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Can We Retake the Trendline?
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.”
However this move was to be expected based on technical formations alone. As I noted last week,
This move could take us as high as 1,625. However, if the market fails to reclaim its trendline we’re going down as far as 1,500 in short notice. And if we take out that level we’re in BIG TROUBLE.
Watch the below line. If we can’t get above it, we’re going DOWN fast.
There’s no shortage of reasons…
For starters, Japan’s economy is imploding, despite a record QE in place: domestic car sales plunged 15% from the year before. So much for the view that the economy was improving courtesy of Japan announcing its NINTH QE effort equal to over 20% of its GDP.
In Europe, the powers that be have decided to make what happened in Cyprus (steal people’s money to fund a bailout) the template for all banking crises going forward. Anyone with an iota of common sense knows is going to lead to banking runs… which in a banking system with leverage at 26-to-1 is that last thing Europe needs.
And then there’s the US where GDP growth was revised SHARPLY lower due to a drop in consumer spending. Consumer spending accounts for 70% of GDP in the US. Guess how this will play out going forward?
If you have not taken steps to prepare for a market collapse, we have a FREE Special Report that outlines how to prepare your portfolio. To pick up a copy, swing by:
http://gainspainscapital.com/protect-your-portfolio/
Best Regards
Graham Summers
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How do you prepare for a market collapse? Learn to drink heavily?
S&P500 Hourly - notice the pump in the morning / dump in the afternoon trend?
http://bullandbearmash.com/chart/sp500-hourly-closes-tanks-final-hour/
Need a day close above 1650 to consider a revisit to the "old trendline"
BTFB, LMFB, BTCZ
Without fundamentals, how does this ship stay afloat...fake money baaaabbbyyyy! I haven't a clue as to where we end up, but it seems to me, we either hit a sandbar or sink in deep waters. Deflation or inflation, you make the call; seems everyone has a different angle on it. To me it seems deep water inflationary spiral, but that will only happen if the banks release the Craken, and with all the clever tricks they have, even they don't know what lies ahead. Ahoy, land ho, or is it an iceburg, a mirage perhaps?
From touching my junk, to eavesdropping, I've had it up to my eyeballs with these tyrannical creeps.
They have endagered my family, your family and everyone on the planet with their free spending, this has to end and soon.
Triple inverse short the rip.
Actually technically speaking it could get above 1625. And it may even break the line and reverse if it's only above for a day or so. Hard telling.
Like about 1640. LOL They will burn the largerst bet. The market is officially broken.
BTFD leveraged
BTFD