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Graham Summers’ Weekly Market Forecast (Crisis Edition)
Given their technical set-up and oversold conditions last week, stocks should have staged a bounce of some sorts. Instead, they went into full-scale Crisis mode falling over 7% as the US was downgraded and global debt collapse went into hyperdrive.
This brought the S&P 500 up against the critical support level of 1,200. However, we’ve already taken this line out in the overnight futures sessions. As I write this, the S&P 500 is around 1,172 or so.
The bulls have only one hope to cling to and that is for the Fed to mention QE 3 in its FOMC meeting tomorrow. The Fed will absolutely HAVE to actually mention QE 3 given that its previous hints of additional stimulus resulted in meager, short-lived rallies.
However, the fact remains that the market is on Red Alert mode. The financial system is more leveraged than it was during the Tech Bubble. Mutual funds are more heavily invested in stocks than at any other time in the last 50 years.
And the cause of the 2008 Crisis (derivatives) still hasn’t been reined in.
As I warned a few weeks ago, now is the time to be getting defensive and shifting to cash. We will see some sharp bear market rallies in the near future, but the End Game is now in motion. Even if the Fed does announce QE 3, the effects will be muted.
Consider that in just two weeks the market has wiped out ALL of the gains of the last 9 months and you’ll see what I mean: the Ponzi scheme that is our current financial system requires money constantly for it not to collapse (not correct, but COLLAPSE).
The whole world now knows that QE 1 and QE 2 were failures. Which is why QE 3 won’t do much. Which means the REAL Crisis is now here.
On that note, if you’ve yet to prepare your portfolio for Round Two of the Financial Crisis, you can find actionable investment ideas that will not only protect your portfolio, but help you produce outsized profits in my FREE report, The Financial Crisis “Round Two” Survival Kit.
This report is over 17 pages long and includes detailed analysis of why the First Round of the Financial Crisis happened, why the next round (Round Two) will be even worse than 2008, and which investments can produce triple digit winners when the market crumbles.
This report is 100% FREE. To pick up your copy today simply go to: http://www.gainspainscapital.com and click on the OUR FREE REPORTS tab.
Good Investing!
Graham Summers
PS. We also feature two other reports, one outlining how you can purchase Gold at just $350 per ounce and another featuring two investment ideas that will skyrocket as the world’s paper currencies collapse in an Inflationary Armageddon.
These other two reports How to Buy Gold at $350 and The Inflationary Armageddon are also available at the OUR FREE REPORTS tab on http://www.gainspainscapital.com.
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I don't normally watch CNBC since I have effectively boycotted all media that is blatantly dishonest. However, since today is such an awesome day, I could not help but switch over to the channel just to get some joy out of the panic.
The dishonesty and DESPARATE cheerleading on that channel is beyond words. How do these idiots sleep at night? They are so dishonest and all they want is for the market to "go up"----it is just hilarious.
I cannot wait to see CNBC if the market ever goes to true value-----I would watch it every day just to get joy out of their misery. The sad thing is what they don't get is it is the dishonesty, cheerleading, and propaganda that got us into this mess. Why can't people just be honest? Don't they understand that problems cannot be solved by covering them up?
Anyway, if you want a laugh, switch over to CNBC and look at the desperation. They are carting out everyone saying "buy, buy, buy". Everything negative they find a way to spin positive.
Don't get me started. They sleep at night because they are egomaniacs who think they are rock stars.
When CNBC is taken off the air, you know a new, genuine bull market will be at hand.
Until then, the market needs cheerleaders.
The cheerleaders are paid to cheerlead because it draws eyes and that draws advertising dollars. If they don't cheerlead, they will be replaced.
Occasionally they interview a Bear. Notice how often the more assertive Bears are invited back. Things are what they are because the public wants hopium.
"Laugh and the world laughs with you. When you cry, you cry alone."
I got rid of the cable a few months ago, I was wondering what CNBC was up to today. I would have loved to laugh at them, but then I remember why I got rid of the cable in the first place.
Well, QE3 will bring superstagflation. Silver and gold, silver and gold...
Hey Graham I'd like to do a face-to-face transaction for that $350/oz gold. I'll bring a mill in cash. Okay?
In case you have not read the out-dated FREE reports, GDX is the $350 gold.
There, you never have to read his posts again.
Maybe you need to read Douglas Adams again.
Could be right, maybe it was 56, or even 69(er).
What difference does it make?
If I had a sure-fire way of getting rich, then I would not share it with anyone (maybe except for family and close friends).
But there are those who want all and sundry to "know secrets" about how to win, big time, on horse races, poker, lotto, the stock market, etc..
The "teaser rate" (rather like getting into a house you cannot afford) is an initial "free offer" to suck you in for later paying for 'advice'.
Well if I had a truly "magic potion", I would either keep it to myself, or really give it for free; if that potion was the answer to the universe and everything.
49
That is for free, or at least since I bought and read Douglas Adams.
I've had some experience in this effort; and it is very interesting. Because the actual best thing at the time, for instance, Silver at $4.35/oz. is completely contrarian; no one can hear you. I made a little effort, a little campaign to get three pre-selected persons to listen and let me show them silver charts, etc., at $4.35. No deal. Go Away, don't bother me. you're too far out. If that's true, why isn't it on TV, (my all time favorite response). Because the right answer is always, always, completely off the charts of what people are thinking about; you can tell anybody you want, or everybody; but no one will pay any attention. For real; that's the way it works.
Graham Summers has also called this entire meltdown.....
That's why he went long oil at 110 then in response to emotional geopolitics?
Also, he was stopped out of all his crisis trades, and then closed all his shorts at...wait for it...the top of the market this year - the market played him perfectly.
You'll never find an investor who trades more on emotion than him.
Best to fade him and this advice.
Don't be so hard on Graham... he spends most of his time spamming his subscribers to sell them his "premium" options newsletter. That is why he is unable to take care of his regular customers...
Graham Summers has now called the bottom by telling everyone to go short, so I'm getting long and you all should too.
On target! A lot real live companies are near their 08 lows.
Exactly. The probable outcome is that the DJA will close higher on Friday than it did last Friday. Reading newsletters causes brain damage.