Graham Summers Weekly Market Forecast (the End Game Approaches Edition)

Phoenix Capital Research's picture

Stocks have
started to break down in a big way again. It looks as though we’ve entered a
wide trading range on the S&P 500:

 

 

If we don’t
bounce hard at 1,300, we’re going to 1,250 in short order. The $1 million
question on everyone’s mind is whether this is just a correction or the start
of another Crisis.

 

The US
Dollar is indicating it could very well be the latter:

 

 

As you can
see, the US Dollar looks to have just
broken out of a falling wedge pattern. The ultimate target for this breakout,
if confirmed, is over 84. The only thing that could instigate that kind of move
would be a full-scale Crisis (the last two significant US Dollar rallies were
due to the 2008 Crash and 2010 Euro Crisis, respectively).

 

If this
happens it will be the Eurozone that starts it. The debt problems over there
have no spread to Italy, a country far too large for the EBC to bail out. And
with the European banking system being just as, if not even more saturated with
toxic debt as the US’s, we could see a systemic collapse over there from just
about anywhere: Portugal could take
down Spain which could in turn take down Germany, etc.

 

Indeed, the
Euro is hanging on for dear life at 140. A break below this level would
indicate we are at the beginning of a serious breakdown in the Eurozone. That
would be the trigger to watch for the beginning of REAL trouble.

 

 

However, one
thing is clear: we are fast approaching the REAL Crisis.  And there’s no shortage of Black Swans
to hit either. The Euro problem isn't going away. In fact, it's now spread from
Greece to Italy and Portugal... the latter county now being officially rated as
"junk."

 

Meanwhile,
China is experiencing a liquidity Crisis on par with the Lehman-collapse. In
fact, a recent bond auction there failed to sell EVEN HALF of the bonds offered
(there's not enough capital available).

 

And then of
course there's the US where we have only two weeks to deal with the debt
ceiling before we begin a default.

 

The next
Crisis is literally at our doorstep. And it’s going to kick off another 2008
episode as all the over-leveraged players (read: EVERYONE) will have to sell
positions to meet margin/ redemption calls. However, this time around we’ll
also see civil unrest as people lose their social safety nets (unemployment,
social security, etc).

 

On that
note, if you’ve yet to prepare for these issues, you can 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
Financial Crisis “Round Two” Survival Kit
.
And its 17 pages contain a
wealth 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
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
your copy today, go to http://www.gainspainscapital.com
and click on FREE REPORTS.