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Recession

Gold Rush Knocks Dow Jones Industrial Average Off Its FeetGold as a value asset continues to shine brightly, having reached a new all-time high near $2,600 on Monday, September 16, marking the 30th all-time high for gold prices this year, 2024. It is also noteworthy that the Dow Jones Industrial Average (DJI) to gold (XAUUSD) ratio is gravitating to ever lower values, while the time-tested indicator of a U.S. recession, based on the US labor market behavior signaling that one is imminent. Thanks to @chinmaysk1 and its full of worth open source script Recession And Bull Run Warning, that I truly believe is one of the best over many.
TVC:DJI
by Pandorra
Major Top Forming on SPXHello Everyone, a simple analysis of the RSI and current price action appear eerily similar to the 2022 peak. During the 2022 top we had financial experts and the media claiming victory stating that this bull market will continue, however we crashed soon after. Now the SPX is currently forming a topping process, this could be done or we could go a little higher before the bear market continues. It's clear that the SPX is making new highs while NDX and IWM fail to make a new high suggesting that this is the top. If this economy is doing so good, then why does the FED need to cut interest rates? The fed is cutting interest rates because we are either in a recession or we are very close to one. There is no such thing as a soft landing. The truth is we may already be in a recession and it wouldn't be declared until we are deep into one. If anything we are no longer going into a recession, we are going into a depression. Do not get lulled into a false sense of security like many others during the 2000 and 2008 top.
SP:SPXShort
by justaturboman44
Rate Cut Incoming. Buckle Up"What the Yield Curve and Fed Moves Mean for Your Next Trade." Historically, when the Federal Reserve lowers the federal funds rate while the yield spread is negative (also known as an inverted yield curve), it has often been an indicator of an impending market correction or recession. Let’s break this down: Historically, the bond market is a key indicator. Typically, long-term bonds offer higher yields than short-term bonds; This a healthy sign. When that flips and short-term yields surpass long-term ones, we get what’s called an inverted yield curve. This inversion signals that investors are getting nervous about the near-term economy. When the Fed then steps in to lower rates, they’re trying to stimulate growth, but it often comes too late. Looking back at past events: The dot-com crash of 2000: The yield curve inverted, the Fed cut rates, and a 35% market correction followed. The 2008 financial crisis: Again, the yield curve inverted, rates were cut, and the market saw a major downturn exceeding 50%. Going back even further, the same pattern held in the 1970s and 1980s. The big questions are: Why does this combination signal trouble? Will this pattern repeat itself again? While history tends to repeat itself, the data shows that when the Fed cuts rates with a negative yield spread, market corrections often follow. The inverted curve suggests tighter credit conditions, reduced lending, and lack of confidence, all piling on top of one another creating a recipe for disaster. Stepping back even further, we see that investor sentiment and the bond market tend to lead the way. Credit tightens, and companies cut back on spending. Another a perfect recipe for an economic slowdown and market drop. It's a familiar cycle. So lets buckle up.
TVC:DJIShort
by oh92
1
Market Indecision 2024! (Diamond Reversal)It has been an interesting few years in the markets. One of the hottest bull runs coming off the Pandemic lows to a 7 month bear market in 2022, followed by another epic bull run! We are now at a major decision point for markets. Up or Down! Recession fears abound while small caps are ready to pop waiting on rate cuts. The S&P as lopsided as ever with Mag 7 carrying the entire index for 2 years. Where are we going next? At every "potential" market top, the convergence between an ascending channel meets a potential descending channel forming a diamond shaped pattern. This pattern is the indecision point of any given market, but don't get bearish yet. A diamond reversal pattern can break in either direction, reversal or continuation . I have documented both the historical moves and the future potential paths. Remember that markets are not pre-ordained to do anything. They have to make decisions, and while you may have already decided your personal view, you can let the market confirm your biases one step at a time. React! Don't predict! 1) Halfway mark from 10/23 run to $6000 target -4/19 bottom starts 2nd leg -Bull Flag Consolidation 2) Diamond Reversal (Minor) -Rate cuts? Yes/No -And Why? Economy vs Inflation **Upside Breakout on 9/13 3) Rate cuts hinted for Sep FOMC -Halted 38% run from 10/23 -Halted 62% run from 10/22 4) Required drop to form minor/major diamond of indecision. -Blamed on Japanese Carry Trade* -Note the drop is perfect 78.6% retrace from 4/19 Run *Japanese Carry Trade margin collapse was instead caused by formation. **This was also opportunistic early rotation into treasuries. 5) Bullish rejection of minor diamond -Resilient CPI and Jobs provide cover for soft landing narrative. -Note the rejection confirms on diamond neutral line @ 38.2% 4/19 fib and healthy 20WMA bounce 6) Rate Cuts!!! -Rate cut odds are near equal between .25 vs .50 -Note a rejection confirms Double Top -Breakout confirms $6000 7) Blow off top!!! -Note the identical pattern to 2022 top *The Ancient Trendline is based on a back-dated creation of the S&P 500 by Standard & Poors as the index was founded in 1957 8) Bullish Ascending Channel starts in Jun-Oct 2022 -A short break here confirms new bearish descending channel and major diamond reversal. -This will be your bearish hint towards bearish 2025 but don't short yet!! -No break confirms ascending channel but EOY will give one more opportunity for a break. 9) End of Year typical Tax Loss Harvesting, Santa Rally, etc. -Unlikely to see a bullish breakout here -If Continuation occurs, it will be Jan into Feb 10) Last chance for Bears! -Need bearish breakdown to confirm both diamond and descending channel 11) Descension confirmation marks several opportunities on path down for bullish break outs -Initial Support @ $4800 (20% drop from top) -Secondary Support @ $4450 (25% drop from top) -Massive Support @ $4144 (30% drop from top) Best of luck in 2025 whatever you decide! Game on!
CBOE:SPX
by jasonchristy
4
Is Gold signalling a crisis? Gold is going parabolic and typically that doesnt mean a good thing. Now there are many reasons this could be rallying and likely a combination of the few. - Fed Rate Cut - Geo political tension - Weak Fiat currencies - Currency Crisis - Weakening economies In a time where gold enters these monthly extreme RSI moves it typically signals a good time to start trimming. Gold usually goes through a multi month correction but this could also spill into other asset classes. As the steepening effect on the 10y/2y finally was confirmed today, large macro implications could follow and this is exactly what Gold confirmed this week.
TVC:GOLD
by Trading-Capital
The 3-way of Economic Nightmares.I recently had a discussion on X, with regard to the Forecasting ability of High Yield Spreads. I was making the claim they do possess Leading Indicator qualities, while a gentleman took the other side of this debate. To illustrate my views, I've put together a chart of FedFunds Rate, Unemployment Rate, and said High Yield Spreads. This chart shows the last ~28yr of the above mentioned series, and how they "play" with one another. A) Shows the period leading into the "DotCom" Bubble. We see High Yield Spreads rise first - Leading the other two data series. In a Coincident fashion, FedFunds then rolls over, while Unemployment shoots higher. A successful "Forecast" by High Yield Spreads of the impending Downturn/Recession. A successful Leading Indicator. B) Shows the period leading into the "GFC". We once again see High Yield Spreads rise, this time SHARPLY, albeit with much less "lead time" than the previous example. As with example A), FedFunds and Unemployment then begin their inverse (to each other) dance. Once again showing High Yields Spread giving us that Advanced/Leading warning that things were getting fragile in the economy. A successful Leading Indicator - with admittedly less warning time. C) Shows us an outlier in this analysis, and for good reason. We see our 'significant' rise in High Yield Spreads, but what we do NOT see, is FedFunds and Unemployment doing their typical dance. Unemployment continues to head lower, while FedFunds begin to rise - the OPPOSITE of what they did in the prior 2 examples. D) Shows the period surrounding Covid. Once again High Yield Spreads shoot up in a dramatic fashion, warning bells should be going off in markets. Much like 2 of the previous 3 examples, FedFunds had also been in a "hiking" cycle. And right on cue, Unemployment skyrockets; completing our 3-way from Hell. We now find ourself in E). In the Oval we see our significant rise in High Yield Spreads, but this is accompanied by rising FedFunds, so we do not have our "danger" signal. Unemployment also remains low. We now however see High Yield Spreads beginning to turn up, with talks of Rate Cuts to FedFunds, as well as Unemployment rising. History may not repeat, but it does often rhyme. Are we starting to see warning signs flashing? Only time will tell, but as stated in previous posts... It's definitely not a time to be leveraged, or riding on large gains you haven't secured. TLDR; High Yield Spreads followed by Fallings FedFunds and Rising Unemployment = Market/Economic Stroke. As always, good luck, have fun, practice solid risk management. And thank you for your time.
FRED:BAMLH0A0HYM2
by mrjones2020
Is oil signalling a recession? Oil has really started to free fall. The death cross on the daily chart has occurred. this is where the 50 MA intersects with the 200 MA in a downtrend. This often implies more downside to the medium and long term but is often a great short term long signal. Usually when you get this signal the market makers bounce the stock or commodity a bit before taking it lower. We are hitting a massive multi year trend line going back to 2022 that should act as some support. XLE looks ready for 1 more down leg before a swing tradable low is in. Energy does have a tendency to fall precipitously so understanding oil can keep falling if investors fear the worst or a recession.
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AMEX:XLE
by Trading-Capital
5
US2000 Selloff | Small Caps Looking FrailLot's going on in this picture, my apologies for all the noise. Consistent with the overall market and recently published indexes, I am looking for more downside in US Domestic small-cap stocks. If you thought or if you were influenced that this inflation bubble economy would persist forever, I advise you consider a different source of information. "Do your own research" does NOT mean, go find something that agrees with your preferences. Rather, #DYOR as the kids say, is an opportunity for individuals and teams alike to look deep within themselves and ask if they have what it takes to achieve: honesty, humility, and truth.
OANDA:US2000USDShort
by ChiefMacro
Thats two lower highs for NVDA...What is next??? NASDAQ:NVDA NASDAQ:QQQ TVC:VIX NVDA: A Looming Breakout or Breakdown? Nvidia (NVDA) has been on a rollercoaster ride lately, with its stock price exhibiting significant volatility. The recent formation of a lower high and a potential lower low suggests a downward trend may be in the works. A key support level lies around $98, marked by trendline support that held firm on February 21, April 22, and August 5. If NVDA breaches this level, it could signal a short-term reversal of the uptrend. Analyzing the 30-minute timeframe, we see a recent break below a bearish pennant, indicating further downside potential. If this bearish scenario unfolds, a price target of $85-90 seems plausible. Interestingly, this price target aligns almost perfectly with NVDA's 200-day Simple Moving Average (SMA). If the stock does indeed reach this level, it could present a compelling buying opportunity. However, the broader market may face challenges if NVDA's downward trajectory continues. Recent economic data, such as weaker job openings and rising unemployment, suggests a deeper market correction might be on the horizon. While the Federal Reserve is expected to cut interest rates at its next meeting, a larger-than-expected reduction could trigger market panic. The next few months promise to be exciting, and this period can offer opportunities for significant wealth creation. For now, I'm waiting on the sidelines, patiently observing the market's dynamics. Remember, Warren Buffett's recent moves are a testament to the importance of following the market's trends rather than blindly fighting against them.
NASDAQ:NVDA
by Average_Joe_Options
Mortgage Delinquencies About to Skyrocket"Financial Advisors" tend to be clueless about the overall health of the market and the economy. The "advisor" profession is laced with toxic narratives about "your goals" and "focusing on the long term" and "staying invested". They're clueless as to what is going on. As the recession sets in and the market collapses, we will see mortgage delinquencies soar. Remain patient, refrain from buying ANYTHING with a debt component (ie homes / cars). We will soon see a credit freeze, as banks and lenders dump their assets and borrowers fail to meet their loan covenants. This is the real deal, folks. Stay low and move fast!
FRED:DRSFRMACBSLong
by ChiefMacro