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Graham Summers' Weekly Market Review

Phoenix Capital Research's picture




 

The markets are in a perilous condition today.

We’ve been noting for months that the markets were displaying signs of a top. Among other items, we recently noted:

1)   Margin debt (when investors borrow money to buy stocks) has hit new all time highs.

2)   The number of bearish investors has hit an all time low.

3)   Market leaders have peaked or are peaking.

4)   Market breadth (the number of stocks that are rallying) is falling.

5)   Earnings are falling at key economic bellweathers.

6)   Stocks have diverged dramatically from earnings and revenues.

Of course, market tops always take longer than one expects. The weakness of the S&P 500 over the last few weeks isn’t too promising.

A break below this line would open the door to a more serious correction, possibly to 1,700.

The key item to note would be if the market does correct in a big way while the Fed was engaged in its $85 billion per month QE plan. We’ve never had a correction greater than 5% since the Fed announced QE 3 and QE 4. A 5% correction from the most recent peak would bring us to 1,710.

That would be the key line to watch. I’ve drawn it in the chart below.

Is the market topping? It’s too early to tell. But for certain we are in a bubble. It’s just a question of when it bursts.

For a FREE Special Report on how to beat the market both during bull market and bear market runs, visit us at:

 

http://phoenixcapitalmarketing.com/special-reports.html

 

Best Regards

 

Phoenix Capital Research

 

 

 

 

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Fri, 12/13/2013 - 06:41 | 4242802 BlackVoid
BlackVoid's picture

The FED can print unlimited money and buy unlimited stocks. This can go much higher.

It can also crash, yes, but Phoenix is expecting that not form months but years.

Fri, 12/13/2013 - 11:35 | 4243352 Max Damage
Max Damage's picture

True, they can. But they can't stop the consequences of those actions though

Fri, 12/13/2013 - 02:45 | 4242630 ebworthen
ebworthen's picture

S&P 666!  C'mon!  Let's get to true valuation already!

10 Year Treasury at 6% where it should be!

Kill the TBTF banks!

End the FED!

Fri, 12/13/2013 - 01:06 | 4242494 frankTHE COIN
frankTHE COIN's picture

Phoenix Capital is worth the subscription. Give it a try, you wot be disappointed.

Fri, 12/13/2013 - 00:57 | 4242468 MGA_1
MGA_1's picture

Hahaahahaa... He's still writing this junk.. hahahaha...

Thu, 12/12/2013 - 23:22 | 4242198 Vint Slugs
Vint Slugs's picture

Who reads Phoenix Capital?  I don't but here's another S&P technical view:

 

http://eideticresearch.com/uploads/2/8/3/4/2834543/djia_-_sp_analog_december_12_2013.pdf

Thu, 12/12/2013 - 22:47 | 4242079 mogul rider
mogul rider's picture

methunk da crisssis is uver

Thu, 12/12/2013 - 21:51 | 4241905 lordbyroniv
lordbyroniv's picture

BITCOINZ !111111111,,,,,,,,,,,,,,,,bitchez !111111

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