Stock Market Next Comes the Big Drop

By: Graham_Summers

Today should be the peak of end of the quarter performance gaming.

Stocks have rallied hard for three days. The financial media has seen this as indicating the worst is over. But the fact of the matter is that most of this is performance gaming aided by various Fed officials issue verbal interventions yesterday.

As I’ve noted to Private Wealth Advisory subscribers, there’s a historical pattern here: stocks tend to lead summer rallies into the Fourth of July. With that in mind, the technical pattern we noted earlier this morning remains in play with the S&P 500 rallying to retest support.

As noted on Wednesday, market collapses follow a particular pattern:

1) The initial drop breaking support

2) Bouncing to re-test support

3) The larger drop

As noted on Wednesday, the S&P 500 has completed #1 and is now in #2. I expect the markets will hold up into next week. But at that point we’ll be primed for a serious collapse.

This is just the start. I warned Private Wealth Advisory subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.

This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.

If you are not preparing in advance for this, the time to get started is NOW.

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.

To join us

Clicking Here Now!!!

Graham Summers

Chief Market Strategist

Good Investing!

http://gainspainscapital.com

PS. If you’re getting worried about the future of the stock market and have yet to take steps to prepare for the Second Round of the Financial Crisis… I highly suggest you download my FREE Special Report specifying exactly how to prepare for what’s to come.

I call it The Financial Crisis “Round Two” Survival Kit. And its 17 pages contain a wealth of information about portfolio protection, which investments to own and how to take out Catastrophe Insurance on the stock market (this “insurance” paid out triple digit gains in the Autumn of 2008).

Again, this is all 100% FREE. To pick up your copy today, got to http://www.gainspainscapital.com and click on FREE REPORTS.

Graham also writes Private Wealth Advisory, a monthly investment advisory focusing on the most lucrative investment opportunities the financial markets have to offer. Graham understands the big picture from both a macro-economic and capital in/outflow perspective. He translates his understanding into finding trends and undervalued investment opportunities months before the markets catch on: the Private Wealth Advisory portfolio has outperformed the S&P 500 three of the last five years, including a 7% return in 2008 vs. a 37% loss for the S&P 500.

Previously, Graham worked as a Senior Financial Analyst covering global markets for several investment firms in the Mid-Atlantic region. He’s lived and performed research in Europe, Asia, the Middle East, and the United States.

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