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Graham Summers’ Weekly Market Forecast (Performance Gaming Edition)
The market rally that began on Friday and continues today is largely based on end of the month performance gaming. Normal market action doesn’t involve every asset under the sun rallying together. And given that the Fed didn’t announce QE 3 (and despite many claims to the contrary, didn’t telegraph it either), there was no reason for stocks to explode higher on Friday.
Regardless of the reasons for the move, stocks are now coming up against resistance at 1,200 on the S&P 500:
What happens here will go a long ways towards explaining what’s to come. It’s worth noting that the credit markets have shown no indication of bullishness (nor of QE 3 coming for that matter).
Similarly, Gold has the makings of a Head and Shoulders top:
This pattern, if confirmed, will see Gold at $1,600 in short order. Given how overstretched the precious metal had become, this is quite possible.
On a final note, the Euro could be in the final stages of intervention/ bailouts. On September 8, a German court will be ruling whether it is constitutional for Germany to participate in EU bailouts. Consider that 6% of Germans feel the Euro has brought economic disadvantages and that the German elections are scheduled for just a few weeks later, and we could very well see the court rule to end Germany’s participation in the bailouts.
Which would mean Game. Set. Match. for the Euro and the EU in its current form. Indeed, judging from the credit markets and the ongoing liquidity Crisis in Europe,
I fully believe we could see another catastrophic Crash similar to 2008 in the coming months.
The similarities between this environment and 2008 are striking. We have a major bank on the brink of collapse (Bank of America). The credit markets are in major disarray. Liquidity is drying up. And so on.
Many people are going to see their portfolios get completely destroyed.
But you don’t have to be one of them. Indeed, 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).
Best of all, 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 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.
And ALL of this is available for FREE under the OUR FREE REPORTS tab at: http://www.gainspainscapital.com.
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That's what i like to read Mr Summers, optimism! ...you're my regular fix of sunshine
...well you and that goon Bernanke, only he's getting a bit depressed of late, like something of about $4 Trillion in size is weighing on his tiny mind like it hasn't worked. Mmm?
Will they lose everything?!
Worth less than a beer and sauerkraut fart.
From now on I am going to start reading each ZH article by first scrolling to the end to see if there is some form of a pitch.
If yes, then it is sent to /dev/null .
China broadened the base of reserves it requires commercial lenders to deposit with the central bank to control liquidity and limit inflation, economists said.
Reserve requirements are being extended to customers’ margin deposits, a move that may drain 900 billion yuan ($140 billion) from the banking system over six months, Bank of America Merrill Lynch economist Lu Ting said in an e-mailed note on Aug. 26. Mizuho Securities Asia Ltd. cited similar information. A central bank press official declined to comment.
China has already raised reserve ratios to a record 21.5 percent for the biggest banks to counter the fastest inflation since 2008. London-based Capital Economics Ltd. said that the reported move may mean no further increases this year, after previously anticipating another 1 percentage point gain by the end of December.
http://www.bloomberg.com/news/2011-08-28/china-may-limit-inflation-with-...
Gold may be at 1600 some day (which I doubt) but if you have an ounce today you'll still have an ounce tomorrow. Besides, there will be more money printing. You can take that to the bank.
Exactly.
I started buying Gold at US$800 per ounce.
If Gold goes down to US$1600, which is highly improbable, in my opinion. I'll simply buy some more. Especially if the Euro goes under, you will see a rush to Gold like you have never seen before.
Most Europeans know -- based on their grandparent's WWII experience -- that Gold is the ONLY thing that survives a crisis of this magnitude. Most of them have already been buying Gold like there is no tomorrow. Expect an even bigger rush if the Eurozone blows up.
Oh, and the graphics that Summers is publishing is GLD. In other words: paper Gold.
That, right here, tells you everything you need to know about the guy...
OOhhhh..."6% of Germans feel the Euro has brought economic disadvantages". Like that's gonna matter. Has to be a typo.
Long Gramam (ie SPAM).
Short Gold.
LET ME GUESS. GRAHAM SUMMERS IS GOING TO RECOMMEND GOLD?? SHOCKER!!!! I AM QUITE SURPRISE AT THIS!!! HAHAHA. WHAT A JOKE. DID HE TELL YOU A CLOSE ABOVE 1200 EOM BREAKS THE DOWNTREND STATUS? OF COURSE NOT.
"Within its nine pages I explain precisely how the Second Round of the Crisis will unfold" LOL. Spammer.