Bulls, Bears & Inverted Yield Curves – Oh MY!
Back in March we noted that the yield curve between the 3 month and 10 year treasury inverted in our alert service. Back then, we talked about how the market often rallies for a year or more after a yield curve inversion.
The perma-bears are having a field day all over social media and elsewhere online over the inverted yield curve and auto weakness which has been in place for years. Lower manufacturing PMI readings is also adding fuel to their fire.
Of course, they forget to mention that manufacturing is only about 10% of the US economy at this point. And the services PMI, which is a much larger portion of the economy, is still looking strong along with retail sales last month in the US.
They also do not mention that despite an inverted yield curve in the 2nd quarter, bank execs told us that lending went fine and profits were good overall.
Its easy to get too negative and miss out on great opportunities like many people did in December.
As always, the market indices and leading stocks will give us the clues we need to know when to get cautious and look for good short opportunities over the short-term.
Once we see signs of the next market uptrend developing, we then get more aggressive again with our long trades.
In the latest market update, I talk about how we know when to get cautious and more aggressive when swing trading. Enjoy!
Meanwhile, its been a great week of trading again for those using the Tradetobefree strategies.
After the big score on ROKU early this month, customers made money both long and short on KL and FLOW. Here is the swing trading recap and more opportunities we are looking at