I just updated the hedge page at enjoytheride.world and we still have a little bit to go to put on the hedges, but I noticed that I’m now down to 50% invested in my sector etfs with aerospace, utilities, precious metals and energy dominated the categories still invested. All the others are now in cash and on down trends. The categories that are still hanging in there are all defensive plays in the stock market it would seem to me.
Over on the futures side of things, bonds continue to slide with increasing interest rates.
The homebuilder stocks are not having a great year either.
And corn prices are moving higher along with other grains.
Gasoline prices remain high along with all forms of energy.
So, let’s add it up. We’ve got the stock market looking sick, bonds sliding, higher food prices, higher energy prices and homebuilding stocks heading lower. Sure looks like a recession is maybe already starting.
Stay safe out there in trading land and enjoy the ride!
Tom there are cycle failures everywhere signifying more liquidation on equities ahead. 4315 $ES target still active for 40 day cycle projection. Thinking it goes much further, and breaks the 20 week cycle lows from March in the first 10 week wave.
My response to a sick stock market? Go play golf!