The U.S. military sees it as the key to future victories.

NASA thinks it’s the key to reducing space exploration costs.

And universities in several states believe it could end the suffering caused by the world’s most terrible diseases.

Boeing’s bought one. So has Rolls-Royce. And every new company that buys one drives another nail into the Chinese manufacturing coffin.

It’s a homegrown technology many say could be bigger than the Internet.

Business Insider is convinced it’s the next “trillion-dollar industry”…

It’s rare that a truly new technology comes along, promising to revolutionise the world. Just as the printing press and spinning jenny empowered cottage industries with the ability to spread knowledge and manufacture goods, 3D printers promise to enable a next-generation industrial revolution of home-made and customised products.

And not in 25 or 50 years’ time…

This is happening now.

The industry — and the stocks behind it — will literally grow thousands of percentage points over the next few years.

When you see it for yourself, you can’t help but understand why…

In no time at all, this technology could cause the collapse of millions of Chinese manufacturing jobs and send them back to America.

But it’s only going to happen once. And you’ll never see anything like it again.

That’s why I personally oversaw the creation of sensational new video showing you exactly how it works and how to profit from it.

Call it like you see it,

Nick Hodge
Editor, Early Advantage

All of a sudden volatility has come back. Over the last several weeks we have seen sharp one day selloffs that has sent the media into an absolute frenzy followed by large surges the next day with the media telling you now is the time to jump in. For the average investor it has been more than just a little confusing as to what should be done with portfolios.

It is sometimes very confusing for investors to discern what they should be doing because of the day to day noise from the media. As I stated above; the media attributes whatever is happening during a particular trading session to the news item of the moment – whether it is relevant or not.

This presents a real difficulty for investors to navigate the management of their portfolio – which is why most individuals simply don’t. This is why we encourage you to step back from the day to day “noise” to see the bigger picture. It is much like art – take a look at a very famous work of art below.

When you stand too close to the painting you lose perspective, detail and the connectivity of the overall painting. However, if you step back you see Claude Monet’s “Sunrise.”

This is the primary problem for fundamental investors. The focus on financial ratios, historical comparisons and valuations keeps analysts, and portfolio managers, standing too close to the market. This is why they consistently miss the detail and connectivity of the overall environment.

This is also the same problem that individuals face daily when reading the latest headlines or listening to the financial media. Daily headlines rarely have anything to do with market action in the short term. However, each day, we are inundated with the details of some economic, or corporate, report that is responsible for moving the entire market. Even though this is absolutely not the case; individuals, and professionals, continue to stand too close to the painting and miss the broader detail.

Take a look at the chart below.

…..read the whole 17 page report HERE

There are certain times – like now – when investment markets appear to be in a state of “suspended animation.” And it’s extreme times like these when the disconnection of markets from common sense, logic and rational valuation puts our Patience and Discipline to the test in an almost overwhelming way. Rest assured, a major tipping point is coming soon, perhaps even before the next edition of this newsletter.

Since the equity markets hit their crisis bottom in early March 2009, many investors have been waiting for the second half of the global debt hurricane to hit. This bias, based on then-recent experience, makes it difficult for many to ride an uptrend with patience…after having been burned significantly by market declines that mainstream “experts” said were simply not possible. It’s also incredibly difficult to forget the emotional and financial pain caused by the 2008-9 financial crises.

This memory of fear and loss has caused many investors to be more cautious than they otherwise would have been. If one looks at rise in the U.S. or Japanese equity markets, frustration can rise pretty quickly…no one likes to “miss out” on gains after experiencing major declines.

This is especially true when U.S. markets continue grinding higher without even a normal 8-12% seasonal pullback. Japan’s markets have now corrected more than 20% from their May 22^nd peaks, and the question many are asking is whether or not the U.S. and Europe will follows suit. Only time will tell.

For now, U.S. equity markets appear to have some more upside potential, based on pure momentum of the major uptrend, juiced by bullish rhetoric from the Wall Street mavens. There’s nothing rational, logical or fundamental about it. It’s just a trend in motion, which continues until it actually changes.

Experienced investors understand that the more that markets stretch to the upside beyond a sustainable level, the further and faster they drop. Anyone who has ever played with an elastic band understands this same concept – and the snap-back is always painful.

As surprising as this may sound, I actually expect that U.S. equity AND bond markets will yield average to above average returns over the next 25-27 months. This is not based on the excellent health of the U.S. economy, consumers, demographics or the sustainability of its massive personal and public over-spending. It’s based upon how much worse Europe and Japan are in these and other matters.

In all situations, it’s fundamentally about CAPITAL FLOWS. Investment capital always moves to where it perceives it will be treated best. Capital (money) is merely one form of energy, and when massive amounts of energy flow from one area to another, it causes massive changes in price. Departing capital leaves behind chaotic price declines. Arriving capital creates massive rises in prices. Think of how tides affect boats of differing quality and size.

This prediction of positive returns in U.S. based investments – including the $US – over the next couple years does not mean we’ve seen the end of market volatility because we’ve returned to “normal times” again. On the contrary, these massive shifts in institutional investment capital will serve to significantly increase volatility for short periods. This volatility will scare away even more retail investors near bottoms, leaving the gains there for disciplined big-money investors, whom I refer to as “the elephants.” Always follow the elephants, but don’t try to anticipate their movements – one misstep can be disastrous.

If things play out as our research sources have predicted, we’ll first see European bond and stock markets roll over and tumble, causing short term shocks everywhere else. Perhaps this starts in early August, with rising resistance by German citizens in respect of supporting their less-disciplined Euro comrades? Angela Merkel tries for re-election on September 22, and European banks are woefully vulnerable to the potential write-downs of the European bonds which they hold as Tier 1 Capital.

In 2014, perhaps it will then be Japan’s turn to implode, triggering a financial tsunami of fleeing capital to U.S. markets? The Japanese government and central bankers are showing their desperation with extreme forms of Quantitative Easing/Currency Devaluation intended to re-inflate their flat-lined economy. Not surprisingly, they’ve created a bubble in their equity markets, with little effect on their real economy.

In the meantime, both Gold and Silver remain near their April 15^th lows, with little upward strength. As this is written, we are rapidly approaching major cycle bottoms according to the work of several of our trusted research analysts. Will we hold support around the low-mid $1,300’s or will that support break and we see a test to lower levels such as $1285 (Charles Nenner) or even $1,158 (Martin Armstrong)? If precious metals do sell-off in a big way we’ll avoid that sector until it shows signs of massive panic and major capitulation. We’ll know within a few short weeks…simply “follow the elephants” with risk controls in place.

In the meantime, the U.S. government is now being revealed – not just suspected – of being an intrusive predator upon the privacy of its own citizens. Ironically, the U.S. security agencies are re-enforcing the fears that led their country’s Founding Fathers to create the Second Amendment – the right to keep and bear arms. The sophistication and pervasiveness of their surveillance is mind-boggling and frightening, and that’s just what we know about so far.

When Republicans, Democrats and the mainstream media ALL AGREE that this level of intrusion is justified in the name of “homeland security,” and actively engage in character assassination of whistleblowers like Edward Snowden…there is a BIG problem. Is it any wonder that sales of George Orwell’s classic “1984” have sky-rocketed recently?

And over in the Middle East, the “justification” for the U.S. getting more actively involved in Syria’s revolutionary conflict is building. Could a full-out war against the Assad regime and its allies Russia and Iran (the latter of which just sent in 4,000 troops to support Assad) be a convenient distraction from all the scandals plaguing the Obama Administration and the hollowing out of Main Street courtesy of Wall Street? Wars are never entered without careful calculation, but only when public support has been raised to necessary levels. In my opinion, this one is only a matter of time.

Everything unfolds with time, so we remain vigilant for both danger and opportunity. Patience and Discipline are accretive to your wealth, health and happiness; Fear and Greed are destructive.

Andrew Ruhland of Integrated Wealth Management in Calgary

The intermediate corrective phase in North American equity markets remains intact. Short term strength provides an opportunity to reduce equity exposure, particularly in sectors that have a history of moving lower during a summer corrective phase. These sectors included industrials, consumer discretionary, materials and financials.

Selected sectors are setting up for seasonal trades this summer including fertilizers, energy and gold. They already are showing signs of outperformance relative to the S&P 500 Index and the TSX Composite Index. Stay tuned for special sector opportunities as the summer progresses.

Equity Trends

The S&P 500 Index fell 16.65 points (1.01%) last week. Trend remains up. Resistance is at its May 22^nd high at 1,687.18. Support is at 1,598.23. The Index remains below its 20 day moving average, but bounced once again from near its 50 day moving average. Short term momentum indicators have declined to neutral levels.

The TSX Composite Index fell 185.94 points (1.50%) last week. Trend remains down. The Index remains below its 20 day moving average and completed a “Death Cross” when its 50 day moving average fell below its 200 day moving average. Tech Talk is not a believer in the Death Cross indicators, but other technical analysts are talking about it. Strength relative to the S&P 500 Index changed from neutral to negative. Technical score based on the above indicators changed from 0.5 to 0.0 out of 3.0. Short term momentum indicators are oversold, but have yet to show signs of bottoming.

Percent of S&P 500 stocks trading above their 50 day moving average fell last week to 59.60% from 67.80%. Percent remains in a downtrend from an intermediate overbought level.

Percent of S&P 500 stock trading above their 200 day moving average slipped last week to 88.20% from 90.60%. Percent remains in a downtrend from an intermediate overbought level.

Bullish Percent Index for S&P 500 stocks slipped last week to 81.20% from 82.00% and remained below its 15 day moving average. The Index continues to trend down from an intermediate overbought level.

Bullish Percent Index for TSX Composite stocks fell last week to 59.41% from 62.76% and dropped below its 15 day moving average. The Index has resumed an intermediate downtrend.

Percent of TSX stocks trading above their 50 day moving average fell last week to 31.80% after briefly reaching a low of 24.69%. Historic data shows that the TSX Composite Index frequently bottoms on a recovery by Percent from below the 25% level.

Percent of TSX stocks trading above their 200 day moving average fell last week to 42.68% from 46.86%. Percent continues in an intermediate downtrend.

……read so much more HERE including 44 more charts. 

In his 36-year career, Michael Ballanger, director of wealth management at Richardson GMP, has seen good markets and bad. As a true contrarian, he sees opportunity in the undervalued precious metals assets and lauds George Soros’ recently reported large gold-related positions. In this interview with The Gold Report,Ballanger discusses market sentiment and some companies that he expects to take off when the market turns.