Stocks Are Warning Danger! Danger!

Graham Summers * Phoenix Capital Research

A few weeks ago, we noted that stocks looked to be posting a false breakout.

A false breakout occurs when the market breaks out of a technical formation in one direction then fails to follow through on the move. Looking at the rising wedge pattern in the S&P 500 this appears to be happening now:

As you can see, stocks broke out of the rising wedge to the upside. However, this move looks to be rapidly losing steam. We’ve just seen a new lower high. And if the S&P 500 were to fall back below its upper trendline LOOK OUT: failed breakouts tend to resolve both quickly and violently.

Indeed if you look at stocks relative to Copper, there’s room for a REALLY bad correction here:

We’ve noted for some time that stocks had diverged sharply from the underlying economy. But this is a truly ugly chart. And if stocks ever begin to re-connect… it’s going to be BAD.

Investors, take note… the financial system is sending us major warnings…

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

As I write this, all of them are SOARING. In fact we just locked in four straight gains of 8%, 12%, 21% and 28% in the last month ALONE.

Are you ready for another Collapse in the markets? Could your portfolio stomach another Crash? If not, take out a trial subscription to Private Wealth Advisory and start protecting your hard earned wealth today!

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Best Regards,

Graham Summers

http://gainspainscapital.com/2013/05/29/stocks-are-warning-danger-danger/