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Stocks, Bonds, and Indexes: Here Are the Important Levels I'm Watching

By , Capital Wave Strategist, Money Morning • @WallStreet_II -

Shah Gilani

Big market benchmarks like the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all tend to go up together, even if they don't always move up at the same pace.

But when markets go down, especially if they go down hard, they all tend to lose at similar rates.

So the secret to being defensive - or profiting from any market plunge - is knowing what's driving the markets and where the important support levels are in benchmark stocks and indexes.

Naturally, as stocks approach those levels, it's a good idea to start setting up your defenses.

That way, if they break those levels, you're free to parlay a potentially ugly downside move into some beautiful profits.

I'm going to show you what the big fish (the institutional investors and trading desks) are keying on now - and what important levels they're watching.

Because if these break, things will get very rough indeed...

Do This Before the $170 Trillion Global Debt Trap Sinks the Markets

By , Associate Editor, Money Morning • @DavidGZeiler -

Global Debt Chart

A worsening global debt trap will make it much harder, if not impossible, for the world's central banks to respond to the next major financial crisis.

Ten years of low interest rates and money-pumping policies of central banks were intended to lift us out of the last financial crisis. But those policies also encouraged businesses and individuals to acquire mountains of debt. Now the central banks are stuck with no ammunition to fight the next crisis. But investors can take steps to protect their money.

Here's what you need to do...

A Survival Guide to the Worst Market Apocalypse: Part II

By , Special Situation Strategist, Money Morning -

Stack Market Crash

When I was considering the question of whether or not rate hikes mattered, I realized something even more profoundly simple.

Nothing actually matters in the financial markets - until it does.

I have seen stocks shake off rate hikes, wars, New England Patriots Super Bowl victories, ridiculous fiscal policies, and any other sort of calamity before calmly moving higher. I have also seen markets that collapse on fears of currency moves, human error, and stupidity (the most common cause of market collapses).

We'll never know what the market is going to say, but once it does speak, there are tools you can use to decipher its message.

Personally, I prefer the toolkit outlined in part I: buying assets trading far below their fair value, waiting until they rise back to that fair value or higher, and selling them for a huge profit.

However, I know that while I may be a smart guy, I'm definitely not the smartest guy participating in the markets. I have my own investing philosophy that's worked well for decades, but I'm certainly not above freely stealing other ideas from other bright investors if those ideas make me taller, better-looking, or wealthier.

With that in mind, today I'll show you two ways to hear what the market is saying, to sidestep the worst market conditions, and to generate huge windfalls as everyone else runs for the hills.

And these two methods happen to have been developed by the unlikeliest of investors - a California surfer and a former Marine...

Here's What's Driving the Most Volatile Markets We've Seen Since 2016

By , Editor, Money Morning -

store closings

The legendary Jack Bogle, founder of Vanguard Investments, gave an interview to CNBC last week in which he said, "I have never seen a market this volatile to this extent in my career... I've seen two 50-percent declines, I've seen a 25-percent decline in one day, and I've never seen anything like this before."

The "father" of passive index investing is, of course, talking about the powerful whipsawing on the Dow Jones Industrial Average and the much broader S&P 500; sharp, triple-digit declines followed by sharp, triple-digit rallies what seems like every other day or so.

It makes sense that an investor like Bogle - a passive investor - is less than thrilled by all the action lately. And as we'll see, he's off-base in his comments.

But even nimble, active players are watching this and asking, "What's going on?"

Money Morning Capital Wave Strategist Shah Gilani is here to let us know precisely that and, even better, what needs to happen for us to go higher from here.

Here he is...

How to Cash In on the Death of the Fed's "Easy Money Market"

By , Executive Editor, Money Morning • @privatebrief -

easy money market

As a writer, a Baltimore guy, and someone who loves horror fiction, I have a special affinity for Edgar Allan Poe, the master of macabre horror tales who wrote some of his best stuff here in Charm City. And one of my absolute favorites was an off-the-radar story called "A Descent into the Maelström."

Turns out, I'm not the only fan of this spine-tingler: D.R. Barton, Jr., a good friend and colleague who's also one of the top technical trading experts in the market today, also loves this tale.

But of course, we're not here for a Gothic fiction reading circle. We're out to make money - serious money.

And we mention "Maelström" because it turns out that this Poe short story is an almost perfect metaphor for the brand-new market "call" that D.R. is making.

Thanks to an array of converging "triggers," D.R. sees an abrupt and dramatic shift away from the largely "correction-free" bull market run that's allowed U.S. stocks to grind their way up to current stratospheric, record highs.

That shift, he says, will be followed by a period of whipsawing volatility unlike anything we've seen in years.

With downside market risk seeming to have taken a vacation in recent years, D.R. says investors have been lulled to sleep and are unprepared for what's to come.

That leaves them open to big losses - even ruinous ones. The unwary will be "treated" to a whipsaw market scarier than anything Poe ever dreamed up.

But, as was the case with the Poe short story, there's a strategy - a "secret" - for surviving the threat.

Folks who are in on it will not only "live to tell the tale," but they'll be able to cash in on what D.R. refers to as "one of the greatest trading windows" he's seen in years...

This Upcoming Treasury Borrowing Binge Could Hit Markets Harder Than the 2008 Crisis

By , Liquidity Specialist, Money Morning -

FOMC meeting minutes

The most important governmental advisory committee you've never heard of just issued a stunning forecast and warning that every investor needs to hear.

This warning was not reported in the mainstream media, even though it came from the most elite level of Wall Street. 

Nor did this crowd release its forecast through its captive media, like CNBC or The Wall Street Journal.

I'll tell you why in a minute, but people who do get this warning will have the chance to protect what's theirs and make some money when this happens...

Some Big Wall Street Players Are Starting to Sweat a Crash

By , Capital Wave Strategist, Money Morning • @WallStreet_II -

Crash

When it comes to the stock market, everything's always all good... until it isn't.

And it's been all good: U.S. stocks have been rallying for nine years, making successive all-time highs, with only sporadic bouts of profit-taking by the Nervous Nellies along the way.

But now, some huge investors - marquee names - are getting nervous.

And they're letting people know about it, too...

Between them, these giants are pushing around close to $1.7 trillion in capital - more than enough for them to be able to make waves wherever they go.

I'm going to show you what to do if these whales are right; they might just be...

How to Profit When the $217 Trillion Global Debt Bubble Bursts

By , Resource Specialist, Money Morning -

global debt bubble

While in London recently at an exchange with British Academy President Lord Nicholas Stern, Federal Reserve Chair Janet Yellen really let the cat out of the bag.

She told Stern that banks are now "very much stronger," with another financial crisis like the one in 2008 unlikely to happen anytime soon, and not likely "in our lifetime."

According to Yellen, the Fed has "learned" from the Great Recession of 2008 and is now more watchful over underlying risks in the financial system. She's comfortable saying, "I think the system is much safer and much sounder."

Well, isn't that reassuring...

Really, it's just more of the hubris that got us into the last financial crisis - the one that dragged the global economy to the edge of a precipice and vaporized trillions in wealth. I'm sure you remember it well, even if Yellen seems a little foggy on the details.

On the one hand, central banks periodically warn us against overpriced assets, interest rates at or near extreme lows, and excessive borrowing.

And on the other hand, it's their freewheeling, easy-money policies, ostensibly put in place to stimulate the post-crisis economy, that have just coaxed global debt levels to new records.

That, in my view, has only pushed us further along toward the next crisis. With debt completely out of control all over the world, it won't take much to tip the cart over.

Student debt, subprime auto loans, credit cards, name it: Any one of a number of debt bubbles could be the last straw.

That's why I think my recommendation today is going to knock it out of the park...

You Could Be Stuck with Deutsche Bank’s Bills

By , Resource Specialist, Money Morning -

Deutsche Bank

The 5,300 Wells Fargo employees who set up 2 million bogus accounts to bring in a measly $5 million in extra fees are being fobbed off as "a few bad apples."

They're not. They're the product of a global corporate culture of entitlement and corruption. The proverbial tip of the iceberg.

Don't get me wrong - Wells' misdeeds are bad, but there's much, much worse going on in the banking sector right now.

The moral hazard and casino banking underway at this very moment are putting the entire global financial system at risk - again - when we've barely recovered from the last crisis.

So today, I'm recommending everyone buy the ultimate "alternative money" at some of the best prices we're likely to see for the rest of the year...

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