Graham Summers’ Free Weekly Market Forecast (Stocks are Last To Get It Edition)

For months
now the commodities sector has been leading stocks. Of the commodities
agricultural commodities were the market leaders: they began this rally back in
June 2010, a month before Gold and two months Oil hit lift off:

With that in
mind, the first warning we got of trouble in the markets came from the agri
space which began to roll over in February 2011. They fell hard, forming a
domed top and are now bouncing off support to retest their descending trendline
since the Feb 2011 top:

If we break
the descending trendline, we’re likely to re-test the Feb 2011 highs.
Alternatively, if we break support, we’re going to $9.50 if not $8.50 in short
order.

IF this
happens, then expect stocks to take a BIG hit. So far they’re held up
relatively well although as we all know by now, stocks are ALWAYS the last to
“get it.” So the fact that stocks have held up while commodities (especially
the economically sensitive ones like copper and oil) have taken a dive could in
fact be a BAD thing as it predicts some serious pain for stocks.

On that
note, the primary line to watch here is support at 1,325. If  we take out that line with conviction,
stocks are going to 1,300 if not 1,250.

Indeed, the
S&P 500 has formed a triangle pattern that predicts a potential breakdown
to 1,260 if not lower. So be on the lookout for a potential SERIOUS correction
coming shortly.

So more
money printing is coming. There’s no question of that.

On that
note, if you’ve yet to take steps to prepare your portfolio for the coming
inflationary disaster, our FREE Special Report, The Inflationary Disaster explains not only why inflation is here
now, why the Fed is powerless to stop it, and three investments that absolutely
EXPLODE as a result of this.

All in all
its 14 pages contain a literal treasure trove of information on how to take
steps to prepare AND profit from what’s to come. And it’s all 100% FREE.

To pick up
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and click on FREE REPORTS.

Good
Investing!

Graham
Summers.

PS. We also
offer a FREE Special Report specifying exactly how to prepare for the coming
collapse in the US stock market (inflation will NOT be positive for stocks for
much longer).

I call it The
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wealth of information about portfolio protection, which investments to own and
how to take out Catastrophe Insurance on the stock market (this “insurance”
paid out triple digit gains in the Autumn of 2008).

Again, this
is all 100% FREE. To pick up your copy today, go to http://www.gainspainscapital.com
and click on FREE REPORTS.

Comments

[JollyRoger]

This looks like a replay of last year, only this time around the Dollar is has lost more ground as a safe haven.

http://silvercointrader.com/2011/05/will-investors-flee-to-the-us-dollar-if-the-euro-crashes/

[disabledvet]

I'm sorry..."did you say Greek CDS spreads are blowing out?"  Must be all that oil, copper, gold....ah, ah, ah,..."yeah and shit" that they have that's the problem "now that the prices are falling for it all."  Now how are those "bailouts" going Wall Street?  Sure you wanted them?  I have shown "there is such a thing as a free coffee."  Jury is still out on "free checking" however.  Must be an internet thing...."free checking but no banking."

[BeerGoggles]

You still here?

Graham summers buys oil 110 and buys euro at 1.47. Best calls ever.

I call it The Financial Crisis “Round Two” Survival Kit.

oh and if this is the case, why did you sell all your crisis trades a few weeks ago?