Wealth Protection Kit

Transcription

1 Wealth Protection Kit Report #2: Spot Crashes Before They Happen In this report, I m going to tell you about my proprietary Crash indicator: the indicator that even Wall Street doesn t know about. This trigger has caught every Crash of the last 25 years. It registered before the 1987 Crash, the Tech bust, and the 2008 Market Crash. In fact, this indicator helped me warn subscribers to get out of the market in 2008 a full three weeks before the October- November disaster began. By using this pattern, you ll be able to better time REAL DEAL collapses in the market place, using the UltraShort ETFs I told you about in a previous report. In fact, had you used this indicator and bought the UltraShort ETFs I told you about when it registered in 2008, you would have more than doubled your money in just a few weeks time. OK, here s how it works all market collapses follow one simple pattern. That pattern is: 1) The initial decline 2) The bounce 3) The Crash This pattern works for individual stocks as well as entire market indexes. The psychology behind it is that every time the market sells off hard, investors don t fully believe that a collapse is coming. Because of this, there s usually a brief bounce as buyers come into the market expecting that the first drop was the full move. Then you get the REAL Crash when the market rolls over as sellers come in overwhelming the buyers. When this happens, panic sets in and investors stampede en masse for the exits. Based on this pattern, the best time to prepare for a collapse is at the end of the bounce. This is when my Crash indicator goes off: right as investors begin to realize that BIG TROUBLE is afoot and start to stampede for the exits.

2 My Crash Indicator works as follows: when the market breaks below its 50- DMA (the initial drop) and then rises to test the 50- DMA from below (the bounce). If it FAILS to reclaim or stay above the 50- DMA and rolls over then you have a confirmed Crash trigger. Bear in mind, this ONLY works in environments in which the market has rallied to extreme heights. Not EVERY break below the 50- DMA is a registered Crash trigger. So you must consider just how overstretched the market is whenever it breaks below its 50- DMA before you apply my Crash indicator But as the following charts will reveal, in the correct context (when the market is very overstretched) my Crash indicator can be unbelievably successful. Here s how it worked before the 1987 Crash: As you can see, we had an initial drop below the 50- DMA in August There was then a brief bounce to retest the 50- DMA and THEN came the Crash. The trigger hit right on time and those who followed it made a fortune as the market plunged 28%. Now let s take a look at the Tech Crash

3 Once again the Crash indicator went off, although this time the retest of the 50- DMA took longer. However, as soon as the NASDAQ fell below the 50- DMA with conviction, we had a confirmed Crash trigger. What followed was 40% drop. Here s the 2008 Crash:

4 Again, the same pattern: a break below the 50- DMA, at attempted retest, and then a confirmed Crash trigger. What followed was a 42% collapse. This trigger also caught the European crisis of May Once again we see the initial drop followed by a brief bounce and then a confirmed Crash trigger. What followed was a 12% drop in stocks. The only reason the collapse wasn t bigger was because the world central banks made a concentrated effort to pump the system full of liquidity. To say that this indicator is successful at catching collapses would be a massive understatement. As you can see, it s caught every Crash of the last 25 years. Which is why I strongly urge you to add this indicator to your investment toolbox for timing when to get out of the market as well as how to profit from Crashes. What You Learned In This Report My proprietary crash indicator is straightforward but effective. It uses the pattern of 1) initial drop 2) bounce 3) the CRASH, which all market collapses follow. The best time to bet on a market Crash is at the end of the bounce stage. When you combine the UltraShort ETFs from my first report with my Crash indicator, you can turn Crises into times of oversized profits

5 Best Regards, Graham Summers Chief Market Strategist Phoenix Capital Research