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We’ve Finished #1, We’ve Moving Into #2, Next Up is #3
I wanted to post an update on the market action.
The markets have been stretched quite hard to the downside. Having just finished their best first quarter performance in over 10 years, stocks were primed for a correction of sorts.
That is precisely what we got. Last week stocks posted their worst week of the year so far, despite verbal interventions from both the Fed and the ECB. However, the markets became overstretched to the downside in the process.
Remember, the real European collapse will occur when the political landscape changes in Europe: when supporting the bailout madness becomes unpalatable for EU leaders due to its political consequences in their home countries.
With that in mind, it is likely we'll see the markets hold up for the next week or so as all eyes will be on the French elections.
Currently Francoise Hollande, a hard-core socialist, is the frontrunner to win the second round of elections (assuming he and Sarkozy receive enough votes for there to be a second round).
If Hollande wins, then the REAL European collapse will begin. The only thing that could speed this process up would be if the bond markets implode in Spain or Italy before mid-May.
IF that happens then the markets have switched in sentiment from relying on intervention into full-scale panic mode and we are heading into another 2008-style nightmare.
This week is options expiration. Between that and the French elections, the markets should hold up for the next week or so. After that, things could become very VERY ugly very fast.
Remember, all collapses follow the same pattern:
1) the initial drop
2) the re-test/ attempt to reclaim upwards momentum
3) the roll-over/ REAL fireworks
The most money is made during #3. Right now we've just finished #1 and are moving into #2. When #3 hits (likely after the French elections), is when the REAL Fireworks will begin (assuming Spain’s collapse allows things to hold up that long).
So if you’re not already taking steps to prepare for the coming collapse, you need to do so now. I recently published a report showing investors how to prepare for this. It’s called How to Play the Collapse of the European Banking System and it explains exactly how the coming Crisis will unfold as well as which investment (both direct and backdoor) you can make to profit from it.
This report is 100% FREE. You can pick up a copy today at: http://www.gainspainscapital.com
Good Investing!
Graham Summers
PS. We also feature numerous other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s a US Debt Default, runaway inflation, or even food shortages and bank holidays, our reports cover how to get through these situations safely and profitably.
And ALL of this is available for FREE under the OUR FREE REPORTS tab at: http://www.gainspainscapital.com
Best Regards,
Graham Summers
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Let's get this right Mr Summers
Germany is getting tough and 'looking' for the exit while Merkal "talks tough" to please the electorate
but behind the curtain didn't the Germans just give the green light to the ECB printing €Trillions to bailout the entire Eurozone, Govts and banks, including the likes of Deutsche Bank et al??
Let's be crystal clear the ECB has no authority and could not have printed the hell out of the Euro without explicit agreement from the Germans. Correct?
and that's as recently as the past fornight ...so you think this wil become undone in the next 2 months??
The Germans aren't being tough, they've just taken the uber-soft option (a political speciality) and kicked the can ..and they'll do it in May and June too
Yes or no Graham old chum?
Francoise Hollande? Who is she?
A close relation of Nero's wife Sporus.
CW
I think they will keep this charade going until after the presidential elections then look out below.
But I dont see the sense that makes, if they wanted to they could just have big economic national emergency all around right now, declare Obama stays for however long as emergency permanent president, and who would say or do anything about it? It makes NO SENSE to me, this idea theyre desperately keeping the wheels on, till after an election, THEN the wheels fly off. WHY?
Mr. Summers will be right one of the days. But, for for now, it is risk-on and don't fight the will of central bankers and politicians from around the world will and determination to maintain the status quo by PRINT, PRINT, and PRINT!
Graham Summers buy some phyz gold, not that GLD paper stuff. Then go take a Xanax or two. In combination they will make you feel a bit better.
Europe went to war in 1914 over much less and dragged the rest of us into it. Prepare accordingly.
i can't see any disagreements between Euro nations that would kick off a war.. the only war will be civil, public sector workers versus the Govt (perverse eh?)
that's ignoring the real battle of public sector against private for increasing amounts of their money
Graham - Today LaGarde and the IMF is warning all nations that if they do not contribute another $800 billion to the Bailout Fund...then there will be blood.
What is the probability you attach to that funding (blackmailing) event occurring? This would appear to be at Stage 2.5 in your analysis above.
Lagarde works for Pax Americana; if she says there will be blood its not for Europe its for Rome, for Pax Americana, for the banks and the Oligarchs. Ultimately it all comes back to where the string pulling is done. Don't chase shadows, look for the real stuff.
Ol Grahm might be right this time.
Chicken Little at least had a book written about him! Graham...not so much.
Zzzzzzzzzzzzzzzzzzzzzzzzero credibility with this nonsense anymore. Crying wolf is a bit tiring when you've been doing it continuously during a 30% bull run. And for the record, I'm as bearish as they come but not during a US election year. They will do QE3 and call it something obscure like LTROLOLLMAO....or P.R.I.N.T...Preventing Rehypothecation Implosion Next Tuesday. One day you'll be right, but it won't be before November.
The US government and Fed may try, again, to spend and print their way out of the recession to come. However, it will not work. Gasoline and food prices through the roof will be the result. ECRI predicts a recession shortly, and I concur.
I'm with ya... this is not the end of the FED playbook.
Just like the little Japanese Energizer Bunny has been banging his little drum on a dead battery for a long, long time
Yea but Japan is a little tiny island nation, and didnt have a reserve currency.
Japan did not have reserve currency
more US prints, more oil rises
Theres always a reason stocks simply cant go down, from an entire election year to options expiration week...for one reason or another stocks cant go down until they do and no one ever sees that coming when it does happen.
I hear this election fairy tale all the time. What happened in 08/09?
2008 was a necessity for the new regime to be able to justify the printing and mass wealth transfer to the banksters. Now, any printing is seen as "preventitive" because Dimon forbid we should ever let the market correct itself and start over, sending all of those baby boomer 401ks into the toilet. That would be way too noisy. People would rebel. The dollar needs to die slowly and inflation through all of the other complex financial engineering QEs and LTROs is how it will happen...and no one will be the wiser, until they're saying "when did bread start costing $7.50 a loaf. Rolling over those SPY puts gets expensive after a while.
Fed was sleeping on the job last time around, they're going nuclear early this time around
Hell, people are still waiting for Greece to do a full on default...Boring.
However, the Greek economy is in a depression.
Bah, fuck the peasants....as long as a few central banking elites are still doing OK, thats all that matters.