Warning: Three Major Stock Market Bellwethers Are on Red AlertCompanies / Company Chart Analysis Mar 28, 2017 - 10:04 PM GMT
As we have repeatedly warned since mid-December, the “Trump trade” was based on hype.
This is not to say that President Trump will not succeed in generating economic growth… it IS to say that whatever growth is coming will do so in 2018 as opposed to the GDP growth of 5% that the market seemed to believe would be hitting in early 2017.
With that in mind, consider the following charts.
Freeport McMoRan (FCX) is a copper producer. As such this company is extremely tied to economic growth.
With that in mind consider that of the incredible 61% rally FCX staged post election night 2016, the vast majority of it 54% hit in November. Since that time, the chart went effectively nowhere with the exception of eking out a minor new high in January. And it has now unwound almost ALL of its election rally.
As one of the largest courier businesses in the world, Fed Ex (FDX) is another economic bellwether in that its business is closely tied to economic growth.
Here again the story is the same: MOST of the chart’s gains came in November and since mid-December the chart has gone nowhere. FDX now has one last remaining line of support before the entire election rally move is unwound.
Machine manufacturing giant Caterpillar (CAT) is perhaps the single best economic bellwether on the market. And here again the story is the same: a massive rally in November, followed by four months of “going nowhere fast.” And once again, there is just a single line of support before the chart comes crashing down.
Put simply, three of the most economically sensitive charts on the market are ALL warning that the Trump trade is in serious trouble. You can ignore them if you want… but smart traders are already positioning themselves for what’s coming.
On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.
In it, we outline the coming collapse will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.
Today is the last day this report will be open to the public.
To pick up one of the remaining copies, swing by by:
Phoenix Capital Research
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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