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Weekly Market Update 5-10-17

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Disclaimer: The informationcontainedon thisnewsletter is formarketingpurposesonly. Nothing contained in thisnewsletter isintendedtobe,norshallitbeconstruedas,investmentadvicebyPhoenixCapitalResearchoranyofitsaffiliates,norisittoberelieduponinmakinganyinvestmentorotherdecision.Neithertheinformationnoranyopinionexpressedonthisnewsletterconstitutesandoffertobuyorsellanysecurityorinstrumentorparticipateinanyparticulartradingstrategy.Theinformationinthenewsletterisnotacompletedescriptionofthesecurities,marketsordevelopmentsdiscussed.Informationandopinionsregardingindividualsecuritiesdonotmeanthatasecurityisrecommendedorsuitableforaparticularinvestor.Priortomakinganyinvestmentdecision,youareadvisedtoconsultwithyourbroker,investmentadvisororotherappropriatetaxorfinancialprofessionaltodeterminethesuitabilityofanyinvestment.OpinionsandestimatesexpressedonthisnewsletterconstitutePhoenixCapitalResearch'sjudgmentasofthedateappearingontheopinionorestimateandaresubjecttochangewithoutnotice.Thisinformationmaynotreflecteventsoccurringafterthedateortimeofpublication.PhoenixCapitalResearchisnotobligatedtocontinuetoofferinformationoropinionsregardinganysecurity,instrumentorservice.Informationhasbeenobtainedfromsourcesconsideredreliable,butitsaccuracyandcompletenessarenotguaranteed.PhoenixCapitalResearchanditsofficers,directors,employees,agentsand/oraffiliatesmayhaveexecuted, or may in the future execute, transactions in any of the securities or derivatives of any securities discussed on thisnewsletter. Past performance is not necessarily a guide to future performance and is no guarantee of future results. SecuritiesproductsarenotFDICinsured,arenotguaranteedbyanybankandinvolveinvestmentrisk,includingpossiblelossofentirevalue.Phoenix Capital Research, OmniSans Publishing LLC and Graham Summers shall not be responsible or have any liability forinvestment decisions based upon, or the results obtained from, the information provided. Phoenix Capital Research is notresponsibleforthecontentofothernewsletterstowhichthisonemaybelinkedandreservestherighttoremovesuchlinks.OmniSansPublishingLLCandthePhoenixCapitalResearchLogoareregisteredtrademarksofPhoenixCapitalResearch.OmniSansPublishingLLC-POBOX2912,Alexandria,VA22301

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Wejustmadehistory.TheS&P500hasnowtraded10dayswithoutmovingmorethan0.2%.Thisisarecordgoingback125years.Putsimply,youjustexperiencedthesinglebiggestmarketriginoveracentury.For125years,themarkethasneverbeenpinnedbysuchcompleteanduttermanipulationasitjustexperienced.Itisabsolutelysickening.Wecoveredthismarketriglastweek.Thebarebasicsisthat“someone”stepsinaspikesthe$USD/Yenpairanytimestocksbegintobreakdown.WhothatsomeoneisremainstobeseenbutitislikelytheFedactingthroughaproxy(alargebankorperhapsevenforeignCentralBank).Whenthishappens,theentiremarkethasbecomeonegigantictradebasedonthe$USD/Yenpair.Ifthepairrises,preciousmetalsandbondsgethitwhilestocksarepinnedflat.Ifthepairfalls,stocksbegintobreakdownwhilepreciousmetalsandbondsrally.Belowisachartshowingthisdynamicinallthree-assetclasses.Asyoucansee,thisrighasoccurredonthreeseparateoccasionssinceelectionnight.Putsimply,“someone”hasbeenextremelyworriedaboutstocksbreakingdownandhasbeenresortingtogreaterandgreaterinterventiontoholdtheminplace.

Weekly Market Update 5-10-17

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Thislatestmarketrighasbyfarbeentheworstasstocksareforcedtoignoreworseningeconomicfundamentals(itisclearglobalGDPiscontracting)ascapitalforcedintoahandfulofTechStockstoholdthemarketup.ThebiggestcontributortothemarketholdinguphasbeenApple(AAPL),whichistrackingthiscurrencypairalmosttick-for-tick.Forallintensivepurposes,AAPLisnowthestockmarket.

Theproblemwiththisparticularrig(asidefromthefactthatit’sarig,notrealpriceaction)isthatitexportsdeflationaggressivelyintotheglobalfinancialsystem.Thesystemcanonlyhandlesomuchofthisbeforesomething“breaks.”Thelasttwotimes,that“something”wasOil,whichcrashed12%and15%inthespanoftwotothreeweeks.

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ThefinancialmediahasbeentryingtospinOil’spricemovesasbeingrelatedtoOPECorsomeotherfundamentalissue.It’snot.It’sbeingcausedbythe$USD/Yenpair.Yes,Oil,thesinglemostimportantcommoditytotheworld,hasnowcrashedTWICEbecauseofabjectmarketmanipulationtopinstocks.AtsomepointthemarketriggerswillHAVEtogiveup.Thedamagetothefinancialsystemandtheeconomyissimplytoosevere(againwe’retalkingaboutthemosteconomicallysignificant

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commodityintheworld).ThisisespeciallytruewhenyouconsiderthatOilpricesarecloselylinkedtoJunkBondsandOilcrashestendtoresultinsimilardistressinthosemarkets.Therampershaveachoice,lettheriggo,orpotentiallytriggeracreditcrisis.

Withthatinmind,Ibelievethatthismarketrigisnowending.The$USD/Yenpairhasslammedintomassiveresistance.

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BetweenthisandthedamagetoOilandpotentiallyhighyieldcredit,theramperswillhavenochoicebuttolettheriggo.Doesthismeanthateverythingwillsuddenlyreverse?Notnecessarily.I’mnotsayingthattheramperswillgiveuptherigovernight.Theymightverywelltrytomaintainithereandthereoverthenexttwoweeks.However,thelongertheychoosetoplaythisgame,thegreaterthelikelihoodofaREALevent(astockcrash)hitting.The1987crashwastriggeredbyasimilarmarketrig.We’renowgettingtothepointatwhichsomethinglikethatcouldactuallyhappeniftherigisn’tstoppedsoon.Basedonthis,Ibelievetheramperswillbegingivinguptheirschemeshortly.Indeed,todaymightinfacthavebeenthebeginningofthis.AsImentionedbefore,preciousmetalshavebeenhurtbadlybythe$USD/Yenramping.BetweenGoldandSilver,thelatterhashadtheworstofit,duetoarecordnumberofspeculativelongsliquidating.

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However,itseemsthatbothGoldandSilverarebottomingnowandpreparingfortheirnextwaveup.Thisisasignalthattheturnisoccurringandtherigisending.Regardingthisnextmoveinpreciousmetals,it’sgoingtobetheBIGone.Preciousmetalsinvestorsareanextremelyemotionalbunch.Thislatestdropinpricelevelshasturnedeveryonebearish.AndImean,“it’stheendoftheworld”bearish.

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Thisreactionisbeyondextreme.Goldisdownamere6%offitrecentpeaks.Inthelasttwoyearsalone,it’shadatleast10movesthatweregreaterinmagnitude.

Sowe’vegotextremebearishness…atatimewhenGoldisactuallystillUP8%fromtheDecember2016lows(thelasttimebearishnesswasatsimilarlevels).

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Thisisthesortofsituationthatleadstoragingrallies.TakenotethatGoldMiners,whichtypicallyleadGoldinmajorturns,havejustbouncedhardoffofcriticalsupport.

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Moreover,theGoldMinerstoGoldratiohasturnedsharplyup,suggestingaturnishappening.

TheSilverminerstoSilverratioisevenMOREbullishhavingbottomedaweekago.Oncewetakeoutthattopbluetrendline,thenextmovehigherhasbegun.

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Whenthishappens…

• Goldisgoingto$1340withinsixmonths.

• Silverisgoingto$28withinsixmonths.

• TheGoldMinersETF(GDX)isgoingto$29ifnot$35withinsixmonths.

• GoldminingjuniorsandSilverMinerswillberoaring30%+higherwithinsixmonths.AnotherkeyassetclasstowatchisOil.Oilhasbeguntobounce,butitNEEDStoreclaimitsbullishtrendline.Ifitcandothis,thentherigisfinallyoverandwe’reofftotheracesagain.

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Anothersignalwillbewhenthelong-TreasuryETF(TLT)breaksabovethebluelineandSTAYSthere.

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ThesearethechartsIamwatchingrightnow.IfIgetconfirmationthatthe$USD/YenrigHASendedandthemarketturnhashit,I’llsendoutanupdatewithsomenewtrades…butrightnow,thekeywordispatience.Irealizethisisfrustrating.I’mfrustratedaswell.We’venowhadtwoweeksofcompletegarbagepriceactionalljusttopinstocksflat.However,rightthismoment,todaythere’snoreasontoputnewcapitaltowork.Stocksasawholearegoingnowhere.TheS&P500hasn’tmovedmorethan0.2%inTENDAYS.Asforthefewcompaniesthatarerallying,I’mnotkeenon“pickinguppenniesinfrontofasteamroller”bymessingaroundforafewpercentagepointswhenit’splainasdaythatthesecondthemarketrigends,AAPL,MSTF,AMZN,andGOOGwillbedropping10%inthespaceofafewsessions.Sofornowweneedtowatchandwait.Whenthisrigends(andIbelieveitwillendwithinthenextfivetradingsessions)itwillbetimetoact.Thisconcludesthisweek’sweeklymarketupdate.I’mwatchingthemarketscloselyandwillissueupdatesasneeded.Barringanynewdevelopmentsyou’llnexthearfrommenextWednesdayinourusualweeklymarketupdate.Untilthen…

GrahamSummersChiefMarketStrategistPhoenixCapitalResearch

BestRegards,

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OPEN POSITIONS

STOCKS PORTFOLIO

BONDS PORTFOLIO

POSITION SYMBOL BUY DATE

BUY PRICE

CURRENT

PRICE

GAIN/ LOSS

NuveenMuni.Fund NVG 1/2/14 $13.12 $14.76 35% EmergingMarketBonds EMB 11/21/16

$109.82$114.38 6%

LongUSTreasuries TLT 11/21/16 $121.05 $120.48 1% Pricesasofmarket’scloseon5/10/17.Gainsincludedividends

POSITION SYMBOL BUY DATE

BUY PRICE

CURRENT PRICE

GAIN/ LOSS

RPXCorp RPXC 8/5/15 $15.48 $13.89 -10%

PeruETF EPU 12/7/16 $33.23 $34.05 3% AgriculturalCommoditiesETF RJA 1/12/17 $6.46 $6.26

-3%

ChinaETF ASHR 2/1/17 $24.98 $24.02 -4%

BrazilETF EWZ 2/8/17 $37.53 $38.58 3%

UtilitiesETF XLU 2/8/17 $49.35 $51.41 5%

PublicStorage PSA 3/23/17 $225.92 $208.92 -8% SouthwesternEnergy SWN 3/30/17 $8.15 $7.33 -10%

GulfportEnergy GPOR 3/30/17 $17.17 $16.46 -4%

ClearEnergyETF PBW 4/19/17 $4.06 $4.18 3%

SolarEnergyETF TAN 4/19/17 $17.20 $18.20 6%

USOilFund USO 4/26/17 $10.37 $9.86 -5%

BiotechETF IBB 4/26/17 $296.15 $291.89 -1%

Verizon VZ 4/26/17 $47.17 $46.38 -2%

ExxonMobil XOM 5/3/17 $82.70 $81.91 -1%

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POSITION SYMBOL BUY DATE

BUY PRICE

CURRENT

PRICE

GAIN/ LOSS

Gold 3/17/10 $1,120 $1,218.00 9% Silver 3/17/10 $16.23 $16.19 0%

GoldMinersETF GDX 10/5/16 $22.45 $21.93 -2% GoldMiningJuniorsETF GDXJ 10/5/16 $34.72 $30.94

-7%

SilverWheaton SLW 10/5/16 $22.59 $19.54 -13%

NewGold NGD 10/5/16 $3.88 $2.79 -28%

BarrickGold ABX 4/26/17 $16.92 $16.39 -3%

RoyalGold RGLD 4/26/17 $69.92 $70.49 1%

SilverMiningETF SIL 4/26/17 $34.44 $33.74 -2%

SilverStandard SSRI 4/26/17 $9.94 $9.42 -5%

PRECIOUS METALS/ MINERS PORTFOLIO

Pricesasofmarket’scloseon5/10/17.Gainsincludedividends*Averagepriceof$17.50and$14.97**Averagepriceof$22.83and$22.07***Averagepriceof$37.52and$31.92

SPECIAL SITUATIONS/HEDGES/SHORTS PORTFOLIO

POSITION SYMBOL BUY DATE

BUY PRICE

CURRENT PRICE

GAIN/ LOSS

FranceETF(SHORT) EWQ 9/16/16 $23.38 $28.76 -23% ItalyETF(SHORT) EWI 9/16/16 $21.56 $27.65 -28% Russell2000ETF(SHORT) IWM 12/14/16 $135.37 $139.21 -3% Apple(SHORT) AAPL 3/23/17 $140.92 $153.26 -9%

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CASH/ CURRENCIES PORTFOLIO

POSITION SYMBOL BUYDATE

BUYPRICE

CURRENTPRICE

GAIN/ LOSS

EuroTrust FXE 10/5/16 $108.80 $105.25 -3%

Pricesasofmarket’scloseon5/10/17.Gainsincludedividends

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POSITION SYMBOL BUYDATE

BUYPRICE

SELLDATE

SELLPRICE

GAIN/ LOSS

AmericanEagleOutfitters(SHORT) AEO 5/26/16 $15.36 1/31/17 $14.59 5%CliffsNatResources(FIRSTHALF) CLF 2/8/17 $10.15 2/13/17 $12.10 19%

Ambev ABEV 11/25/16 $4.96 2/23/17 $5.93 21%Cemex CX 11/25/16 $8.07 2/23/17 $8.69 8%CliffsNatResources(SECONDHALF) CLF 2/8/17 $10.15 2/23/17 $11.13 10%

Exxon XOM 9/24/14 $95.82 3/8/17 $81.28 -8% EnterpriseProductsPartners EPD 11/31/16 $25.93 3/8/17 $27.83

9%

NaturalGasETF UNG 2/22/17 $6.57 3/8/17 $7.11 8%

EmergingmarketsETF EEM 1/12/17 $36.60 4/10/17 $39.20 7%

BarrickGold ABX 10/5/16 $15.54 4/10/17 $19.04 23%

UraniumETF URA 6/8/16 $15.49 4/12/17 $15.90 9% Cameco CCJ 1/4/17 $10.69 4/12/17 $11.48 7% CoalETF KOL 1/4/17 $12.59 4/12/17 $14.51 15% SilverStandardResources SSRI 10/5/16 $10.30 4/12/17 $11.32

10%

RoyalGold RGLD 2/8/17 $71.50 4/12/17 $74.14 4%

SilverMiners SIL 3/15/17 $35.81 4/12/17 $37.60 5%

USSteel(SHORT) X 2/1/17 $31.97 4/13/17 $29.42 8% CopperMinersETF(SHORT) COPX 3/23/17 $22.64 4/18/17 $21.02 7%

FinancialsETF(SHORT) XLF 12/21/16 $23.61 4/26/17 $24.06 -2%

RECENTLY CLOSED POSITIONS