I wanted to post an update on the market action.
The markets have been stretched quite hard to the downside. Having just finished their best first quarter performance in over 10 years, stocks were primed for a correction of sorts.
That is precisely what we got. Last week stocks posted their worst week of the year so far, despite verbal interventions from both the Fed and the ECB. However, the markets became overstretched to the downside in the process.
Remember, the real European collapse will occur when the political landscape changes in Europe: when supporting the bailout madness becomes unpalatable for EU leaders due to its political consequences in their home countries.
With that in mind, it is likely we'll see the markets hold up for the next week or so as all eyes will be on the French elections.
Currently Francoise Hollande, a hard-core socialist, is the frontrunner to win the second round of elections (assuming he and Sarkozy receive enough votes for there to be a second round).
If Hollande wins, then the REAL European collapse will begin. The only thing that could speed this process up would be if the bond markets implode in Spain or Italy before mid-May.
IF that happens then the markets have switched in sentiment from relying on intervention into full-scale panic mode and we are heading into another 2008-style nightmare.
This week is options expiration. Between that and the French elections, the markets should hold up for the next week or so. After that, things could become very VERY ugly very fast.
Remember, all collapses follow the same pattern:
1) the initial drop
2) the re-test/ attempt to reclaim upwards momentum
3) the roll-over/ REAL fireworks
The most money is made during #3. Right now we've just finished #1 and are moving into #2. When #3 hits (likely after the French elections), is when the REAL Fireworks will begin (assuming Spain’s collapse allows things to hold up that long).
So if you’re not already taking steps to prepare for the coming collapse, you need to do so now. I recently published a report showing investors how to prepare for this. It’s called How to Play the Collapse of the European Banking System and it explains exactly how the coming Crisis will unfold as well as which investment (both direct and backdoor) you can make to profit from it.
This report is 100% FREE. You can pick up a copy today at: http://www.gainspainscapital.com [5]
Good Investing!
Graham Summers
PS. We also feature numerous 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 a US Debt Default, runaway inflation, or even food shortages and bank holidays, our reports cover how to get through these situations safely and profitably.
And ALL of this is available for FREE under the OUR FREE REPORTS tab at: http://www.gainspainscapital.com [5]
Best Regards,
Graham Summers