Phoenix Capital Research's blog

As noted last week, the markets will likely rally into the Fourth of July. Most “analysts” will view this as a sign that the initial drop down from two weeks ago was a fluke and it’s time to “buy the dip.”

All market collapses follow a particular pattern. We're passed #1, into #2... next up is #3.

That is a truly staggering collapse in incomes. The last time we say anything even close to this was in the third quarter of 2008.  

 Anyone who is banking on consumers to continue spending as they have is out of their mind.

The global Central Banks are in damage control mode. The big story here is China, then Japan then the US. But all of them are losing control of the markets.

The markets are beginning what could in fact be an epic meltdown.

The technical damage from yesterday’s bloodbath was severe. I’ve been warning readers of Gains Pains & Capital that we were heading for a serious collapse. Yesterday’s action was just the beginning.

This is just the start. I warned my clients subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.

The Fed has spent TRILLIONS of Dollars and failed to deliver anything resembling economic growth. The number of people who are of working age who are actually working has barely budged since the 2009 low.

The Fed is known to leak key information to insiders, so for certain “someone” will know before the rest of us.

With that in mind, I suggest keeping a close eye on the bond markets. These will be the “tell” of what the Fed is likely to announce.

So let’s see what happens on Wednesday. The markets will likely rally until then on hopes of more juice from Bernanke. But if he should disappoint at all (read: not announce something more or at least strongly hint at doing so) then buckle up.

Bernanke claims the Fed can successfully exit its current strategy. He’s lying. Or he’s adhering too strongly to economics and ignoring human nature.

The markets in the US have entered a mania in which investors look for any and all excuses to push the markets higher.

$1.4 trillion in QE bought a bear market for Japan. Good luck to the rest of the QE crowd.