We've seen some dramatic price swings in the market over the past few weeks.
And while many are hoping for a brighter (and less volatile) future, I wouldn't hold my breath.
You see, one of Wall Street's most reliable "fortune tellers" is pointing all signs towards an ill-fated future.
But that doesn't mean you have to fall victim to these wild market moves.
Here's how you can cash in on the market, regardless of what the future holds...
A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates. The most frequently reported yield curve compares the three-month, two-year, five-year, 10-year, and 30-year U.S. Treasury debt. This yield curve is used as a tracker for other debt in the market, such as mortgage rates or bank lending rates, and it is used to predict changes in economic output and growth.
And over the recent weeks, it has flattened out significantly – flashing strong signals that slower growth is ahead for the markets.
On top of this, the gap between the two-year and 10-year Treasury yields continues to get closer and closer to inverting. Now, inversion is when short-term rates are higher than long-term rates. This may not seem like much, but this inversion has happened prior to every U.S. recession over the last 50 years. And the spread hasn't been this narrow since just before the Great Recession.
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Now, if you've been watching the markets closely lately, you might have noticed that there has been some major sell-off action occurring. And this can be attributed to the current yield curve climate. Investors are becoming increasingly nervous and heading for the exit before the economic doom strikes full force.
But while this nervousness may be justified, many analysts are more concerned about investors overreacting.
You see, while the shorter end of the yield curve might be inverted, the more reliable part of the curve has not. And while it might have come close, close only counts in horseshoes. The yield curve is more like an "off/on" switch – there's really no in-between.
Regardless of what's to come for the market though, we've talked about this mass-induced fear of missing out (FOMO) that's currently plaguing the market. And we know better than to even entertain it.
When the markets are constantly rising and falling, it can be hard to decide when the "right time" is to buy into a stock. And this, paired with the "economic doomsday" – the FOMO becomes even more heightened...
But if I can give you any advice, it would be this:
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Do not chase the gaps, buy the news, or sell out of fear.
That's one of easiest – and most common – ways to lose your entire nest egg to market volatility.
And while it's true that there's no (actual) crystal ball out there to tell you exactly what will happen next, you can predict where a stock or ETF is moving.
Because when you back your prediction up with millions of data points and 112 years combined experience in software design, mathematics, and missile navigation... you can make some stunning (and profitable) discoveries.
Take my newest invention, Alpha-9, for example. After poring over millions of data points and reams of historical data, we not only discovered Alpha-9 could produce a double-your-money trade opportunity every day of the week...
We discovered, using historical data, that this part super-computer, part artificial intelligence, part quant-trading system strikes with near 90% accuracy.
The result? Well, if you had the benefit of Alpha-9 in just the last week alone, the data shows us that you could be $15,800 richer right now.
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The post Beat Wall Street's Most Reliable "Fortune Teller" With This Simple Step appeared first on Power Profit Trades.
About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.