of last week and the opening of FX swap lines last month. I view these moves as preparation for a Greek default, which is most certainly in the near future.

Indeed, having staged two bailouts of Greece and talking down the possibility of a Greek default non-stop over the last 18 months, the ECB and political leaders in Europe seem to have done a complete 180, with the notion of a Greek default now a matter of “when” not “if.”

In early 2010, a Greek default was never even considered to be on the table. At that time, the entire discussion focused on whether or not Greece even needed a bailout. Today, the words “Greek Default” show up in almost every headline pertaining to Europe.

Greece Has 98% Chance of Default on Euro-Region Sovereign Woes

Potential Greek Default Worries European Politicians

Greece default ‘virtually 100 percent

Scenarios: Potential market impact of a Greek default

I fully believe that behind the scenes, the groundwork has already been laid for Greece to default. The market is already pricing this as a 100% certainty. France has its own problems and won’t be able to provide another Greece bailout. Germany is now in another round of elections in which voters are destroying Angela Merkel and her party for supporting the bailouts… at a time when it’s revealed that even German banks needs tens of billions more in capital.

In simple terms, the “bailout” madness is ending in Europe. What will follow will be a Greek default followed by debt collapses and restructurings in Italy and Spain. Europe is already aware of this, which is why liquidity has dried up to the point that the world’s Central Banks had to stage a coordinated intervention last week.

Indeed, I fully believe that we may in fact be on the verge of a Crash in the markets. All the Red Flags are there. Europe’s entire banking system is on the verge of systemic collapse. Take a look at European banks and you’ll see what I mean.

This is Agricole, the mega-French Bank. Does this look like a solvent financial institution to you? Do you really think that Europe has a chance when even French and German banks are collapsing?

Let’s be blunt, the global financial system is now on DEFCON Red Alert. If you have not already prepared your portfolio for a possible CRASH, you NEED to move now! Because by the time the selling pressure comes back into the markets in a BIG way (next week or so) it will be too late.

I can show you how to turn this into a time of profits, NOT pain. My Private Wealth Advisory subscribers MADE money during the Crash of 2008 as well as the Euro Crisis of May 2010. And we’ve already locked in gains of 7%, 8%, and 9% during the first leg down in this latest collapse.

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Graham Summers

The market is rallying on short-covering and the usual options expiration manipulation. It’s now obvious traders are gunning for 1,200 on the S&P 500. We were at 1,140 o the S&P 500 only three days ago. A 5% move in just two days is not healthy nor is it good for the market as a whole.

The economic and fundamental backdrop today is absolutely terrible. Retails sales were negative when you account for inflation. The Philly Fed index missed again. Last month we didn’t add a single job for the first time since 1945. And on and on.

The bond and credit markets are now pricing in an economic depression while stocks are roaring as though the recovery is fully in place and we’re going into another period of sustained economic growth. Which one are you going to believe?

Given that stocks mis-read the 2007 recession, the 2008 liquidity Crisis, the Euro Crisis, Greece, and the ongoing US depression, we’d suggest not betting on stocks being right this time.

The primary problem is that the world Central Banks continue to intervene to prop the markets up. We had a global intervention earlier today… forcing the US Dollar to collapse while the Euro soared.

This is an act of desperation. It is essentially an admission on the part of the Central Banks that Europe is in a full-scale liquidity crisis a la pre-Lehman.

Indeed, what’s truly amazing is to see stocks rallying on news concerning Greece… at the same time that Greece bonds are pricing in a default with 100% certainty. Makes you wonder just who is buying stocks at these levels.

Could the Fed be forcing stocks higher in anticipation of a Greek default just as it bought the market following its disappointing August 9 and Jackson Hole announcements? Or could the Fed be juicing the market higher because no QE 3 is coming next week at its FOMC meeting?

The primary point is this: stocks have been notoriously wrong on most economic developments for well over 3 years. The larger, more liquid credit and bond markets are forecasting an absolute disaster is about to unfold.

Indeed, I fully believe we‘re on the eve of another 2008-style Crash. All the signs are there. Whether it’s a Greece default, Societe General going under, or some other event, the markets are on DECON Red Alert.

On that note, if you’re looking for actionable advice to help you navigate the coming carnage, my Private Wealth Advisory newsletter has been showing investors how to profit from any market environment.

To whit, my clients MADE money in 2008. They also made money during the Euro Crisis of 2010. And they’re making money now, while 99% of investors lose their shirts.

If you’d like to join us, you can take out a “trial” subscription to Private Wealth Advisory… and join my list of private clients in receiving my bi-weekly market updates and real-time trading alerts… if you…

Click Here Now!

Graham Summers

If you believe that our leaders have even the slightest clue of how to solve the economy’s problems, Obama’s jobs proposal should rid you of your delusion.

This is not a matter of political affiliation nor is it an attack of Obama as a person. It’s a simple matter of basic math.

Obama wants to spend roughly $500 billion to create two million jobs (that’s the claim at least). Put another way, Obama would spend roughly $250,000 to create a single job. That’s a heck of a lot of money in an economy in which the average income is $50K or so.

That’s just the basic math. I’m not even bothering to assess the fact that the Government is already spending over $1 TRILLION per year and hasn’t created a sustainable job recovery.

So how exactly will another $500 billion change things?

Also, where is the Government going to come up with this money exactly? Didn’t we just say we needed to hike the debt ceiling by another $500 billion? Aren’t we already running Debt to GDP and Deficit numbers that are on par with Greece: a country that is guaranteed to default in the near future?

Folks, this is the hard truth: the US is broke and our leaders have no clue how to solve any of the structural issues our economy and markets are facing. They’ve spent TRILLIONS propping up the stock market but haven’t created new jobs nor have they improved Americans’ quality of life in the last two years.

In other words, we’re at the End Game for Government Intervention in the economy and marketplace. Greece has already shown us what’s coming: default and debt restructuring.

After all, there are only two ways to deal with a debt problem:

1)   Pay it off

2)   Default

The US has no chance at all of ever paying off its debts, which means some form of default and restructuring is coming our way in the future. And when this hits, it will make 2008 look like a picnic.

On that note, if you’re looking for actionable advice to help you navigate the coming carnage, my Private Wealth Advisory newsletter has been showing investors how to profit from any market environment.

To whit, my clients MADE money in 2008. They also made money during the Euro Crisis of 2010. And they’re making money now, while 99% of investors lose their shirts.

If you’d like to join us, you can take out a “trial” subscription to Private Wealth Advisory… and join my list of private clients in receiving my bi-weekly market updates and real-time trading alerts… if you…

Click Here Now!

Graham Summers

The similarities between 2008 and today are getting scarier by the day. We’ve already seen the Hank Paulson mega-bazooka-bailout from the Emergency Fund in Europe. We’ve also seen short-selling bans, verbal interventions, the Warren Buffett bailout (recently BAC, though it was GS in 2008) and of course the “China saves the day” purchases (Morgan Stanley in 2008 and Europe today).

Now we have Societe General’s CEO doing his best Dick “we’re well capitalized” Fuld impersonation on CNBC, as well as yet another “China saves the day” rumor forcing the markets up nearly 2% in just one hour.

Does anyone remember how China’s 2008 “save the day” purchases turned out? How about Wall Street’s claims of being “well-capitalized” (including CEOs of Merrill Lynch, Lehman Brothers, even Goldman Sachs)? Have people really forgotten how that whole mess turned out in 2008?

Most importantly, does anyone REALLY think this situation will turn out differently this time around? Who exactly would want to buy the market based on rumors of China buying European bonds? How did China’s support of the Euro work out earlier this year?

Let’s be honest here. Neither China, nor the ECB, nor the Federal Reserve can stave off the collapse that’s coming. Indeed, the Fed spent $900 billion and nearly one year to prop the markets up… and we’ve wiped out ALL of those gains in just one month.

On top of this, the credit markets indicate that we are now heading rapidly into a full-scale Depression and market Crash that will make 2008 look like a picnic. Do you remember a time when stocks held up on rumors while the credit markets forecast a collapse?

That’s right… the last time stocks held up while Bonds and the Credit markets forecast disaster was right on the even of the 2008 Crash. They’re flashing the SAME warning signals this time too. Only this time the powers that be won’t be able to do anything about it.

Indeed, by the time the smoke clears on this thing we’re going to see civil unrest, bank holidays (no to mention hundreds of bank failures) systemic collapses, and even food shortages.

Do not be fooled by the mainstream media they’re completely behind the curve on this one (just as they were the 2008 Crash).

I’m not. Indeed, I’ve got investors already positioned for what’s coming with a number of concentrated Crisis Trades that will pay out HUGE returns as the Crash unfolds.

Case in point, while everyone else lost their shirts in the last month, my clients actually MADE money.

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We’re literally ready for whatever may come, whether it be bank holidays, food shortages, civil unrest, markets Crashes and more.

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You can too. With a “trial” subscription to my Private Wealth Advisory newsletter.

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Best Regards

Graham Summers

I’ve been warning that the markets were on the verge of another round of Deflation. By the looks of things, it’s here with the US Dollar breaking out of its massive wedge pattern:

The ultimate target for this pattern is the mid-80s. So consider this latest breakout the first leg up of a much larger move that will affect all other asset classes in a big way.

In order for a move of that caliber to occur in the US Dollar, we’ll need to see a full-scale crisis to hit the markets (the last two US Dollar rallies occurred during the 2008 collapse and the 2010 Euro Crisis). So expect greater downside risk in stocks in the near future.

On that note, the S&P 500 has broken out of its bearish flag formation to the downside. The ultimate target for this pattern is at 1,000: 13% DOWN from here. Considering that we’ve already wiped out a year’s worth of gains in one month, this should be a MAJOR warning that we’re not done yet.

On that note, if you’re looking for actionable advice to help you navigate the coming carnage, my Private Wealth Advisory newsletter has been showing investors how to profit from any market environment.

To whit, my clients MADE money in 2008. They also made money during the Euro Crisis of 2010. And they’re making money now, while 99% of investors lose their shirts.

If you’d like to join us, you can take out a “trial” subscription to Private Wealth Advisory… and join my list of private clients in receiving my bi-weekly market updates and real-time trading alerts… if you…

Click Here Now!

Graham Summers

I’ve said many times before that QE 3 won’t be coming any time soon unless the market Crashes or a major bank goes under. The reason is that QE (and Ben Bernanke for that matter) have been politically toxic: we’ve already seen that the Fed will be a major political issue in the 2012 Presidential election.

The Fed is aware of this; at least the more astute members who have an interest in preserving their careers.

Kocherlakota-need for more Fed easing ‘unlikely’

A top Federal Reserve official who opposed the U.S. central bank’s move last month to ease monetary policy signaled Tuesday he may balk again if fellow policymakers opt for still more stimulus this month.

“The data in August did not justify the additional accommodation provided at that meeting,” Minneapolis Federal Reserve Bank President Narayana Kocherlakota said in remarks prepared for delivery at the University of Minnesota’s Carlson School of Management. “It is unlikely that the data in September will warrant adding still more accommodation.”

http://www.reuters.com/article/2011/09/06/usa-fed-kocherlakota-idUSN9E7J700J20110906

Kockerlakota now joins Dallas Fed President Fisher in establishing himself as a hawk: one who opposes additional easing. I fully believe Bernanke will be stepping down within 18 months (even Obama won’t shelter him). When that happens, a more hawkish Fed Chairman will be picked. Looks like Kockerlakota is putting himself in the running for the job.

So all claims that QE 3 is just around the corner needs to consider what will happen if QE 3 isn’t announced in September. What happens if the markets DON’T get the additional easing that the bulls are hoping for?

Have a look at what happened in early August and you’ve got your answer. Indeed, I fully believe we have reached the End Game for Fed Intervention: a time when the Fed can no longer maintain control of the markets. What will follow will make 2008 look like a picnic.

Indeed, I fully believe that the financial system is now more in danger of systemic collapse than at any point in history (including 2008). Do NOT be fooled by the rally of the last few days. We saw rallies of 8%, 11%, even 17% during 2008. Those investors who bought into them got taken to the cleaners.

Things are so dangerous that I’ve had Private Wealth Advisory subscribers open our Crisis Trades: the trades we used to produce triple digit gains during the 2008 Crash.

We’ve also prepared our personal finances and loved ones for what’s coming (Crashes, civil unrest, food shortages, bank holidays and more) with my Prepare Your Family, Prepare Your Savings, and Prepare Your Portfolio reports.

If you’ve yet to take steps to prepare your portfolio and your loved ones for what’s coming, NOW is the time to do so while the markets are still holding up.

Because once the selling pressure comes back into the markets (a matter of days) it will be too late.

To take action now, pick up your copies of my Prepare Your Family, Prepare  Your Savings, and Prepare Your Portfolio reports and join my private client list in receiving my bi-weekly market analyses and real-time investment alerts, all you need to do is take out a “trial” subscription to Private Wealth Advisory…

To do so… and start preparing for a Crisis that will make 2008 look like a picnic (heck just look at the first leg down that occurred in early August)…

Click Here Now!!!

Best Regards

Graham Summers

Now that the Swiss have pegged the Franc to the soon-to-be-broken-up Euro, the US Dollar is now the primary “flight to safety” paper currency for the world. With that in mind, we need to consider that the greenback appears to be forming a massive wedge pattern:

This pattern predicts a possible target of the mid-80s. Remember, the last two major US Dollar rallies were caused by Crises (2008 and the Euro Crisis of 2010). So if the greenback explodes again here, it will be based on another round of deflation/ systemic risk.

However, in order for us to get there, we need to take our resistance at 76:

This is the line to watch. When we take out 76, the financial system will be in BIG TROUBLE again.

Indeed, I fully believe that the financial system is now more in danger of systemic collapse than at any point in history (including 2008). Do NOT be fooled by the rally of the last few days. We saw rallies of 8%, 11%, even 17% during 2008. Those investors who bought into them got taken to the cleaners.

Things are so dangerous that I’ve had Private Wealth Advisory subscribers open our Crisis Trades: the trades we used to produce triple digit gains during the 2008 Crash.

We’ve also prepared our personal finances and loved ones for what’s coming (Crashes, civil unrest, food shortages, bank holidays and more) with my Prepare Your Family, Prepare Your Savings, and Prepare Your Portfolio reports.

If you’ve yet to take steps to prepare your portfolio and your loved ones for what’s coming, NOW is the time to do so while the markets are still holding up.

Because once the selling pressure comes back into the markets (a matter of days) it will be too late.

To take action now, pick up your copies of my Prepare Your Family, Prepare  Your Savings, and Prepare Your Portfolio reports and join my private client list in receiving my bi-weekly market analyses and real-time investment alerts, all you need to do is take out a “trial” subscription to Private Wealth Advisory…

To do so… and start preparing for a Crisis that will make 2008 look like a picnic (heck just look at the first leg down that occurred in early August)…

Click Here Now!!!

Best Regards

Graham Summers

The European banking implosion has now shifted into hyper-drive. We’ve now broken out of the triangle pattern of the last few months in a big way to the downside. I’ve added the movements made in the overnight futures session to the chart below.

German courts are scheduled to rule whether Germany can even participate in European bailouts this Wednesday. Given the action in the Euro it looks like the answer won’t be positive. Indeed, there are rumors swirling that Germany may in fact even pull out of the EU altogether (I’ll believe this when I see it).

One thing is for sure, the European markets are in a free-fall. Germany and France’s stock markets fell 5% and 4% respectively. By the looks of things, they’re heading straight into their version of a 2008 type event.  Given how interconnected the global banking system has become, this could very well spill over into the US in short order.

Indeed, the US stock markets have collapsed in the overnight session. I’ve added the drop  to the below chart. One more hard down day and we’re at new lows for this collapse (as I forecast a week ago).

We have now wiped out almost all of the gains of the last week and a half and it looks as though we are heading rapidly into the 2008-type Collapse I’ve been warning about for weeks.

If you’ve yet to take steps to prepare your portfolio and your loved ones for what’s coming, NOW is the time to do so. Because at the pace we are going, we could see a full-scale market Crash within the next week or two.

However, that’s not all we’re facing. If the European banking system collapses, we could very well see a Round of Systemic Risk that could involve bank holidays, food shortages, civil unrest, and more.

This is why I released my three special reports titled, Prepare Your Family, Prepare Your Savings, and Prepare Your Portfolio: to help my Private Wealth Advisory subscribers prepare these areas of their lives for a Crisis that will make 2008 look like a picnic.

In terms of specific investment strategies, I’ve also had my clients move into our Special Crisis Trades: the very same trades we used to make triple digit returns in 2008.

So we’re positioned for whatever may come. In fact, the worse things get, the greater our profits will be.

If you’re ready to take action now, prepare your personal finances and loved ones for what’s coming, and potentially even lock in triple digit winners when the Crash come, you NEED to take our a trial subscription to my Private Wealth Advisory newsletter.

You’ll immediately be given access to my Prepare Your Family, Prepare Your Savings, and Prepare Your Portfolio reports telling you in pain-staking detail how to prepare these areas of your life for what’s coming.

You’ll also join my private client list (including executives at some of the largest corporations in the world as well as every major financial firm on Wall Street) in receiving my bi-weekly market analyses and real-time investment alerts, devoted to helping you profit in any market environment.

To do so… and start preparing for a Crisis that will make 2008 look like a picnic (heck just look at the first leg down that occurred in early August)…

Click Here Now!!!

Best Regards

Graham Summers

“The bottom is in! Stocks are in a new bull market. QE 3 is just seconds away!”

These are the taglines being tossed around by the mainstream financial media as stocks get rammed higher into month’s end. As usual these folks are both clueless and wrong.

We had the exact same move at the end of June when the market exploded over 8% due to end of the month (and quarter) performance gaming and start of the month/ quarter buying.

Here’s what followed:

So here we are again…  it’s the end of the month, volume is extremely light because of the upcoming weekend… and SURPRISE! Stocks are exploding higher again. In fact, we’re up 9%, quite similar to the 8% rally at the end of June.

Folks, this current move is just another trader game occurring on next to no volume. It will end precisely as the end of June rally did: in misery.

Indeed, the credit markets haven’t budged from being on DEFCON 1 throughout this rally. The European banking system continues to implode with Germany and France now being drawn into the mess. And the US economy is an absolute disaster no matter what the fudged data says.

QE 3 won’t solve this mess (assuming it even arrives). Neither will the European bailout fund. We’re already in the Second Round of the Great Crisis which will see the EU broken up, the US economy implode, and a market collapse that will make 2008 look like a joke.

Take a look at what happened in Greece earlier this year. That’s what’s coming to the US: market crashes, bank holidays, civil unrest, shortages, and more. Many people are going to see their portfolios get completely destroyed.

But you don’t have to be one of them.

Indeed, I can show you how to turn this period into a time of profits, NOT pain. To whit, my clients actually made money in 2008, having been warned a full three weeks in advance of the Crash to get out the market and go short.

I believe we could see another 2008 situation unfold in the near future, which is why I just unveiled six specific trades to subscribers… all of which will pay off HUGE returns as the current stock market collapse accelerates.

We’ve also taken steps to prepare ourselves sand our loved ones for what’s coming to the US economy (bank holidays, food shortages, stock Crashes, debt defaults, civil unrest and more) with my Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports: 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

So we’re ready for whatever may come. And the worse things get… the more profitable our strategy will be.

If you’ve yet to take these steps yourself, it’s not too late… in fact, you’ve still got time to get your financial “house” in order to not only survive what’s coming… but potentially even make serious money from it.

All you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to the Private Wealth Advisory archives. You’ll also receive copies of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Good Investing!

Graham Summers
Editor In Chief
Gains Pains & Capital

The financial world is swirling with numerous claims that the Fed telegraphed QE 3 will be coming at its September FOMC meeting. I don’t see this at all. All that Fed did was admit that its September meeting will be two days instead of one so it can have a “fuller discussion” about things.

A “fuller discussion” doesn’t mean anything. This was just Bernanke throwing the markets a bone so they wouldn’t implode with no QE 3. The majority of his speech was devoted to blaming Congress for his complete and utter lack of understanding of finance and capital markets.

Of course I get what Bernanke’s doing (it was just revealed that he funneled $1,2 trillion to Wall Street behind the scenes). The guy’s going to want to divert attention (and blame) to someone else. And with various Wall Street CEOs now hiring defense lawyers for the REAL wave of litigation, you better believe Bernanke’s getting worried about what’s coming his way in the future.

As for the Fed’s “fuller discussion” in September coming up with QE 3 or something else, give me a break. Do you really think the Fed hasn’t already discussed QE 3 and every other insane intervention you can imagine over since the Financial Crisis began in 2008? Do you really think that the Fed’s magically going to come up with something new that will fix the Financial System?

Let’s be blunt here, the only thing that will cause QE 3 to come out will be :

1. Another market Crash (S&P 500 sub-100) or
2. A major bank collapsing.

That’s it. QE 3 is not going to be some “let’s push stocks higher” move. It’s going to be a “desperately trying to hold the system together” move.

Now, about the stock rally that began on Friday.

This is not the first market rally that’s occurred as an insane reversal after a disappointing Fed statement. We had the exact same move occur after the Fed’s disappointing August 9^th FOMC. That move had “market intervention” written all over it.

This one did too. Indeed, it’s just a little odd that both of the last two Fed announcements saw the markets sell off hard then suddenly stage insane rallies.

What’s even stranger is that the credit markets haven’t bought into either of these moves at all. Do you really think that QE 3 is coming in a few weeks?

Another thing… shouldn’t Gold be exploding higher if QE 3 was just around the corner? Would it really be forming a Head and Shoulders if more monetization was coming?

Let’s just call this latest rally for what it is: end of the month performance gaming aided by clear Fed intervention in the markets last Friday. This will end badly just as the last rally did (we wiped out ALL of its gains in a few days).

To me, the message is clear. The Fed won’t be unleashing QE 3. And the markets remain on Red Alert. Indeed, we’ve had several insane snapback rallies during the 2008 collapse. Indeed, in the span of two months we saw three rallies of 11%, 17% and 20%.

These last few rapid rallies have the exact same feeling to them. And they will very likely end the same way: in disaster. Many people are going to see their portfolios get completely destroyed.

But you don’t have to be one of them.

Indeed, I can show you how to turn this period into a time of profits, NOT pain. To whit, my clients actually made money in 2008, having been warned a full three weeks in advance of the Crash to get out the market and go short.

I believe we could see another 2008 situation unfold in the near future, which is why I just unveiled six specific trades to subscribers… all of which will pay off HUGE returns as the current stock market collapse accelerates.

We’ve also taken steps to prepare ourselves sand our loved ones for what’s coming to the US economy (bank holidays, food shortages, stock Crashes, debt defaults, civil unrest and more) with my Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports: 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

So we’re ready for whatever may come. And the worse things get… the more profitable our strategy will be.

If you’ve yet to take these steps yourself, it’s not too late… in fact, you’ve still got time to get your financial “house” in order to not only survive what’s coming… but potentially even make serious money from it.

All you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to the Private Wealth Advisory archives. You’ll also receive copies of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Good Investing!

Graham Summers
Editor In Chief
Gains Pains & Capital