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Graham Summers Weekly Market Forecast (Europe on the Verge Edition)
Things are once again deteriorating in Europe at a rapid pace. The ten-year Italian bond is right back to where it was before LTRO 2 (just one month ago).
This is the end result of central bank intervention in the markets: the impact of each new intervention diminishes as the markets become ever more reliant on more stimulus/ intervention.
With that in mind, European financials are once again flashing danger signals:
When we take this line out, the next round of the European banking crisis will have begun. Speaking of which, both Italy and Spain’s markets are on the verge of a breakdown:
Watch those lines, when we take them out the next collapse is here.
In the US, the S&P 500 continues to cling tenaciously to the 1,400 level based largely on overblown earnings expectations (take out Apple’s results and the picture is not especially pretty) as well as the fact that investors ironically tend to get more bullish as stocks rise. And we’ve just staged on heck of a rise.
On that note, we’re forming a very dangerous looking rising bearish wedge:
If we break the lower trendline here we’re going down hard.
For more market insights and commentary, swing by www.gainspainscapital.com where we offer daily market commentary as well as several FREE Special Reports availabel for download. Among the topics we cover are: the Second Round of the Financial Crisis, the Threat of Inflation to the Markets (and how to profit from it), The Coming US Debt Default, and more. All of these are available for FREE download at www.gainspainscapital.com under the "Free Special Reports" tab.
Best Regards,
Graham Summers
Chief Market Strategist
Phoenix Capital Research
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"In 2011, Private Wealth Advisory’s model portfolio returned 9% vs. the S&P 500’s return of 0%. As of yesterday, we’ve now locked in 42 straight winning trades and haven’t closed single losing trade since July 2011."
Whop-de-do Graham. Hell, I can boast that. Scalp much? Show us the ACTUAL trade logs and maybe we'd be impressed.
42 and 0 means you are overdue for a nasty loser. That July of '11 trade; was it a dozy?
The Federal Reserve, with QE1, makes the credit crisis twice as bad by postponing the economic crash. With QE2, the problem becomes four times worse. With Operation Twist, our credit crisis is now eight times as bad.
IT IS IMPOSSIBLE !!!!!!!!!!!! for the Fed to unwind their electronic printing without the US economy experiencing the economic crash we should have had in 2008, but now, eight times worse.
If the Fed delays the crash again, with QE3, the eventual economic crash will be 16 times as bad. The Fed is killing us by monetizing the debt, which Bernanke told Congress he would NOT do.
Viagra still on full blast for the SPX
Spain's fucked. shame I have property there. Thankfully Bought before huge rises in 2000's so still profit (not for investment anyway)
Of course we all know the level of the S&P is based on solid data and fiscal prudence. Enjoy your hopium.
How many more YEARS is Graham going to shout "The Sky is Falling!"? He has missed the biggest rally in history and now tries to say that a "top" is coming? Sign up for my new advisory service http://www.pumpmynewsletter.com for INSTANT wealth and happiness!
You are exactly right. Anyone who has acted on Grahans info has lost money. It doesn't take a genius to know a disaster is coming, but timing is everything, and Graham does not have it.
You read my mind...except I was going to write: "Is the sky still falling Graham?"
It's not that I think the global ponzi is great and can go on forever, but Graham is a broken clock who hasn't been right once yet...
Mr. Summers, what was your market prediction for the 1st quarter this year? Should we be interested in your predictions in the 2nd quarter?
Nice Charts Graham - everyone on support-BUY EM!!!!!!!
market is up 77, Oil up $2 today!
Who gives a fuck about reality? Rally on, bitches!