Blast Profits in the Eye of the Storm
5 Ways to Trade the Coming EU Collapse – And Make a Killing

by Shah Gilani, Editor, Wall Street Insights & Indictments

Dear Reader,

There’s something frightening beyond the haze that surrounds economic analysis these days. We simply can’t see through the thick clouds building and darkening all around us.

What we aren’t seeing is that the clouds themselves are coalescing and spinning.

What we aren’t seeing is that we are actually in the eye of the storm.

That’s why we sense that there’s something around us that doesn’t feel right. But the pigs aren’t flying because it’s eerily calm in the eye of any huge hurricane.

That will change.

Unless there are heroic efforts exercised jointly by politicians, government leaders and central bankers in the U.S., the European Union, China, Brazil and Japan, global economies and markets are going to be battered.

What we’ve seen so far is a gentle breeze compared to what’s coming.

There’s already been a lot of money made trading the violently shifting winds. We’ve locked in some spectacular winners in my Capital Wave Forecast. We’re sitting on more. And we’re going to continue to trade this volatility.

Here at Insights & Indictments, now you’ll get a chance to make money, too.

A lot of it.

This is about calling the shots and calling out who should be shot. It’s about what’s happening, why it’s happening, who’s involved… and how to trade into it, out of it, and around it.

And you’ll get it all for free.

I’m doing this because there are simply too many tricksters out there.

For decades, I’ve had to watch them greedily suck in innocent investors to backstop their own self-serving moneymaking schemes. And I’m sick of it. I think individual investors deserve the truth, and I’m finally in a position to give it to them straight. That’s my only agenda.

So here’s what I’m looking at right now. Follow me, and let’s see how all this plays out and how we can make the most out of the hundreds of trading opportunities coming our way…

The Swirling Hurricane Could Hit At Any Moment

This hurricane – it’s huge.

We’re looking at a global rout… a possible financial meltdown… countries imploding… blood in the streets…

Expect big bank failures. Some household names will have to be wound down here in the U.S. and in Europe. The question remains: Do regulators have time and resources to make this an orderly wind-down, or will the dam break and investors drown?

There are banks to sell now (all of them). And there are banks to short.

Indeed, some money managers – and a couple of publically traded investment banking houses – aren’t going to make it through this storm.

And I will name names.

On the other hand, some banks will actually survive and thrive after the flood.

When it’s time to buy them, you’ll know.

Elsewhere, there are a few stock-market darlings that are about to get hit with the ugly stick. We’re already short one of these high flyers in my Capital Wave Forecast. We’re making money on the trade, so join us if you like. I’m talking about Chipotle Mexican Grill (NYSE: CMG).

CMG, along with a couple of other stocks, is about to get dumped big-time by several huge institutional holders.

This is about selling your winners when markets fall, so you book profits and have cash to buy fallen angels.

And there will be plenty of fallen angels…

Tons of great stocks are about to get even cheaper. Big-name outfits that have been sold hard since the end of July will see capitulation selling when the dam breaks.

But boy, when that happens, are they ever going to be good deals. I’m talking about big fat dividends followed by lights-out appreciation in just a couple of quarters.

And then there’s Europe…

It’s going to implode into a black hole.

At the Capital Wave Forecast, we’re short the euro and long the dollar to capitalize on the European Union’s slippery future. Join us. Buy the ProShares UltraShort Euro (NYSE: EUO) and the PowerShares DB U.S. Dollar Index Bullish (NYSE: UUP). Soon we’re going to get short more names… and even whole countries.

Then, eventually, out of the European darkness, two countries and two dozen companies are going to skyrocket. I’m all over them. So keep reading. And when the time is right, you’ll know who I’m talking about and how to play their takeoffs and moon landings.

We’re about to see something happen in commodities, too – something that’s never happened before.

Several will collapse and expose who’s been stockpiling them. When that comes out (I know two gigantic players already caught in a vice and leveraged to the hilt), not only will these commodities open “limit down.” They’ll continue to trade limit down for days.

It’s going to get ugly in the pits… and even worse for a couple of ETFs that you won’t want to touch with a 10-foot pole.

We’ll short them, too. So don’t worry.

And after the bottom falls out, starting late in the fourth quarter and into the first and second quarters of 2012, you will have a handful of life-changing opportunities to load up on some of these commodities. They will go on to hit new highs in 12 o 24 months.

Now let me give you two more Cs…

I gave you commodities. The other two are China and commercial real estate.

We’re already short China at the Capital Wave Forecast… and up more than 170%. But I think there’s more – maybe a lot more – in that trade. We will be taking more positions on China’s woes, which are just now coming to the surface. I’ll pass a few of them on to you here.

As for commercial real estate, it’s about to roll over.

If we double-dip here in the U.S. – and if it’s a deep one, and the need for liquidity becomes pervasive, which it will – commercial real estate is going to do what residential real estate did starting in 2007. There’s no question.

How will we play that? Who are the folks to watch? When will it be the right time to put on trades? Stay tuned.

Insights & Indictments is my heads-up to you. You’ll stay on top of what’s happening… and who’s making it happen. There are no gloves on in this arena. It’s bare-knuckle brawling and I’m giving you a ringside seat and a scorer’s card.

Welcome to the prizefight of your investment future.

Your first installment of Wall Street Insights & Indictments will hit your inbox in a matter of days.

Sincerely,

Shah Gilani

Shah Gilani
Editor, Wall Street Insights & Indictments

36 Responses to Blast Profits in the Eye of the Storm: 5 Ways to Trade the Coming EU Collapse – And Make a Killing

    • Ian Hicks says:

      Seems I might be late for this party…..5/1/12 , sadly I have a lot of Oz miners that would cost me dear to take those losses, I am about even on the FTSE and I have a broker in NZ. about 15-16% down in the last year, I have sold a small % down there , do I take that loss and sit on cash for now Shah ?

  1. Tim says:

    Shah thank you for all your reports. You are a great asset and for you to share all this with us means a lot to me. Have a great holiday season you and your family. T. Svendsen

  2. Roberto Dasso says:

    It is inevitable … US and European countries have all played too long feeding the deficit and hoping that the party can last a life long, but it will not. We are going into deep shit and we are all going to pay for not being responsable. Now some European countries are blackmailing Germany to approve an Euro emission (and the corresponding devaluation) to let them pay their devaluated debt and survive another round. But that play will cost them more than if they follow now what Iceland had to do before them. The country secured over $10 billion in loans from the IMF and other countries to stabilize its currency and financial sector, and to back government guarantees for foreign deposits in Icelandic banks. GDP fell 6.8% in 2009, and unemployment peaked at 9.4% in February 2009. GDP fell 3.4% in 2010. Since the collapse of Iceland’s financial sector, government economic priorities have included: stabilizing the krona, reducing Iceland’s high budget deficit, containing inflation, restructuring the financial sector, and diversifying the economy.
    This is what happened to their publicly traded shares: (4000% drop in value)
    $1.128 billion (31 December 2009)
    country comparison to the world: 78
    $5.557 billion (31 December 2008)
    $40.56 billion (31 December 2007)

    So I guess we must be prepared to see the same picture again but in a bigger scale.

    best regards

    Roberto Dasso

    source: http://www.theodora.com/wfbcurrent/iceland/iceland_economy.html

  3. Dimi Chakalov says:

    Shah (i) believes that the Eurozone is “going to implode into a black hole,” and (ii) suggests to “short the euro and long the dollar to capitalize on the European Union’s slippery future.” Regarding (i), there’s Plan B, after which the Eurozone could emerge much stronger in 2013. As to option (ii), I’d suggest to play safe by shorting both the euro and the dollar next year, and buy Gold from ZKB in Zurich: if you can’t hold it you don’t own it. Just don’t try to “hold” it in the U.S.

  4. bob curran says:

    Shah, iam brand new to your newsletter site look forward to your upcoming investment ideas and many cold facts that the investor is going to face in 2012 . Happy Holidays bob curran

  5. C says:

    Shah ~
    Thank-you so much for all of your insight! How does ones one SHORT CHINA? Also ~ will you give sell signals?

    Thank-you again, these are very choppy waters. You are our Secret Santa! Merry Christmas! C

  6. Wim Wouters - Belgium says:

    We’re (I and my wife) in stocks for 20 years now- lost heavily in 2001, 2008. Tried to re-establish our portfolios usuing paid up advice from principally US sources. Learned to use options this year. Must admit we’re at a loss…We have large positions in what we believe strategic oil, shale gas, technology metals, rare earths, gold, stuff that ‘should’ hold out when all else loses value thanks to money-printing governments in US and Europe. Sounded reasonable. However just ike in 2008 when panic strikes ALL ‘might’ go down a huge black hole. So – Shall we sell our quality corporations now and risk to forego upside ? Geopolitical events in Iraq, Iran, Saudi Arabia might push oil over 150$/barrel, might hasten USA to push shale gas, and become self reliant.
    We could establish “stop” loss orders though this way in 2009 we got separated from our prime stock…what proved unnecessary a little later (double dip scenario !). We could buy protection through put options though this is a quite expensive play and not possible for lots of our Canadian companies.
    Therefore, dear Mr GILANI, we are very grateful you offer solid ground. Having subscriptions to many free and paid newsletters we still lost a lot of money over this fall. We as yet do not know how long to hold out on our stock and how best to ‘relocate’. Shall we buy into China plays ? Shall we buy reverse ETFs ? Shall we short stock. When then ? It’s not that we have a sentimental touch to our stock, though learning (to cope with losses) over 2 decades we do not wish to miss out on the next Intel or Microsoft. We feel that we’re going through exceptional times where our economies are growing into some life changing ‘revolutionary’ ways on how future communities will live and prosper.
    It’s very sad that “first” we”d might have to go through hell…which might cost us very dearly.
    We feel we’ll have to take a firm stand over the coming days, weeks. We feel somenthing terrible is “in the air”. We just read it from very professional and independent sources. However the kind of very expensive subscripitons we feel are out of bounds to our quite modest budget.
    Thanks for your precious help – We appreciate very much.

  7. Brian Riordan says:

    Shah:
    I am already shrort the Euro with EUO, so tomorrow I will ‘balance’ it with the same amount of UUP. I have been watching the USD and been wondering what to do. My heartfilt thankyous for your sincerity to us lowly and little investors. Many of will become traders under your guidence I am quite sure.
    Your new friend, Brian.

  8. Serge says:

    Shah,

    Thank-you for all your interesting information!

    I look forward to your upcoming investment ideas so that I can win back my losing money

    Serge

  9. Devram Shelke says:

    Thanks a lot for giving best article regarding current financial situation of prime world.This will be wonderful guideline for all investers & traders who are working with stock markets.

  10. Alex says:

    I respect Shah but since I’m from Europe I bet EU and Euro will survive. But the number of Eurozone (using EUR) countries will be reduced to possibly seven- ten from present seventeen and EU members will be less – fifteen-twenty instead of present twenty five.

  11. Alan says:

    Dear Mr. Shah Gilani, I am one of the guy who has paid a lot to learn and despite sustained efforts i have been losing more than normal in the last year. So, you objective to helkp guys like me and help them for free is real king of you. But until, I see and make some return on your recommended investment, I am like Thomas in the Bible, I need to wait and see. Although you have my full support so I will surely try a few of your recommendations.

    Best regards,

    Alan Colter

  12. Tony Plumstead says:

    Dear Shah,

    Thanks for your on the spot reporting even for us living in Europe with the Euro it’s expensive
    the same for ALL Euro countrys price’s are rocketing out of order, we can see the crunch coming
    soon.
    Thank you
    Tony.

  13. José says:

    No doubt you are good times and as you say you have to be in tune to be in the market place. Thank you very much.

  14. Buz says:

    Shah,

    I assume you have read the most entertaining and insightful “Money Game” by “Adam Smith”.

    Someone needs to write something similar about the more recent decades. I think you could do it.

    Can I pre-order a copy ?

  15. Serge says:

    I don’t know good “Short System “.. I think it is possible to win. Losing much money is also possible?

  16. nevio Kovacevic says:

    Dear Mr.Gilani
    Do you think the Euro zone will survive as it is within the
    next year.
    Thank you
    Nevio Kovacevic

  17. Mdshofiqul miah says:

    Thank you Mr Shah Gilani I Know Your Good Advice& Good information give me knowledge again and again Thank you

  18. Darryl says:

    Here are in may and the predictions have not come to pass. Are we safe until after the USA election in November, Shah?

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