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Graham Summers’ Weekly Market Forecast (Crisis Mode Edition)
Looks like the end of the quarter performance gaming is over. Indeed, the market got rejected in a big way at resistance (1,175 on the S&P 500). It then rolled over sharply and is now sitting on the trendline that has supported the last three minor bottoms.
We may get a brief bounce here due to beginning of the quarter (and month) buying, but unless that bounce is substantial we’re breaking the trendline soon and on our way to new lows.
Indeed, the big picture take shows us in a clear bearish flag formation targets 1,000 on the S&P 500:
I suggested to get defensive weeks ago. I urge you to be even more defensive now. Use rallies to lower exposure to stocks to the longside and to establish some shorts. I would also be heavily exposed to cash as the US Dollar rally I forecast last month looks ready to go into hyperdrive:
As you can see, the massive wedge formation has been broken in a BIG way. We’ve now taken out major resistance at 78 which sets the stage for a move to the mid 80s.
This move could easily be accompanied by greater weakness in Gold. I warned in August that Gold was succeptible to a sharp sell off. We’ve seen had that correction and the precious metal has fallen to test its 34-week exponential moving average.
This situation needs to be watched carefully. Gold has only broken below the 34-week exponential moving average in a big way ONCE in the last ten years: during the 2008 Crash. If Gold breaks below again, WATCH OUT!
Indeed, we recently got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.
It's just triggered again... which means that last week’s sell off is JUST the beginning of what's coming.
Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.
If you have yet to prepare yourself for what’s coming, my Surviving a Crisis Four Times Worse Than 2008 report can show you how to turn the unfolding disaster into a time of gains and profits for any investor.
Within its nine pages I explain precisely how the Second Round of the Crisis will unfold, where it will hit hardest, and the best means of profiting from it (the very investments my clients used to make triple digit returns in 2008).
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Good Investing!
Graham Summers
PS. We also feature four 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 my proprietary Crash Indicator which has caught every crash in the last 25 years or the best most profitable strategy for individual investors looking to profit from the upcoming US Debt Default, my reports covers it.
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Now that is interesting. DJIA today closed at 10654. Now, if I look at this Feb 6th 2011 chart with a magnifying glass, it says 10400 in the beginning of October ( vertically middle between 09 and 11 2011). That is a 0,25% mistake after 8 months into prediction. And this chart is even more important then silver and gold as it tells what will happen with economy. Click on the graph in the link, then click on zoom in the left upper corner-You will be able to see price marks:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&start=0#p30485
One more chart starts to move in place.
Four times worse than 2008?!? Holy shite. Does that mean the S&P500 goes negative?
yeah yeah yeah...sell them damn subscriptions eh?!
I guess 'nothings still happening'?
graham's leprechaun's hard at chartology work since they ran out of $350/oz gold........i can't believe you believe in leprechaun's ouch!
401(k)'s are now 200.5(k)'s they have lost so much money, at least 50%.
And just think, the big attack on the 401K/Pension Bathrobe brigades holdings hasnt even gotten rolling yet.
This move could easily be accompanied by greater weakness in Gold. I warned in August that Gold was succeptible to a sharp sell off. We’ve seen had that correction and the precious metal has fallen to test its 34-week exponential moving average.
Or, we could see a DECOUPLING, if the sheeple had ANY brains.
The 'sheeple' may not have brains but they have a lot of dept a no money to buy gold.
Those who have money and brains should step out of the way, let things crash as hard as possible and then buy the hell out of them.
Don't you think that's smarter ?
We can see it, today anyways! USD and Gold/Silver are up! If this holds then...good bye SP!
It would be cool if we could Red or green the article and not just the comments...This guy would be red every time.
"It's just triggered again... which means that last week’s sell off is JUST the beginning of what's coming."
He has used this quote in the last 20 articles, but nothing ever happens. This would be funny if it wasn't so mind-numbing...
If your watching, it draws closer day by day...
My human gets me blues
ok chicken little - so when, exactly, is the sky gonna fall down?
Day by day.
I love it when they produce actual numbers; like S&P500 @1000; then we can come back and laught at him later. Meanwhile, they never apologize for the damage they do convincing the sheeple to participate in the last stages of public capitulation in the market; when, of course, rallies occur. It never changes. Never. It's been this way for 80 years; those who can do; those who cannot, write newsletters. And what do they write? the prevailing public opinion, of course; if not how could they be popular. But we know, the only way to succeed is to be a contrarian and trade against the popular mind. So, there it is.
'Its been this way for 80 years'...lol youre an idiot...IQ officially reset to IQ 80, troll.
Soon, REALLY SOON. I forcasted it months ago. I also foretold the market crash of 2008, 1987, 1937, 1929, The Panic of 1908, the Plague of 1376, The Crucifixion of Christ in 0033, the fall of Athens, etc.
No, Really, I have a proprietary model, and have been calling it all along. NO ONE, I MEAN NO ONE, called the crash of 2008 like me. NOBODY is calling for US Dollar strength now (i.e., EURO Weakness). No one thinks the market is going to crash, bonds will be good before they become bad, Gold and Silver will experience weakness as people that know price, not value, sell -- LIKE THEY ALWAYS DO after chasing price up.
The reason why I hawk free reports so that you can pay for my 'proprietary' reports is because I want to 'help the less fortunate or those incapable of changing their own drool cups".
Afterall, only an evil person, who had a super secret model that sees all would keep it under wraps and keep all of the profits to himself
Go long then, dont just talk about it.