Three Charts that Should Make You Worry

While the broader market doesn’t indicate economic strength, these sectors do… July 20, 2021 UNSUBSCRIBE | ARCHIVES Three Charts that Should Make You Worry “Your chance to see this is coming to a close” This could be the most important message you see all year if you are serious about securing your financial future. A famed gold expert has said we’re witnessing a rare occurrence in the gold sector that we haven’t seen for years… In this short message he urges you NOT to invest in anything until you hear this.  Click here to see the important briefing before it comes down tonight at midnight. Dear Money & Crisis Reader, Yesterday I noted that Friday’s action was very troubling. By quick way of review: It has been unusual for stocks to close lower on Fridays. It’s been even more unusual for stocks to finish the week down. Not only did stocks finish the day and week down but they did so near the lows. This too is highly irregular as the markets typically bounce hard off the lows even if they finish the session or week down. Today I’d like to delve into the specifics of what the market is telling us. The market is telling us that something BAD is brewing in the economy. While it’s true that, in general, stocks no longer have a close relationship with the economy (I’ve written about this previously showing how stocks will often rally on both bad and good economic news), certain sectors are HIGHLY correlated to economic activity. And they all are flashing major warnings. The Media is finally Catching on We’ve been talking about THIS since late last year. And now the media too confirm the world’s richest man’s   “second act” could be as big as his first. For once,  the media have got it absolutely right This “second act” is a prime opportunity for Americans to get in on the ground floor of potential wealth-creating opportunity. But you have to hurry. A major reveal is expected on August 23. After which it could be too late. To see how you can potentially cash in on the developing situation Click Here Now. First and foremost is the industrial sector (XLI). These are companies that either produce actual things like tractors, cranes, HVAC systems, etc. or that are involved in real economic activity (mail/shipping). As such, they represent a good gauge of how strong the real economy is: During economic expansions these businesses receive more orders. The chart is downright awful. Industrials have rolled over and broken below their 50-day moving average (DMA). Next up is the materials sector (XLB). These companies produce things like concrete, copper, steel and the like. During economic expansions these companies receive more orders as they are the primary suppliers of commodities needed for construction and manufacturing. Here again the chart is awful. The breakdown is more severe than that of the industrials. Not only is XLB further below its 50-DMA, but the down days are powerful, wiping out weeks’ worth of gains in a single session. Finally, we have the consumer discretionary sector (XLY). Consumer spending accounts for 75% of the U.S. economy. The chart is not as bearish as that of industrial or materials sectors, but it is still not good. XLY has effectively gone nowhere since April. The rally from June into early July failed miserably, and now it looks as though we’ll see a test of its 50-DMA. By itself this is an ugly chart, but in the context of what’s happening in industrials and materials it is very worrisome. Add these charts up and they are telling us something BAD is happening in the economy right now. How bad? We’ll dive into that conversation in tomorrow’s letter. Best Regards, Graham Summers Editor, Money & Crisis Are You Gagging on the Gig Economy? The gig economy was supposed to give us freedom. Mainly it seems to have given us freedom to hustle our tails off and barely earn a living wage. There has to be a better way. And there is. Big societal shifts during the past year mean big opportunities for making money abound. But only to those in the know how to create real income-generating business. Find out more here. To end your Money & Crisis e-mail subscription and associated external offers sent from Money & Crisis, feel free to click here. If you are having trouble receiving your Money & Crisis subscription, you can ensure its arrival in your mailbox by whitelisting Money & Crisis. Money & Crisis is committed to protecting and respecting your privacy. Please read our Privacy Statement. For any further comments or concerns please email us at MoneyAndCrisis@threefounderspublishing.com. Nothing in this e-mail should be considered personalized financial advice. 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