The 3 Laws of Financial Gravity & Crash Indicator

* Stocks have to “overcompensate” after a crash. A stock that falls 50% has to rise 100% to get back to even. A stock that falls 66% needs to rise 200%.

* Gravity is stronger than helium and stocks fall much faster than they rise. In last year’s crash, the S&P lost five years of gains in nine months. Telecomm stocks lost 3 ½ years of gains in two months, and real estate stocks saw six years of gains vanish in five months.

* Major crashes tend to have “After-crashes.” You might call the rebound over the last seven months a “bear market rally” or a “dead cat bounce.” But just as earthquakes have aftershocks, market crashes tend to be followed by “after-crashes.”

The # 1 Predictor of Collapsing
Share Prices Just Issued a “Sell Now ” Signal for Small Investors
The last 56 times this happened the signal proved right 55 times.

f you’ve ever climbed a mountain, a hill, or just a few flights of stairs, you know it takes longer to get to the top than back down to the bottom.

The same is true of stocks.

Dozens of studies confirm this. But Forbes recently summed it up best.

“These results are in line with our earlier research and reflect the fact that stocks fall a lot faster than they rise.”– Forbes, 4/22/09

Notice the words “a lot faster.” They weren’t exaggerating…

* It took AIG 14 years to go from $50 to a $1,000 a share. Then it went from $1,000 to $50 in ten months.
* Citigroup needed 12 years to go from $5 to $50. But only 16 months to go from $50 back to $5
* And how about Ford? It took ten years for the auto giant to quadruple from $2 to $8 a share. Last year, it went from $8 to $2 in five months.

And it’s not just the “bad stocks.” Take a look at the entire S&P 500….



From October 2002 to October 2007 the S&P 500 rose 102%. That’s 5 years to double. Then it took only 9 months to drop by more than half and erase all those gains!

The same powerful effect applies to any type of stock you can think of: small, large, value, growth, foreign or domestic. Doesn’t matter the industry or the sector…

* For tech stocks, 31 months of gains disappeared in 13 months.
* Real estate stocks saw 76 months of gains vanish in 5 months.
* Telecom stocks had 3 1/2 years of gains disintegrate in 2 months!

It’s like a law of nature…

Gravity is stronger than helium and stocks fall much faster than they rise.

Introducing “The Credit Crunch Short Indicator”
A Ruthlessly Efficient Technique for Profiting from the Market’s “Weakest Links”

To understand how this remarkably accurate system works, consider how a lion chooses its prey. It targets the weakest member of the herd. It might be lame, sickly or one of the youngest, not yet able to defend itself. Whether we like it or not, this is the way nature operates… how it “culls the herd.”

In the stock market you’re not going to pounce on an innocent animal. But to make the fastest (and often surest) profits the market offers, the same basic principle applies. In order to “make a killing,” you need to focus on the weakest links.

This is exactly what the Credit Crunch Short Indicator does.

The name is a mouthful. But it says exactly what it does.

1, 2, 3, 4The Credit Crunch Short Indicator (or CCSI, for short):focuses on companies going through a credit crunch (and in this economy few aren’t). Then it whittles them down to the absolute weakest links. It only pulls the trigger under very specific conditions. (This is to dramatically increase your odds for success—as much as 98%.) Once the indicator is hit, you “short” the stock (which simply means you make money as the shares fall).

Hence the name. But to keep things simple, we’ll just call it the CCSI for now.

“The U.S. recovery is a tale of two economies. At one extreme of Corporate America is a cadre of companies.... with slumping sales that can't borrow or are facing stiff terms to do so.”

- The Wall Street Journal

But whatever you call it, the most remarkable thing is its accuracy. The last 56 “sell” signals it issued resulted in stocks falling in 55 of those cases—anywhere from 20% to 100%.

Let me pause a moment so we can talk about “the elephant in the room.” If I was you, I’d be very skeptical right now. A track record of 55 accurate calls out of 56 attempts seems too good to be true. And I agree. It actually worried me and caused my colleagues and me to work overtime the last few months, trying to make the system fail.

I would be much more comfortable to report it worked 55 out of 75 times. That would still be great. And it would be more believable. But it wouldn’t be true.

Very Rarely!As I’ll explain, the Credit Crunch Short Indicator is made up of four criteria that appear very rarely in any one stock. That’s the reason for its amazing success. It’s extremely selective.

Silence speaks volumes

I have to admit after many years in search of this kind of system for profiting from falling stocks, I was getting somewhat excited by our unexpected overwhelming success with the Credit Crunch Short Indicator. But with every correct call, I also grew a bit more skeptical.

I’ve been around too long not to know that nothing is perfect…and very few things are even close to perfect. Maybe a winter evening down here in Florida, The Godfather Parts I and II, and the way Tiger Woods hits a golf ball. And that’s about it.

So, for me, the ultimate proof in the pudding was something that—in some ways—is even more remarkable than the indicator’s 98% accuracy rate. And that was this…

During the recent 50%+ bull market rally The Credit Crunch Short Indicator didn’t “chirp” once. Not a sound!

Despite a universe of nearly 63,000 public companies worldwide to choose from, and after a string of 98% accuracy spanning nearly three years, it went dead silent.

It only started up again last week. Like a trusty old boiler that kicks on again the first cold day of winter, the CCSI revved up and spit out its first sell signal in over seven months!

This system doesn’t issue false signals. (Fortunately for us! The last thing you want is to short stocks during one of the strongest market rallies in history!) In baseball terms, it lets a lot of close pitches whiz by. Even if it has to let the bat sit on its shoulder for quite a few innings.

But when it swings, it tends to connect. And when the sell signals come, they tend to come in bunches.

Let me tell you how and why The Credit Crunch Short Indicator works, and why it’s “acting up” again. (Five other stocks are on the verge of hitting their fourth trigger and could soon issue CCSI Sell Signals.) Then I’ll show you how to use these signals to turn investments of $700 into $6,308… $2,300 into $11,247… and $2,400 into $32,520!

(In fact, if you wanted to go “economy” you could have risked as little as a few hundred dollars per trade! The affordability is tremendous. That’s why I refer to these incredibly accurate sell signals as perfect opportunities for “small investors.”)

Pouncing on wounded antelope

As I was saying a moment ago, the Credit Crunch Short Indicator has such a high accuracy rate because it’s extremely selective. Specifically, a stock needs to hit four very specific criteria to issue a sell signal. You rarely find three of them in one stock at the same time—much less all four. But 98% of the time, when you do find all four triggers, they lead to big profits as the stock falls.

Take Boeing for instance…



Boeing was getting its clock cleaned by Airbus (which has the unfair advantage of European government subsidies). Canceled orders and growing cash flow problems started to show up in the financial statements. Then Trigger # 4 kicked in, confirming credit crunch problems were starting to show up in the share price… and it was “Watch out below!”

Here’s another example…



eekay’s an oil services company and plunging oil prices started to show up in the financial statements. It lost nearly a half billion dollars last year while debt grew by nearly $3 billion from two years earlier. These and other credit crunch problems set off triggers 1, 2 and 3. But the 4th trigger didn’t set in until almost a year after the other three. But once it did, it was almost a straight shot down.

I could show you 53 more examples just like these. But I have something more interesting to show you. How to trade the “predictable” collapse of stocks like these for profits of 389%, 801% and 1,255% in a very short time, usually just a matter of months.

The Credit Crunch Short Indicator lets you short a stock using the most profitable and least risky method available

When you “short” a stock the traditional way, if it falls $10, you make $10. Fair enough.

But there’s another way to short a stock where you can make far more while risking less! It’s called a “put option.” Combined with the Credit Crunch Short Indicator, it’s an extremely powerful way to make money.

To see the huge difference this makes, take a look at Boeing again.



A Tale of Two “Short Sellers”
How to Risk Less and Make More
Credit Crunch Indicator Flashes the Sell Signal and Boeing Crashes 52%...



Rest of article is for subscribers only so I won't post...

 

As I always say, the market takes the stairs higher but takes the elevator DOWN.................

 

so now you are spaming us with pay newsletter infomercials?

 

it bungies down.....hopefully not like the guy in thailand

 

Newsletters need a New Yawk street address for credibility.

 

This is from the Alt-A letter.

I could care less if anyone signs up. Honestly.

I posted it because it talks about the things it does and the 'Z indicator.'

 

ByLo, if the first system is true (98%) correct sell calls. And the system is 4 triggers to be hit before a sell call, true?
So this means you only buy the put option (after) the trigger 4.
So the underlying is (known) to be in the downtrend.
And that means the premium price is high for put options...but who care if the short bias is 98% correct, true?
So this is for exercising the option, or for closing out?
ps I think the first system is the (too good to be true)

 

Awesome. All we need to do now is wait 30 years for the next crash.

 

You won't have to wait another 30 years for the next slaughter, cause this isn't a V shaped recession. It's a W shaped one and the trough of the W might be very long. We might be entering the second phase of the w now that the first rebound part is almost over with.