Rate inversion again as predicted, right on top of the line I drew. Definitely a potential for things to get ugly. Be careful if buying the dip. All cash right now, and if I buy in, it's daytrading only.
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Not surprisingly financials are still in the red today.
This could just be a double bottom, we'll see. Yields are getting ridiculously low, market expecting a rate cut.
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Here we go again....on my own, Goin' down the only road I've ever known
Anyways, inversion.
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Market is pricing in rate cuts for the next 3 years, I think the market drops after every Fed meeting until they signal a willingness to cut rates. The market has a habit of throwing hissy fits when it doesn't get what it wants.
The inversion doesn't look like it's going away this time.
I think that so many people are looking at this indicator that it won't be as reliable as previous performance. I really think we will see ATH again (maybe even 300) if trade talks are positive. Both countries will hurt, it may take time to realize this, but it'll happen.
hungry_hippo
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@MrMarketMaker, that's what they say every time. It's not a matter of if but when. It took 2 years last time, wondering if it crashes before or after the elections. China's not going to make a deal if the US wants to change their laws. I don't think Pumpkin Head and his team are going to fall for the same stall tactics again.
Other than Biden, all of the Democrats want to tie a trade deal with human rights violations against the Uighurs. That's going to make a deal virtually impossible. I would be surprised if China doesn't try to interfere with the elections because they know Biden's their only way out.
If the market makes an ATH, it's gonna have to do it without China.
MrMarketMaker
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@hungry_hippo, Yeah, my point being that it's going to be impossible to time when the crash is going to happen. I'm sure most of retail is hedged after the last crash, and even today they had time to exit positions at ~ 3% away from ATH.
I think a deal will happen sooner than later, but we'll see!