Two Charts that Prove that Stocks are Falling All Around the World!

In the upcoming days (in FX University Daily), I'll be releasing an article that talks about how to protect your portfolio from the falling stock market. I hope you'll be looking for that issue in the upcoming days because I believe it could really help change the outcome of your IRAs and taxable stock brokerage accounts over the next 12 months.

However, today I want to show you the two charts that I'm looking at which tell me that "the crap is about to hit the fan" again! 

The first chart is of the Wilshire 5000 ($WLSH). Bet you can't guess how many stocks are in it? 5,000 right? You'd sure think so. As of January, it represented 4,033 stocks. So that's still one of the broadest samplings of stocks that you could get in the U.S.

I use this chart to see the "macro" 30,000 foot view of the stock market. This chart tells me how much Main Street is being effected...and right now, it doesn't look good.

In fact, on the chart below, you'll see that these 4,000+ stocks have broken below their 50 and 200 day simple moving averages and their uptrend line. You can look to the Slow Stochastics above the chart and see that another sell signal is nearing too! (Click on the chart below to enlarge it.)

The Next Major Sell Signal for U.S. Stocks is coming within Days to Weeks, but not Months!

However, that's the U.S. I mean, we know how crappy our economy is and how much our stocks probably rightfully deserve to fall as a result. But what about the rest of the world? They're probably alright, right?!? Wrong!

Check out the chart below of the Vanguard Total World Stock ETF (VT) below (which comprises over 2.700 stocks from developed and emerging economies from all around the world)! (Click on the chart below to enlarge it.)

My Gosh! The World's Financial Markets are Overbought & About to Head Lower!

Uh-oh! It's about to get real ugly, real fast according to that global chart above! Get ready to batten down the hatches and "get defensive" in your portfolios.

So look for that article over the next few days to hit your email's inbox. If you're not signed up, then make sure to go to and you will be able to view it there.

Sean Hyman
Editor, the Currency Cross Trader 

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