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Graham Summers’ Weekly Market Forecast (Hanging By a Thread Edition)
With options
expiration over for this month, the stock market is now clinging primarily to
the Fed FOMC meeting tomorrow and Wednesday. As noted in last week’s market
forecast, if the Fed does not hint at additional liquidity during this meeting
we could enter a full-scale bloodbath.
Remember,
the primary driver of all stock momentum has been the Fed providing liquidity.
The economic data coming out of the US is abysmal (especially since February
2011), housing is a confirmed double dip, unemployment remains terrible
(especially when we remove BLS accounting gimmicks) and on and on.
So with QE 2
ending in the coming weeks, only three things are holding the market up from a
technical standpoint:
1) The
Fed FOMC meeting (and the hope for more liquidity)
2) Second
quarter performance gaming (2Q ends June 30)
3) The
200-DMA
Regarding
the final point, the S&P 500 is now being compressed between its 50- and
200-day moving averages. We are due for a bounce off the 200-DMA (possibly to
1,300 on the S&P 500) but unless stocks can muster some serious upside
momentum, it will only be a bounce followed by more losses.
My
suggestion to traders this week is to remain on the sidelines when it comes to
stocks. There are too many variables at play for a clear sign of what’s coming.
And given the degree of danger in the world, the potential for things to enter
full-scale Crisis mode is quite high.
Indeed, the
financial system at large is on red alert. Interbank liquidity has begun drying
up in both Europe and Asia. Europe is an absolute disaster with more and more
Europeans wanting out of the Euro (25% of Greeks, and nearly 60% of Germans).
Italy has open discussed potentially dropping out of the Euro, while Spain and
Portugal continue to see their debt systems teetering as well.
Meanwhile,
here in the US, we have officially breached the debt ceiling. Tim Geithner is
now actively raiding pension funds to meet debt demand (a policy he admits will
only work until early August).
Aside from
this, other countries are rapidly dropping US debt like a hot potato. Russia
has sold off 30% of its US Treasury holdings. China has lowered its holdings
for five months straight and has even suggested selling off 2/3 of its
exposure. And with even legendary bond investors like Bill Gross avoiding
Treasuries, we’re rapidly heading into a debt Crisis that will make 2008 look
like a picnic.
So if you’ve
not taken steps to prepare for the coming Crisis, you NEED To download my FREE
report devoted to showing in painstaking detail how to protect yourself and
your portfolio from the coming ROUND TWO of the Financial Crisis (round one
wiped out $11 TRILLION in wealth).
I call it The
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of information about portfolio protection, which investments to own, which to
avoid, 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.
Good
Investing!
Graham
Summers
PS. We also
offer a FREE Special Report on the inflation situation in the US. This other
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
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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.
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Hmm, won't the Fed just force banks, who are sitting on mountains of free Fed money, to buy treasuries?
Seriously, stop with the pathetic advertising at the bottom of your articles..80% of people now make fund of you in their comments dipshit head!
Seriously, stop with the pathetic advertising at the bottom of your articles..80% of people now make fund of you in their comments dipshit head!
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The Fed doesn't provide net liquidity. For everyone going liquid (liquidation) someone else is going less liquid. Selling a house is an example. When the Fed "provides" liquidity it is reducing the liquidity of everyone else in the world holding FRNs. It is increasing the liquidity of a few favored banks or the Treasury.
That's what theBernank and timmay are hired to do.
They don't give a fuck about anyone else.
Options expire every WEEK on SPY, what's wrong with this guy? He doesn't have a clue, just gets the Adsense check each month from the other stupid people who click-through here.....
http://www.youtube.com/watch?v=eY7ZX6ngOSs
PS, maybe we'll get lucky and that big earthquake that's supposed to rip the US in half materializes during all this. That way we can all have a fighting chance and we'll only have to worry about food and shelter instead of instead of how the fucking DOW did for the day. Wouldn't that be a fresh change. Well except for the nuclear powerplants that get destroyed in the process. According to the scientists map of the new continent, I am going to have ocean front property. When this occurs I think im gonna go put my hard hat on, grab a fith of jack, and go sit in my boat that's underneath the car port. Oh, and ill be sure to undue the latches that hold it to the trailer as well. Sounds like fun.
http://www.rumormillnews.com/cgi-bin/forum.cgi?noframes;read=202591
I love the part about the FEMA responsive. LMFAO that's how stupid the gov't is thinking they could actually respond to such a situation. The real problem would probably be the likes of china and russia seeing our mistakes of the past and on top of all that start launching nukes at our asses.
Beam me up Scotty
test
Pass
Not sure how many of you remember an incident a few years ago when two men were intercepted at the Italian border with a suitcase full of U.S. Treasury Bonds that were issued during the Kennedy years in denominations of $100 to $500 million each, with a total value of about $ 135 Billion. I discovered this excerpt from Benjamin Fulford. Fact or fiction? Not sure.
"....lots of new light was shed on the incident in Chiasso, Italy where two Japanese were illegally detained by Italian customs authorities and had the $134.5 billion worth of bonds they were holding stolen.
According to one of these men, Mitsuyoshi Watanabe, formerly of Merrill Lynch, he was carrying a bunch of Kennedy bonds that were supposed to be cashed in order to finance a tunnel linking South Korea and Japan.
His companion, Akihiko Yamaguchi was carrying bonds given to him by a senior Yakuza. The Yakuza said the bonds were part of a major hoard in Japan. Former US vice-president Dick Cheney recently examined the bonds, pronounced them to be real and took two boxes filled with $500 billion bonds with him. The Yakuza decided that if Cheney said they were real, he would try to cash some of them in Switzerland too.
Instead, the bonds were seized by the Vatican linked P2 Freemason lodge and by the operatives David Sale and Daniele dal Bosco.
The subsequent fight over these bonds revealed the existence of a top secret committee that had illegally seized control over the highest peaks of global finance. That committee is also known as the steering committee of the Bilderberg group. The legitimate and rightful owners of the world’s assets (the people of the planet earth) are now in the process of regaining control over the global financial system.
However, this is easier said than done because we are entering uncharted waters. At the top of the global financial system lies a book of top-secret codes and the controllers of these codes have been able to use them to create trillions of dollars out of thin air and play god.
The code books are now under the control of the White Dragon Society. There was, as we mentioned last week, a fierce 8 minute gun battle involving dozens of men and many types of weaponry as the Khazarians attempted to seize the code books. They were repulsed.
The problem we now face, however, is how to carry out a smooth transition to the new financial system without causing the enormous chaos and suffering that would result if the computers of the global banking system were suddenly shut down. There is also the delicate geopolitical power balance that needs to be handled with extreme care."
Customers Man,
Well, the light that WAS SHED on them about a 2-3weeks after they were caught, said the Bonds were counterfeit.
Reason?.Some dumb ass had printed them with a picture of a picture of the Space shuttle Columbia on the back.
As we all know, it wasn't built in Kennedys day.They were officially declared Forgeries.............
Now, WHO really knows.
Only the Shadow.
Sounds like you got your data from Ben Fulford. It all sounds promising, as did things like Global Settlement Funds, NESARA, "Whistleblower", "Casper", and a host of other sources that promise a bright and shining tomorrow. But it still hasn't happened, has it? As for the bond issue, feel free to peruse more data here:
http://gizadeathstar.com/2011/04/japan-connecting-some-dots-part-one-the-strange-case-of-the-bearer-bonds/
http://gizadeathstar.com/2011/04/japan-connecting-some-dots-part-two-the-japanese-elections-of-2009/
http://gizadeathstar.com/2011/04/japan-connecting-some-dots-part-three-more-anomalies-about-the-bearer-bonds-story/
http://gizadeathstar.com/2011/04/japan-connecting-some-dots-part-four-miscellaneous-anomalies-about-the-bearer-bonds-story/
http://gizadeathstar.com/2011/04/japan-connecting-some-dots-part-six-epilogue-and-concluding-thoughts/
http://gizadeathstar.com/2011/05/news-and-views-from-the-nefarium-may-4-2011/
I think you're referring to an episode of the NBC spy action/comedy "Chuck".
I think you're referring to an episode of the NBC spy action/comedy "Chuck".
I must just be a fukking dumb ass, but in my world, nobody with any sense would be be "investing" in anything other then the "3B's".
Bacon, burgers, and beer????????
Haha
I'm guessing he was thinking bullion, bullets, and booze.
I agree that it's the "sky is falling" articles every three days that belies what are usually great articles vetted by Tyler.........enuf of this crap...
If you want a breath of fresh air from doom n gloom go see "the Big Sky" with KD.
thank you mr summers for a cogent and succinct recap of the present situation and danger.....i love your posts because they are one of the few places (besides george washington, smartknowledgeu, econophile, mr kreiger, et. al.) where truth is still traded openly.....
Nothing is 100% free, nor is your money ever "happily refunded."
I'll take a side of brown eye with that taco please.
Any minute now...........
I might IGNORE this copy-paste article of DOOM which is used purely as a VEHICLE to get people to subscribe to a SERVICE.
I might suspect that this SCAREMONGERING (largely by using other people's material, I suspect) is just to get me to BUY SOMETHING.
I don't disagree with the assessments of the state of world economics, but it really does seem like Snake-Oil to suggest that there's a SOLUTION that I can just DOWNLOAD.
http://www.infowars.com/huge-marine-drill-confirms-ground-invasion-of-libya/
From Matt's money maker................
We do seem to truly be getting our noses into everyones backyard...........I think Owhamamy thinks we have an unlimited amount of Physically capable males / females that will love to die anywhere on the globe as a diversion.
All those Fat , diabetic , obese mickey D kids, seem to die and fight just as well as anyone else when they get 18.Amazing how many are joining to have a job, a piss poor paycheck,and die for ALL that.
Dayummmmmm
Agreed. The article was interesting until the blatant and crap advertising at the bottom.
"The world is ending! Buy our stuff and be saved!"
Bollocks.
###
Aside from this, other countries are rapidly dropping US debt like a hot potato. Russia has sold off 30% of its US Treasury holdings.
###
only idiot like you would believe a word from mr Dvorkovich of Russia.. he's deputy to Russian president..
here's hottest information from tranches..
#1 there's huge capial flight from Russia.. for last 5 months Russian crooks moved $35 bln from Russia, and its offical figures, in reality its probably +100 bln $$
#2 russian annual budget , not chump change, is around 800 bln $, but problem is its balnced only of oil prices are higgher 110$ pb, imagine what is going to happen
if oil prices will drop 25-35%,,current crisis in Europe will be park walk.. we are talking about $150-200 bln budget deficit in Russia..
#3 huge inflation and russian M2
russian M2 increased 25% y/y, why?
http://cbr.ru/eng/statistics/credit_statistics/MS.asp
Russian govement jsut prints frash crisp monies to balance budget... that why there's huge inflation in Russia , offical figure ia 8-9%, unoffical is 15-20%..
#4 and last
if russian cut 30 % off $ holdings, where money went to?
Europe ? Japan ? China? there's no another big debt markets to sustain another 100-150 bln per anum..
anyway, summing up ITS ALL BULSLHIT about Russia cutting $$$ holding.. Russia want to enter WTO, so all those talks about $$ is just a political games
alx
Anyone with half a brain sees we're speeding towards the edge of the Grand Canyon in a short yellow bus...but right until the rear wheels clear over the edge, its all great for bubble equities, valueless fiat currencies, and worthless bonds.
You've been watching... "Thelma and Louise". Or "Duel" ....SP's debut! Wow, some movies.
Well, those new buses are nice and quiet, no one will hear the screams as the whole thing goes over.
Let the selling happen. Better now than later.
Then again it may go all sell anyway. The early seller gets the profit. The rest will burn at the chained exit school doors.
I think that this is a more apt bus analogy.
http://www.youtube.com/watch?v=bJ0I69Q5BpY&playnext=1&list=PLD19B8D6060A...
They know it's a disaster and are running with it.