"We all know how bubbles end: BADLY...This time will be no different..."

The Fed has created the mother of all bubbles.

Today, the S&P 500 is sitting a full 34% above its
200-weekly moving average. We have NEVER been
this overextended above this line at any point in
the last 20 years.

Indeed, if you compare where the S&P 500 is relative
to this line, we're even MORE overbought that we were
going into the 2007 peak at the top of the housing bubble.

We all know how bubbles end: BADLY.

This time will be no different. The last time a major bubble
of these proportions burst, we fell to break through this line
in a matter of weeks.

We then plunged into one of the worst market Crashes of
all time.

By today's metrics, this would mean the S&P 500 falling
to 1,300 then eventually plummeting to new lows. However,
given the scope of this bubble we believe sub-700 on the S&P 500
is possible.

This is not doom and gloom. This is a fact. The Fed
has created an even bigger bubble than the 2007 one.

The time to prepare for this is not once the collapse
begins, but NOW, while stocks are still rallying.
Stocks take their time moving up, but when they
crash it happens VERY quickly...

Graham Summers

Phoenix Capital Research