A recession is closing in
But it’s still too early to flip bearish
Bullish structure points to another leg up first
Quick thread 🧵
But it’s still too early to flip bearish
Bullish structure points to another leg up first
Quick thread 🧵
2/ While we have strong evidence that a US recession could be nearing
There’s strong evidence that a US recession is nearing:
- Yield curve inversion
- Labor market deteriorating
- Consumer weakening
There’s strong evidence that a US recession is nearing:
- Yield curve inversion
- Labor market deteriorating
- Consumer weakening
3/ But, there are still parts of the economy that remain resilient
Thus, we likely have a few months before a recession hits, allowing markets to rise further
Find all our 17 Active Trade Setups across 5 different asset classes at:
bit.ly
Thus, we likely have a few months before a recession hits, allowing markets to rise further
Find all our 17 Active Trade Setups across 5 different asset classes at:
bit.ly
4/ This resilience is also reflected in the S&P 500's price action
Despite recent volatility, key MAs are still pointing upward
Indicating that upside momentum is still intact
Despite recent volatility, key MAs are still pointing upward
Indicating that upside momentum is still intact
5/ If we look back at the 2008 market top, the MAs were initially pointing up
But began to curve downward as the S&P 500 fell below them
And the economy entered into a recession
But began to curve downward as the S&P 500 fell below them
And the economy entered into a recession
6/ A similar scenario occurred in 2000
MAs were upward sloping in mid-1999, showing strong momentum
It wasn’t until Sept 2000 that they started curling down
As a recession unfolded leading to a painful bear market
MAs were upward sloping in mid-1999, showing strong momentum
It wasn’t until Sept 2000 that they started curling down
As a recession unfolded leading to a painful bear market
7/ Recently, during the high volatility, many have turned bearish
But, it’s likely that there are few months left before stocks peak
We’re closely monitoring the market's momentum to see if it can maintain its current trajectory
But, it’s likely that there are few months left before stocks peak
We’re closely monitoring the market's momentum to see if it can maintain its current trajectory
8/ That’s the risk of flipping bearish too soon without any confirmation signals
There could still be significant upside potential if a recession doesn’t materialize until late-2024
There could still be significant upside potential if a recession doesn’t materialize until late-2024
9/ Our members are extremely well positioned for further upside
With names like NEE & GDX already up double digits
Get all our real-time Trade Alerts at:
bit.ly
With names like NEE & GDX already up double digits
Get all our real-time Trade Alerts at:
bit.ly
10/ Thanks for reading!
If you enjoyed this thread, please ❤️ and 🔁 the first tweet below
And follow @gameoftrades_ for more market insights, finance and investment strategies
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If you enjoyed this thread, please ❤️ and 🔁 the first tweet below
And follow @gameoftrades_ for more market insights, finance and investment strategies
x.com
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