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Kiss The Line and then Good-Bye!
No
investment goes straight down or straight up. This is especially true when an
investment is changing trends from bullish to bearish and breaks below a key
support level.
Instead,
investments follow what I call the “kiss the line then say goodbye” pattern.
That pattern is:
1) The
initial drop
2) The
re-test (kiss)
3) Good-bye!
In plain
terms, this means that once an investment breaks below key support, it usually
rallies to re-test that former support line. If it is rejected at that line
(indicating support is now resistance) then you are in for a sharper
correction.
Which is
exactly what’s happening in stocks today:
As you can
see, the S&P 500 has taken out critical support at 1,300 or so. It’s now
staging a bounce to re-test this line. If it’s rejected here, (meaning former
support is now resistance) then we’re going to see a sharp correction to 1,260
or even 1,200 depending on how bad things get.
So pay close
attention to that line. If the S&P 500 kisses it and doesn’t break back
above… then say GOOD-BYE!
Indeed, I
believe things are about to get REALLY ugly.
The US
economy has taken a sharp turn for the worse in the last three months.
Considering that we never had a recovery to begin with, I believe we’re heading
into a very, VERY rough patch here in the US.
Without
adjustments, the US economy LOST (not gained) over 100,000 jobs in April.
Nearly 30% of all mortgages in the US have negative equity. Food prices are
through the roof. And we’re actively raiding pension funds in order to fund
debt issuance.
In plain
terms, this is an absolute disaster. And as usual, stocks are the last to “get
it.”
Now is the
time to be preparing for what's to come. If you've not already taken steps to
protect yourself and your loved ones' finances from what's coming, I can show
you how.
On that note
if you’re not prepared to profit from the market’s correction, you NEED To
download my FREE report devoted to showing in painstaking detail how to make
SERIOUS money from a stock market collapse.
I call it The
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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
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steps to prepare AND profit from what’s to come. And it’s all 100% FREE.
To pick up
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I wont be caught short on stocks with BEnron at the wheel of this runaway train.... he will print to infinity and that inflates stocks and homes but equally decimates our purchasing power....
Well yes, but there in lies (lies lies and bloody statistics!) the rub.
Stocks go up by 20% and the currency they are denominated in has been gutted by 40%... explain to me how that's a "win" for you as a good strategy?
Or in Graham Summers' case, they kiss the line, he buys and then it tanks.
I know that things may get "ugly' and maybe sooner than later, but most of these posts by Phoenix Capital Research are so doom and gloom. I am taking with a grain of salt anything posted by anyone who is also trying to SELL something!!
would you rather "buy" the free advice the fed offers?
I know that things may get "ugly' and maybe sooner than later, but most of these posts by Phoenix Capital Reserach are so doom and gloom. I am taking with a grain of salt anything posted by anyone who is also trying to SELL something!!
I know that things may get "ugly' and maybe sooner than later, but most of these posts by Phoenix Capital Reserach are so doom and gloom. I am taking with a grain of salt anything posted by anyone who is also trying to SELL something!!
is was what, only 77 years in the making?
long live the glorious FED
not
Meh, if it starts to get too ugly, why can't the fed just buy stocks directly? Their mandate is to keep people's pension portfolio on paper high while they tranfer any real assets over to banks' balance sheets, the game keeps kicking down the road till someone actually stops them (and who can at this stage that isn't vested in the game?)?
Why can't they just print money and buy stocks? If they can use member banks to surpress PMs, why can't they do the oposite with member banks like Junk Precious Metals and Bunch of Aholes to take in free loaned money and keep buying equity to artificially float it ad nauseum?
It's not like any regulating body or commission will prevent them... don't make me cough up milk through my nose, please!
/shrug.
Don't know what the hell to do other than sit on PMs while their "depression-driven paper value" sh1ttanks, but no one can actually get their hands on physical because it's been wisked away to new vaults that the banks have recently commissioned.
Game on.
I started a very simple blog, it's different from others because I actually give you real trading signals, I have also come to the same conclusion as Phoenix. I welcome all comments.
Biff
http://www.raintreeasset.com/
Biff, congratulations on the new blog. I hope it is successful.
The charts you present are not informative, if I may say so, because there are no indicators or explanations given. I am sure you don't want to give away your proprietary system but I would also like more information as to how you reached your conclusions.
I can see there is a bearish engulfing candle on the Weekly but that is hardly a proprietary signal. :D
Also, sell signals are fine but do you have a downside target in mind?
Thanks and best of luck to you!
Except for one thing, I don't know what is going to happen, when it is going to happen, or how it is going to happen.
What I don't know grows exponentially year after year.
There is only one thing that i know for sure: I'm going to have another cookie.
mmmm COOKIE!
We don't know exactly what is going to happen, but we do know that it will be shite. Like watching a video of a lorry jacknifing on a busy main road - if you pause the video as the lorry starts to jacknife, the precise details of the resulting accident may not be predictable but it's certain that the results will be "sub-optimal".
Looks to me that ES shorts are squaring up book, and looking to short again from higher levels after/ during Unca Ben's infomercial.
1290 looks like key level. Helicopter Ben needs to see if market can maintain on its own steam (not!). If / when ES plummets then PMs and soft comms go down with it.
Come August - with ES @ 1200 (or below) Ben gets in his helicopter again, with his Eva Peron mask on, and effects QE3 or whatever Eva would call it.
That's the way it appears.
4X is trading sideways...waiting. It's always eerie in the middle of the US day when nothing is moving and there is a swath of tepid anticipation in the air.
It could be a Duzy either way.
A whine too far ... for a wine too fair... to be drunk without a plate of cheese.
It helps to make the dump less unpleasant for those who were hoping the hump would bulge on into dire erection...what a hard landing for a market that may go flaccid. We should all be posting our wieners to our friends to show them what it felt/looked like before the melt down occurred. But then we are not all senators...with a wiener fan club.
A Line Too Far......
It is always short term thinking that leads to long term problems.
My reference point...mankind.
August is when the assets bubbles start to burst...on both sides of the pond...this in spite of risk of USA falling into QE-3...if that is possible with China breathing down its neck in the ongoing currency war!
Bullish, today at least.