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A Major Bell is Ringing… But Investors Are Deaf to Its Warning

Phoenix Capital Research's picture




 

They say that they don’t rung a bell at the top.

 

This is incorrect. Tops are almost always marked by clear warnings signs, both from a fundamental and technical analysis standpoint.

 

On that note… we need to point out that the Russell 2000 has lead the S&P 500 to the upside since market began its strong rally at the beginning of 2013:

 

 

This is totally normal. The Russell 2000 usually leads the S&P 500 during periods of “risk on.” But this process also works in reverse with the Russell 2000 usually peaking before the S&P 500 when a major top is formed.

 

Take note, the Russell 2000 has formed a double top:

 

 

Not only has it formed a double top, but it is not diverging sharply to the downside form the S&P 500:

 

 

This is a major warning sign that this latest bounce from the October lows is not to be trusted. The Russell 2000 is a full 9% lower than the S&P 500. If the Russell 2000 doesn’t go absolutely vertical soon, then we are getting a major BELL ringing.

 

Take note and prepare.

 

If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.

 

You can pick up a FREE copy at:

http://www.phoenixcapitalmarketing.com/roundtwo.html

 

Best Regards

Phoenix Capital Research

 

 

 

 

 

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Thu, 11/20/2014 - 23:33 | 5472447 nostromo17
nostromo17's picture

THe old double top. I hope your weegie board is right.

I like to throw coins and consult the I CHing myself.

Charts. The assertion that visual patterns with underlying numbers mean more than they mean.

The only mean what happened not what will.

Hate this chart shit.

When will everyone that fucks with money stop pretending they can tell the future?

Pathetic bunch of compulsive gamblers rationalizing away.

Thu, 11/20/2014 - 20:48 | 5471779 Professorlocknload
Professorlocknload's picture

Does Gramma Yellen know about this "Bell" ringing?

Thu, 11/20/2014 - 22:16 | 5472156 KnuckleDragger-X
KnuckleDragger-X's picture

Nobody is sure what she believes......

Thu, 11/20/2014 - 20:01 | 5471667 Bighorn_100b
Bighorn_100b's picture

Why do your views differ so much from
Wednesday Report...The Jaws Of Life.. - by Rambus Chartology , Nov 20 2014 2:48PM
Read on Kitco News.

BTW, I am in your camp of way of thinking. I believe miners have bottomed or so close to a bottom it doesn't matter anymore. Holding for the long haul.

Thu, 11/20/2014 - 19:40 | 5471604 AdvancingTime
AdvancingTime's picture

Many of us the are far from optimistic. While the future is hard to predict, as in politics the people who watch and study the economy are becoming more polarized as to the direction of the economy. Many of us are slipping into one of the two distinct camps, one that sees this as an economy slowly on the mend with the worse behind us and the other who clearly takes the position that things are not working.

Not only have things gotten worse but the distorted economy and manipulated markets only mask the fact that a day of reckoning is fast approaching and we are facing a bigger and meaner economic set back then any the world has witnessed in modern times. More on this subject in the article below.

http://brucewilds.blogspot.com/2013/08/after-big-crash.html

Thu, 11/20/2014 - 18:33 | 5471375 PrefabSprout
PrefabSprout's picture

Way too many typos, please take a little time to proof-read so that I don't have to strain to decipher what you meant.

Thu, 11/20/2014 - 18:03 | 5471277 lasvegaspersona
lasvegaspersona's picture

stock markets don't go down, at least not nationally (to paraphrase Benny Bernacke)

Thu, 11/20/2014 - 16:50 | 5470977 screw face
screw face's picture

hedge accordingly

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