| Why the "recovery" is stalling... and what it means for your money In this issue:
• Are we in danger of a DOUBLE DIP RECESSION? The risk factors are real … • Should the U.S. be issuing U.S. savings bonds in … Yuan??!! The head of China's second largest bank weighs in …
• The #1 WORST investment to own when inflation hits. Don't get caught with your pants down as the dollar plunges…
Dear Friend, Stocks traded very choppy with most of the indexes finishing down as investors take their cues from the relationship of the US dollar verses commodities.
Every few years Hill Air Force Base (here in Utah) puts on an air show where we get to see a number of different aircraft display their aeronautical prowess.
Three years ago I saw the show and it was something to watch. Especially seeing a F-22 raptor take off in a vertical accent but this year the Air Force did not fly these planes.
We did see F-16's and of course the precision marvels, the Thunderbirds, which made the experience a real treat for my family and me as one of the fun things to do this summer.
The stunt planes were amazing to watch as the pilots push their planes to the limits. They would also make vertical accents but as their upward thrust began to stall, their ascent would slow. Then the plane would hover, suspended in air--- then the plane would free fall and then, at the last moment the planes would pull out of the descent.
I can't help but see an analogy to what we are seeing in the stock market.
• In March the stock market made its vertical ascent in a massive short covering rally.
• April was still up but with less intensity.
• In May the ascent slowed considerably.
• And here in June, the market seems to be stalling out.
We see this loss of upward thrust in a deterioration of upward momentum, which shows up as negative divergence.
The Market is losing momentum …
For example, we see the loss of momentum in the McClellan Oscillator.
The big thrust was in March, but as you can see each oscillation has been with less and less intensity.
This loss of momentum is also showing up in the McClellan Summation Index too, as investors grow more concerned about rising crude oil prices and soaring mortgage rates. These pressures are growth killers. 
You can see the plane stalling here!
The Fed has a decision to make (they know they're in trouble)
They run the risk of a double dip recession if they allow crude oil prices to keep soaring and mortgage rates to climb.
The Fed has wanted a higher stock market to drive up bank stocks to raise capital so they have manufactured spin that the economy will see a robust recovery just around the corner. The consequence of this has undercut the US dollar, forcing investors to scramble out of the bond market in mass as no one wants to own bonds just before inflation takes off.
Bonds are the worst investment to own in a rising inflationary environment as the dollar plunges.
The Fed has to decide which is more important. Continue to crash the dollar or really support it in order to rein in a crashing bond market and soaring crude oil prices.
Is the short term more important than the long term? Politically it is suicide if they allow mortgage rates and crude oil prices to keep climbing.
It is time to back off. Remember who owns government bonds. Scare China away and you've got a big, big problem.
The head of China's second-largest bank has said the United States government should start issuing bonds in Yuan, rather than dollars, so this tells you the Chinese are growing very alarmed of policies that support a crashing dollar.
The Fed can't allow crude oil prices to climb to $80+ and gold to go over $1,000 without paying a very dear price. 
As you can see the dollar is finding support at these levels.
My sense of what is happening is that the Fed must now defend the dollar, bring down crude oil, support the bond market but at a cost to the commodity driven stock market. The longer they wait, the more damaging to the economy offsetting their fiscal initiatives.
We are at a very important crossroads.
Remain defensive. Get a FREE PREVIEW of the investing service
Peter Brimlowe of MarketWatch reports
"was one of the few letters to make money
during the Crash of 2008" These are critical times so I'm going to do something I've never done before. I'm giving away TWO trial subscriptions to help you protect and grow your wealth.
I'll give you a FREE 30-DAY SUBSCRIPTION my Stealth Stocks investment letter PLUS a FREE 60-DAY SUBSCRIPTION to my Stealth Stocks Daily Alert investing service where I keep you up to date every day on what the market is actually doing from a technical perspective which means you don't have to guess what the market will do.
In your monthly Stealth Stocks letter subscription…
o You get explicit "buy," "sell," and "hold" recommendations conveniently split into four distinct investment approaches … o You get safety with my Income Portfolio: Focused on growing your core nest egg by following the #1 rule of safe-investing – "Don't lose money" – Stealth Stocks Subscribers got out of the market right near the top before the financial crisis wiped out regular investors. In today's volatile markets you can't invest safely without Stealth Stocks. o You get my Growth and Income Portfolios: Low risk strategies designed to give you both capital gains AND an ever increasing current income …
o You get my Moderate Portfolio: If you're looking for capital gains first and income second then this approach is for you...
o Finally you get my Aggressive Portfolio: Where we focus on special situations signaling extraordinary windfall profits …
In your Stealth Stocks Daily Alert service you're getting the investment service recently rated in the top #10 by Hulbert's Financial Digest for our performance in the market. Because our readers are among the few investors who were able to completely avoid ALL LOSSES in the financial crisis and actually ended last year positive.
With your Daily Alert service you'll receive my market commentary each day after the stock market closes and discover the real reasons for market moves up or down … the behind the scenes players manipulating the market for their own gains by trying to manipulate you and I as individual investors … my top-rated Trading Portfolio that looks to take advantage of stocks on a tear...and you'll join the small cadre of investors who don't need to guess what the market is going to do because we measure what the market is actually doing – and invest accordingly.
Investors following our guidance have their nest-eggs intact and their retirement accounts safe. They don't get suckered in by bear market rallies or dead-cat bounces.
If you haven't been getting useful, actionable and accurate market advice I urge you to accept these two FREE SUBSCRIPTIONS.
After your FREE 30-DAY SUBSCRIPTION to my Stealth Stocks investment letter if you're as excited about our prospects together you can choose to continue your subscription. Normally annual subscriptions sell for $396 but you won't pay that – instead I'll give you more than HALF OFF and you can continue for just $179 – less than .50-cents a day.
Plus, after your free 60-day subscription to Stealth Stocks Daily Alert if you decide you want to continue receiving my Daily Alert service, you'll get a full 58% OFF the regular annual price. You can choose to get the annual subscription, which is normally $1,188 but today you get it for just $499 OR you can choose a monthly membership and take $50 OFF the regular monthly price of $99 – you'll invest only $49 a month. Just click here to accept your FREE PREVIEW of the top-rated Stealth Stocks Daily Alert service!
In either case to continue your subscription simply do nothing and your credit card will be billed at your special discounted rate. Of course, if you decide you'd prefer not to continue either subscription simply drop us an email before your free subscription expires and your card will never be charged a dime.
If you want it, I'll give you a FREE 30-DAY PREVIEW my Stealth Stocks Daily Alert investing service where I keep you up to date every day on what the market is actually doing. Warmest regards,
Dennis Slothower, editor
Stealth Stocks & Stealth Stocks Daily Alert
P.S. Be cautious about whose investing advice you listen to. Hulbert's Financial Digest, the only 3rd party ratings service of investment newsletters found 93% of them lost their readers money in 2008. Only 12 investment letters protected and grew their reader's money last year – I write two of them. Stealth Stocks Daily Alert is the top performer.
So please, accept this invitation to test-drive Stealth Stocks Daily Alert free-of-charge for 30 days.
This is a special offer from
Eastman Communications Inc.
PO Box 290708 - Brooklyn, NY 11229
Privacy Policy click here This is an email newsletter from Stealth Stocks, provided free of charge to our customers. You are receiving this newsletter from Stealth Stocks because, at one point, you signed up for a trial subscription, free report or other promotion to our sister publication Stealth Stocks. Stealth Stocks and Stealth Stocks, are general interest newsletter and not liable for the suitability or future investment performance of any securities or strategies discussed. Stealth Stocks and Stealth Stocks is published by Eastman Communications, Inc. As a publisher of a financial newsletter of general and regular circulation, we cannot tender individual investment advice. Only a registered broker or investment advisor may advise you individually on the suitability and performance of your portfolio or specific investments. Historical investment return examples given are hypothetical, and not to be taken as representative of any individual's actual trading experience. Eastman Communications, Inc. is the publisher of Stealth Stocks and Stealth Stocks. Copyright 2009 Stealth Stocks. All Rights Reserved. | 
