The REAL Stock Market Remains Below Its February Highs
Stock-Markets / Stock Market 2017 May 28, 2017 - 12:00 PM GMTFor weeks I’ve been noting that stocks are being driven by a market rig.
By way of review, that rig is as follows:
1) Someone slams the VIX lower.
2) This forces risk-parity funds to buy stocks, usually the FANGs or large-cap Tech names (Facebook, Apple, Netflix, Google).
3) FANGs rally, which due to the weighting in the S&P 500, forces the overall market higher.
The last point is key.
When you remove the influence of FANG stocks (Facebook, Apple, Netflix, and Google) by giving every company in the index equal weighting, you find that the market has yet to reclaim its former peak May peak.
Why does this matter?
Because ALL market rigs, no matter how clever, ultimately fail. And when they do, the failure can be MASSIVE.
Remember this one? This was a market rig than worked for months… and then failed spectacularly in a single day:
A Crash is coming… it’s going to horrific.
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Today is the last day this report will be available to the public.
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Graham Summers
Phoenix Capital Research
http://www.phoenixcapitalmarketing.com
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.
© 2017 Copyright Graham Summers - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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