Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

GoldSeek Radio: Michael Pento, Ryan Walsh and Chris Waltzek

Technical Scoop - Weekend Update January 21 2019
By: David Chapman

Semiconductor Sector: Watch the Early Bird in 2019
By: Gary Tanashian

Bull in the China Shop
By: John Mauldin

No, Barron's, the gold supply can be and has been increased much -- with imaginary metal
By: Chris Powell

Gold Stocks Remain in a Downtrend
By: Jordan Roy-Byrne CMT, MFTA

U.S. SHALE OIL INDUSTRY: Not In The Business To Make Money, But To Take Money
By: Steve St. Angelo

Brexit, EU, Germany, China and Yellow Vests In 2019 – Something Wicked This Way Comes
By: GoldCore

Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Almost 1% and 2% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 1 18 2019
By: Ira Epstein


GoldSeek Web

Three Charts Are Warning a Market Collapse Is Just Around the Corner

 -- Published: Monday, 1 May 2017 | Print  | Disqus 

By Graham Summers


The markets are speaking, but no one is listening.


The single driver of the stock market since election night is the hype of a Trump-policy driven economic boom. The economy is booming, but based on expectations NOT actual policy changes.


This is a critical distinction.


Stocks are MOST susceptible to violent drops (or even Crashes) when illusions are shattered. The illusion of major changes to the US economy is about to be shattered.


The markets are already telegraphing this.


The single most important stock market index for assessing “risk on” vs. “risk off” is the Russell 2000. What the Russell 2000 does… the rest of the market soon follows.


On that note, the Russell 2000 has just staged a final blow off push to the upside. And. It. Failed. The momentum here has shifted and we could drop to that red box (a 5% drop) in a matter of days.


Put simply, this chart is telling us that the market has just entered “risk off” mode.


Then there’s the Dow Jones Transportation Index.


This is THE most economically sensitive index for the markets. Transports “get” the economy better than any other group of stocks.


On that note, Transports are telling us that the economy is not in fact booming… it’s basically just treading water, no matter sentiment says. In fact, we’ve got a very nasty Head and Shoulders pattern forming here.


If the economy was really roaring, Transports would be soaring. They’re not. If anything, they’re getting ready to drop 1,000 points in the next 30 days.


Finally, and most importantly, there is High Yield Credit or Junk Bonds. These represent the credit cycle. When credit growth is strong here, financial conditions are strengthening in the financial system and risk does well.


When credit growth is weakening, or worse, contracting here, financial conditions are worsening in the financial system and “look out below.”


On that note, Junk Bonds are rolling over and preparing to break out of a textbook perfect bearish rising wedge pattern. This is telling us that the entire move from the February 2016 bottom is about to come unraveled. We could easily see stocks drop 10% from current levels if this pattern is confirmed.


These three charts, taken together, suggest the markets are about to experience an “event” in which risk comes unhinged. When this happens, the markets will adjust VIOLENTLY to the downside.


Best Regards


Graham Summers

Chief Market Strategist

Phoenix Capital Research


| Digg This Article
 -- Published: Monday, 1 May 2017 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2019 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


The views contained here may not represent the views of, Gold Seek LLC, its affiliates or advertisers., Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, Gold Seek LLC, is strictly prohibited. In no event shall, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.