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Mediums:  The CR News Reports© is a copyright publication of Channeled Readings®.  The following predictions on the STOCK MARKET were channeled on May 10, 2011 directly from our “Higher Intelligence Source” and not from what we, the Mediums may think, reason, guess, analyze or anticipate from probabilities or trends. These predictions are not based in conspiracy theories or come from a doomsayer's slant. We provide Survival News Predictions to help you overcome any fear of the future you may have and empower you to prepare for what's coming...  This may be the year when you don't sell in May and go away. Markets currently are exhibiting a weak upward momentum. The bin Laden rally lasted only about as long as he did once the Navy Seals arrived. Sovereign debt overseas is still a big concern with the markets. And the government and consumers are over-extended, also worrying the markets.

Consumers aren't consuming at 71% of the GDP anymore and inflation in gas and food prices is eating into their paychecks…that is, if they still get a paycheck. Yes, some consumer discretionary stocks are doing well…like some clothing stocks and some restaurant stocks where people go and eat too much over-processed food. And stocks like Weight Watchers have been doing better because people are eating too much over-processed food. Maybe clothing stocks are doing well because people have to buy bigger clothes?  Maybe eating too much is what's keeping the market rallying?

But can we trust banking stocks with their hidden balance sheets or pharmaceutical stocks with a new toxic drug surfacing weekly? How about technical stocks because "technology is the future" and technology always leads us out of recession.  

The big tech names who were leaders going into the tech bubble haven't done much for the 10 years since coming out of that bubble. Banks and financials were strong going into the housing crisis, but will they regain strength coming out when artificial support runs out, their true losses are exposed, and the housing crisis goes on for 10 more years?  

There is a big distinction between an economic recovery and a temporary market rally. While news watchers may think all is well in recovery-land, investors should read between the lines and watch for the real risks that will kill their profits. 

We would ask our Higher Intelligence source to bring through their predictions and commentary on this and anything else they see as relevant to the Stock Market at this time.

  ... Go ahead with your predictions and commentary...  

Voice of Higher Intelligence:   The markets will be marked by increased volatility. Beware of big swings and playing the middle ground of stock charts. If you are looking to maximize your profits and minimize your risk only buy stocks that are trading above their 20-day-moving-average. Also, only buy stocks or go long on anything on days when the NASDAQ is trading above its 20-day-moving-average, as the NASDAQ will be a more steady market. We see the markets pulling back in June so be careful about being long on too many investments between now and the middle of June. Here is what we recommend to maximize your profits. Go long the DOW at 12,890, go short the DOW at 12,505. Go long the S&P at 1,370, go short the S&P at 1,328. Go long the NASDAQ at 2,888, go short the NASDAQ at 2,804. Look for stocks with good momentum. One way to pick them is stocks that had earnings that were up 70% or more in their most recent quarter. These are the big momentum stocks. Never put more than 5 to 10% of your investment capital into any single trade. 

 

Mediums: Please provide the Headline for this Topic.   Voice of Higher Intelligence:   Market Entry And Exit Points

 

Mediums: Can you see what it's going to be that will cause the markets to pull back in June?   Voice of Higher Intelligence:   Primarily more worries from Europe, as well as poor housing numbers, job numbers and consumer sentiment. The nervousness over retaliatory terrorist strikes won't help either. 

 

Mediums: How can consumer discretionary stocks do so well when consumer's discretionary cash is down?   Voice of Higher Intelligence:   They are treating themselves with a meal out or new clothes or taking the family on a short weekend driving vacation, but not spending on the larger vacations due to gas prices or airfare or hotel costs. People will still save up for that cruise or a bigger vacation every other year - that is if they have jobs. Also, many fast food restaurants are doing well because of cheaper menu items.  

 

Mediums: How can the stock market go up when consumption has gone down?   Voice of Higher Intelligence:    Much of the volume in the markets is the front-running of stocks by program trading and large traders moving in and out. It's not the retail investor moving the markets. 

 

Mediums: What do you see for the banks and the financial stocks?   Voice of Higher Intelligence:    As long as they receive almost-free money from the Fed and make big interest on it before they have to pay it back, they will continue to show good profits each quarter. It's the hidden accounting that will eventually bring them down when the support money and quantitative easing stops.  

 

Mediums: In last month's CR News Reports© on the Stock Market you said that it's time to invest in other markets - what markets?   Voice of Higher Intelligence:    Wireless communications markets in developing companies, not just the providers but the infrastructure companies. Also, oil and energy stocks in the BRIC countries and beverage and snack food companies who are expanding into foreign markets.

 

Mediums: Recap the most important points in your message today?   Voice of Higher Intelligence:  Our message is that it is dangerous to get caught in the middle of a stock chart. Watch for the buy and sell points we recommended.

Mediums: Why is this information timely?   Voice of Higher Intelligence:  This information is timely because people are looking to make quick profits and that is the time when they get burned. 

Mediums: Tell our readership the best way to apply this information to their life right now?   Voice of Higher Intelligence:  If you are a trader enter into new positions a third at a time.

Mediums: Thank you for your predictions and commentary on this topic