Today’s Trade Idea:Eco Data Alert – Swing Trading Hold & One Crucial Chart
See the full position lineup of our bucket 2 swing trading portfolio HERE
See the full position lineup of our bucket 3 investment portfolios HERE
Please join the Inner Circle and Market Rover conversation in our members Slack chat room
Eco Data Alert – Swing Trading Hold & One Crucial Chart
Between jobless claims, PCE and PMI data, this morning will be a full on avalanche of important data to chew through. As such, we are on swing trading hold this morning until this data passes.
Not to forget: tomorrow Friday we get the August jobs report…ahead of the US Market holiday (Labor Day) – markets are closed on Monday.
I came across the below chart first thing this morning. It shows the difference between the 30 year US mortgage rate and 30 year US Treasury yield. It’s noteworthy that this is now at a higher rate than during the tech bust, the great financial crisis, and the pandemic. Note also that it tends to mean-revert lower during a crisis.
Mean-reversion lower from here in that spread above would likely correspond with lower risk assets (stocks) as well as somewhat lower bond yields (across the curve).
Today’s Trade Idea: Eco Data Alert – Swing Trading Hold & One Crucial Chart
See the full position lineup of our bucket 2 swing trading portfolio HERE
See the full position lineup of our bucket 3 investment portfolios HERE
Please join the Inner Circle and Market Rover conversation in our members Slack chat room
Eco Data Alert – Swing Trading Hold & One Crucial Chart
Between jobless claims, PCE and PMI data, this morning will be a full on avalanche of important data to chew through. As such, we are on swing trading hold this morning until this data passes.
Not to forget: tomorrow Friday we get the August jobs report…ahead of the US Market holiday (Labor Day) – markets are closed on Monday.
I came across the below chart first thing this morning. It shows the difference between the 30 year US mortgage rate and 30 year US Treasury yield. It’s noteworthy that this is now at a higher rate than during the tech bust, the great financial crisis, and the pandemic. Note also that it tends to mean-revert lower during a crisis.
Mean-reversion lower from here in that spread above would likely correspond with lower risk assets (stocks) as well as somewhat lower bond yields (across the curve).
Chart