How Many Bullets Can We Dodge?

All of these indicators are cresting just as we are about to move past April 15th and prepare for the most historically weak month of the year — the month of May. How Many Bullets Can We Dodge? [Dennis Slothower Photo] By [Dennis Slothower]( Written Tuesday, April 18, 2017 Traders were breathing a big sigh of relief that nothing major happened over the long weekend with North Korea. What led the rebound yesterday were big bank and tech stocks, but all market sectors were up as well, leading to today — TAX DAY — April 18th. Tax Day was been extended this year because April 15th fell on a holiday. While Friday was a holiday for the stock market, it was not a holiday for the government, which reported that retail sales fell for the second straight month in March. The Retail Sales Report for March was ugly, not only because it was weaker-than-expected, but also because it featured downward revisions of the February retail sales report. It just illustrates the clear divide between the strong consumer confidence reports (more belief of the future or soft data) verses sluggish spending on goods by consumers (which is hard data). This caused the Atlanta Federal Reserve to lower again its first quarter U.S. GDP forecast to 0.5%. Yet, expectations are for the S&P 500 companies overall to have a 10.4% growth rate for the first quarter. This would be primarily because of the energy sector, which is projected to report earnings of $7.5 billion in Q1 2017, compared to a loss of -1.5 billion in Q1 2016. This would make the energy sector the largest contributor as a sector for the S&P 500 this quarter on a year-over-year basis. This would be the first double-digit percentage growth since the third quarter of 2014, if corporation earnings come in based on these projections. Advertisement Is the Trump Bump about to turn into a stock market crash? What if I told you the Dow could reach 31,000 by this time next year? The bad news is we’re going on a roller coaster ride through hell to get there. [Free video]( reveals exactly WHAT will happen in the market … and HOW to take full advantage of it. Investors who fail to follow this advice could be caught in a cataclysmic crash. [Watch it now.]( By the second quarter of 2016, crude oil prices had reached $50 a barrel, so based on a year-over-year basis this earnings advantage will begin to disappear going forward. The stock market is already factoring this well ahead, especially in a rising interest rate environment. [4.18.17 img 1] In other news core inflation is slowing down abroad following the Fed’s tightening of monetary policy. [4.18.17 img 2] Advertisement No One Is Talking About This — Except Me & Trump Even with temperatures rising between Trump and Russia, Syria, Iran, and North Korea... no one is talking about this pressing shortage. A shortage that could derail Trump’s plan to put America as the undisputed superpower in the world... because right now, it isn’t. This shortage could hand you 33,700% while no is looking. Don’t wait another minute without seeing this special presentation. [Click here for more.]( Inflation in the U.S. is at 2%, where the Fed’s target is at, while Japan is back into a deflationary economy and the Euro zone barely above even. It is hard to imagine three or four more rate hikes with inflation numbers like this and no fiscal policy progress. Getting back to the nervous sigh over North Korea yesterday, the United States is deploying two more aircraft carriers battle groups, (CVN-76 Ronald Reagan and the CVN-68 Nimitz carrier group) towards the Korea Peninsula/Sea of Japan to join with the CVN-70 Carl Vinson for joint drills. The CVN-70 Carl Vinson is also joining forces with a squadron of warships from the Japan Maritime Self-Defense Force (JMSDF), which looks to include the new massive helicopter carrier JS-Kaga (DDH-184), which is outfitted primarily for anti-submarine warfare. Vice President Mike Pence warned the “era of strategic patience” with North Korea is over. North Korea has said it will test missiles weekly now. This military distraction has certainly taken the focus away from Congress, who must decide what it is going to do with the budget before the end of the month and on any fiscal policy reforms held up in Congress. Bank Earnings Begin Amid Recession Signals J.P. Morgan, Citigroup, and Bank of America reported good numbers. Goldman Sachs did not. Bank of Wells Fargo earnings came in flat. Even still, the bank sector closed down for the day on Monday and Tuesday was mixed as investors shun stocks. It was also announced that Warren Buffet’s Berkshire Hathaway has been unloading millions of shares in its position in Wells Fargo, as it sours on this bank company and its dishonest practices. I think it’s a smart move on Berkshire Hathaway’s part as recessionary pressures increase. [4.18.17 img 3] This is so significant. This illustrates that inflationary pressures are now accelerating, even as personal income has been decelerating, and at the end of 2016, the two had crossed over each other. In other words, when the consumer has less and less income but expenses continue to climb, what follows next? I don’t think you have to be Harvard trained on this to figure this one out. I think another key tell is the fact that the government receipts are plunging. [4.18.17 img 4] Advertisement How to Leverage Trump’s Trade War to a Legacy of Wealth It’s only a matter of time before President Trump slaps hefty duties on China and Mexico. And you can bet they’ll retaliate with tariffs of their own. The result: a global trade war, the likes of which we haven’t seen since the Great Depression. Will you be prepared? You’ll not only be prepared, you’ll be in position to reap windfall profits from it all if you make a few simple adjustments to your portfolio. [Click here to learn more now]( (while there’s still time). This is the biggest drop since the summer of 2008. Much of this decline is coming from a collapse in corporate income tax. The United States has the highest corporate income taxes of any developed nation. Small businesses have shrunk dramatically over the last eight years under the weight of Obamacare, tax penalties, and red tape. Over the last several years, major companies took their profits and bought back their shares rather than invest in the development of their company. They artificially boosted profits but over time they shrunk their companies, which is why revenues have been falling. This is why government receipts are falling as well, and when they turn negative year over year is when recessions materialize. I think this is why the President is having a hard time trying to get Congress on board with income tax cuts, because they see government receipts plunging now. It is why they are having a hard time repealing Obamacare, because the tax penalties are helping to fund the government. It is also a poison pill. This isn’t going to end well. Technical Top Set? Our long-term “monthly” chart studies of the Russell 2000 index look extremely toppy now. [4.18.17 img 5] Advertisement Elon Musk’s New Factory Could Put Dollars in Your Pocket Tesla is building a $5 billion lithium-ion battery plant called the “Gigafactory.” And when it comes online next year, it’s going to add to the insatiable demand for a rare resource essential to battery production. In fact, 80% of each battery is built using this material! We have an “insider” way into this opportunity that could earn you 826% in the months ahead... followed by 15x... even 20x gains from there. [Be first in line for these life-changing profits.]( Since the Federal Reserve began raising interest rates in December, the Russell 2000 index stopped advancing in the spike Trump rally, which began in November. Frankly, the broad market was in extreme conditions in November but the election results pushed things to a new level. There are several studies on this long-term monthly chart I want to draw your attention to. The top chart is the MACD oscillator, against a five-month exponential moving average. First, notice the MACD oscillator that measures the oscillation of the Russell 2000, now trending BELOW its five-month average. The MACD oscillator peaked in February and is now trending downward. Second, the Russell 2000 index stopped at a long-term resistance trend line connecting the monthly trend lines of 2013 and 2014 into 2017, so this is heavy resistance. Third, the monthly stochastics are now negative with %K at 91 and %D at 92 cresting, where we typically see major tops leading to meaningful corrections. Lastly, on the monthly relative strength index (RSI), the lowest study is trending downward. From a long-term perspective, notice the technical negative divergence (lower high from the 2013 high to 2017 high) compared to price (higher high in 2017 than in 2013). This is, technically, a big red flag. All of these indicators are cresting just as we are about to move past April 15th and prepare for the most historically weak month of the year — the month of May. Risk is extreme presently but this also means that in a few months we could be looking at some very outstanding opportunities later in the year. To your wealth, [Dennis Slothower Signature] Dennis Slothower Editor, Outsider Club [IN CASE YOU MISSED IT...]( Trump's going nuclear. But not in the way you might think... I've just uncovered his codes and his plan — [and you need to see this right away.]( Trump has actually been very busy constructing his own secret nuclear agenda. And several billionaires have already thrown down significant investments in it. [These "nuclear codes"]( unlock the resource needed by Trump to accomplish his goals... and unlock massive profits for investors. Something like 10,000% gains are on the table here. [I’ll secretly (and safely) send you the codes.]( But you must not share them with anyone... [Trump's Nuclear Codes]([(Click to Play)]( Enjoy reading this article? [Click here]( to like it and receive similar articles to read! Browse Our Archives [Emerging Opportunity in Fertilizer Stocks: Arianne Phosphate (TSX-V: DAN)(OTC: DRRSF)]( [Signs of A Crash: Decadence and Complacency]( [America’s Fate as the RMS Titanic]( [Are You Prepared?]( [Marijuana Stocks: Three Reasons It's Not a Bubble]( Related Articles [Record Bull and Bear Bets: Brace Yourself for a Rough Month]( [Marijuana Stocks: Three Reasons It's Not a Bubble]( [Signs of A Crash: Decadence and Complacency]( This email was sent to {EMAIL} . It is not our intention to send email to anyone who doesn't want it. If you're not sure why you've received this e-letter, or no longer wish to receive it, you may [unsubscribe here](, and view our privacy policy and information on how to manage your subscription. To ensure that you receive future issues of Outsider Club, please add ww-eletter@angelnexus.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance. [Outsider Club](, Copyright © 2017, [Angel Publishing LLC]( & Outsider Club LLC, 111 Market Place #720, Baltimore, MD 21202. For Customer Service, please call (877) 303-4529. All rights reserved. [View our privacy policy here.]( No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. Angel Publishing and Outsider Club does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. This letter is not intended to meet your specific individual investment needs and it is not tailored to your personal financial situation. Nothing contained herein constitutes, is intended, or deemed to be – either implied or otherwise – investment advice. Neither the publisher nor the editors are registered investment advisors. This letter reflects the personal views and opinions of Nick Hodge and that is all it purports to be. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. Neither Nick Hodge, nor anyone else, accepts any responsibility, or assumes any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information in this letter. The information contained herein is subject to change without notice, may become outdated and may not be updated. Nick Hodge, entities that he controls, family, friends, employees, associates, and others may have positions in securities mentioned, or discussed, in this letter. No part of this letter/article may be reproduced, copied, emailed, faxed, or distributed (in any form) without the express written permission of Nick Hodge or the Outsider Club. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.