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Buckle Up: Profits Are Falling, the Fed is Cornered, and the Uptrend Has Been Broken.
The stock market is rapidly running out of props.
First off, corporate sales and profits are rolling over. As Charlie Bilello recently noted, we’ve had two straight quarters of Year over Years drops in corporate revenues.

Moreover, corporate profits are also falling at a pace usually associated with recessions:
Profit growth for the S&P 500 companies is at its weakest point since 2009. That’s because, in fact, there isn’t any profit growth.
S&P 500 earnings for the first half of the year are expected to show a 0.7% contraction compared to a year ago, according to numbers from FactSet research. Growth in the first quarter was a meager 1.1%, but the second quarter is more than offsetting that, expected to contract at a 2.2% rate, FactSet estimates. The last time the S&P 500 saw a year-over-year decline for the first half of a year was 2009, when earnings positively cratered at the depths of the global recession, down 30.9%.
Source: Wall Street Journal
With the fundamentals no longer supporting a stock rally, this leaves the Fed and momentum as the sole providers of support for stocks.
Regarding the Fed, it failed to raise rates for the umpteenth time last week. Despite this, stocks actually FELL on the news.

One by one the various Fed doves are throwing in the towel. Sure, they might refuse to hike rates right now, but we’re a long ways from when Bernanke said that QE was a success because stocks were rallying. The Fed realizes that it is in the political crosshairs because QE has exacerbated wealth inequality.
Fed President Fred Bullard even chastised Jim Cramer for being a perma-bull this morning. This is the same individual who desperately claimed the Fed should hold off ending QE back in October 2014 to prop the stock market up (mind you, he wasn’t even a voting member of the Fed at that time, so this was nothing more than verbal intervention).
In simple terms, the current political climate will not permit the Fed to ease any more unless we enter a full-scale market meltdown. At best there will be verbal interventions, but the Fed is out of the stock juicing business for now.
This leaves the market’s momentum/trend as the sole remaining prop for stocks. Unfortunately both have been broken.

Sure, the markets may bounce here and there (stocks posted eight moves of 16% or greater when the Tech Bubble burst) but we are officially in a very negative environment for stocks. Smart investors should prepare for a bear market and possibly even a Crisis.
If you've yet to take action to prepare for this, we offer a FREE investment report called the Financial Crisis "Round Two" Survival Guide that outlines simple, easy to follow strategies you can use to not only protect your portfolio from it, but actually produce profits.
We made 1,000 copies available for FREE the general public.
As we write this, there are less than 10 left.
To pick up yours…
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
Our FREE daily e-letter: http://gainspainscapital.com/
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Phoenix Capital - please leave; you are a CURSE on ZH. Please go somewhere else; maybe join the Clinton Foundation or something.
"but the Fed is out of the stock juicing business for now." - Phoenix Capital
Guess they can't read a chart or stop viewing with 20 minutes of trading left; these people are shills!
Why does anyone believe anything Bullard says? Guys like him are there in order to lie to and mislead the drones out there.
I'm investing in word working tools and farming equipment, along with lead and some PM's screw stocks
8 years worth of artificially low interest rates spurred not only the stock market ripping higher, but more importantly, resulted in the misallocation of massive amounts of capital due to inability to quantifiy risk. Eventually the piper will need to be paid and it will be painful as the US and rest of the world head into another recession/depression amidst the spector of massive defaults and central bank with a credibility problem. Had the Fed done nothing in 2008 and allowed the junk to be wiped out of the system, the markets would be much healthier today, likely 1200 to 1300 with no junk hanging overhead and clear skies.
the only real question is at what level does the fed step in and start buying. everything else is irrelevant.
On the S&P the new norm is 1940; if it get s below that, then by the end of the day on Friday it will magically reappear.
...
If you want to see the greatest driver of income disparity, look at ignorance.This why education and media are working so hard to keep people ignorant. And investors are the worst as ignorance is the butter on their bread. Weak minded sheep always looking for the easy money are lined up for the shearing and the financial industry and its enabling "investors"would have it no other way.
WooHoo, Graham! Your broken clock is about to be right again! It only took 6 years!
Had to use the WSJ to get the info; even they tell the truth once in a while.
More of big mouth Bullard and his Bullshit.I'm sick and tired of hearing endless dribble from all of these Fed basturds.It's gotten to the point of being endless crap from a gang of nitwits that everybody is -well- FEDUP with.As far as Bullard goes,they should dump that F'n C.S. off in no man's land in the endless miles of run down slum land in East St. Louis or dump him off in the middle of the 40 square miles of polluted industrial wastleland surrounding Detroit and let the F'n mother walk out of the shit in the middle of winter.
There are a number of relatively cheap ETFs that allow you to short all the major stock indices. Link: www.tradermike.net/inverse-short-etfs-bearish-etf-funds
Handy list ... thanks.
What would happen if they threw a party and nobody came?
Is there nothing that would prevent people showing up for "free" money? We really do behave as sheep and it is the very sheep crowding about the "free" money, complaining the loudest about sheep.
Die global corporations, die!
And they WILL, soon enough. Once they have chewed through their war chests, and that money disappears into the deflationary vortex, never to return because of tanking sales, they will start going under, one by one. Unless they are smart (snort!) and pro-actively downsize in a serious way. Meaning the layoffs start hitting the upper management and unrealistic 'growth' strategies are abandoned.
When the sclerotic mega-corps die off, small local entrepreneurs will pick up the pieces and generate an era of REAL growth. With the big ones gone, and a good healthy deflating of this overblown "economy", it won't take billions of venture capital to start a business. We'll go back to real supply/demand, with the focus on local rather then global concerns.
I hear Congress is getting ready to kill the Import Export Bank which guarantees overseas companies loans backed by the american taxpayer.
I didn't know, and I'll bet a lot of others didnt know either that we the tax payers were on the hook if a foreign company defaulted on a loan from an amerikan co.
The American Taxpayer is the new replacement.
Profit...who needs them anyway (TSLA,AMZN,NFLX...)
Oh, Phoenix Capital. You always cheer me up.
IMO
The banks need the stock market to fall so that they can restart their theft and fraud machines.
The current ones are running out of gas and they need to be refueled.
Of course, now the banks need to be properly positioned for the fall and that means finding suckers (err consumers) to bear the weight of the fall. How long will it take the banks to be properly positioned?
I do not know. You might want to ask God's banker, Mr. Cufflinks or the Hobbit.
The fed's refusing to raise interest rates even a pitiful .25% is an admission the economy is near death. If there was a "recovery," the patient wouldn't need to be on life support, now would he?
http://incapp.org/blog/?p=2661
How coluld profits be falling?
Bougtht and paid for tax laws allow all kinds of shennigans to obfusecate, lie, re-hypothecate, hide, and deduct losses, in order to show a profit.
The lamestream media is constantly heading the latest WH it's all good for the World!.
I believe there are perpetual growth profits, irregardless of reality because they went to Harvard or Yale, or ...
As soon as all that Keynesian "pent up demand" starts happening, it'll be rainbows and unicorn pee everywhere.......
Buy Apple , there fanboyz.
http://www.theguardian.com/technology/2015/sep/21/apple-removes-maliciou...
With your support we will make it through difficult times.
The new i-car is really going to suck. Who would be caught dead in an apple car?
Just shows you how desperate they are to get out of the toy business though.
But just what the world needs, another car. right?
An electric car with an apple logo... the icar will be the single biggest douche tag for the lefties.
I can smell the "smug" just by thinking about it.
https://youtu.be/PpWbObKK_tg?list=PLS5XPxnz4QPk1_Ucdp7KcasbYx7cnuhUL
Why waste your time with little gadgets when you can rake in that fat cash from the mass market auto industry?
Hell look at Tesla. It is now a multi billion dollar company and they have sold what, fifteen cars? All at a substantial loss.
Its free money, what could possibly go wrong?