The Trader Stock Index Games Are Ending

By: Graham_Summers

Traders shot for and managed to hit 1,700 on the S&P 500. At this point, there is no real reason for this other than trader games (start of the month buying).

The rising wedge pattern we’ve been tracking is essentially complete. This final jump in the S&P 500 has been a bounce from the upper trendline. But by the look of things, this is likely the final push.

The biggest driver of equity prices is corporate earnings. The only real reason stocks are moving up is based on the belief that the US economy is about to coming roaring back and corporate profits will soar.

This is a totally misguided viewpoint. Financials are the single biggest contributors for earnings growth in the S&P 500. These earnings are entirely fiction based on accounting gimmicks, not real money being made.

Ex-financials, the S&P 500’s earnings for the second quarter are DOWN 2.3%.

There is a word for this kind of market, it’s BUBBLE.

Take a look at how extended the weekly S&P 500 chart is above the 200-week moving average.

So we have a super overextended stock market on a collapsing economy and weaker corporate profits.

What could go wrong?

The Great Crisis, the one to which 2008 was just a warm up, is approaching. The time to prepare for it is BEFORE the US stock market bubble bursts.

With that in mind, I’ve already urged my Private Wealth Advisory clients to start prepping. We’ve opened six targeted trades to profit from the stock bubble bursting.

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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