April 2, 2020

THE JOBLESS-CLAIMS REPORT IS OMINOUS, BUT THERE’S A BETTER EARLY WARNING INDICATOR FOR STOCK INVESTORS $JNK $DIA $HYG $DJIA $AAPL $MSFT $MU $AMD

THE JOBLESS-CLAIMS REPORT IS OMINOUS, BUT THERE’S A BETTER EARLY WARNING INDICATOR FOR STOCK INVESTORS $JNK $DIA $HYG $DJIA $AAPL $MSFT $MU $AMD

Last week we said investors should ignore the weekly jobless-claims report. It’s true that they were shocking, but they were already discounted in the market because the economy was effectively shut down.

This week we’re sticking to the same recommendation, even after the number of Americans who applied for unemployment benefits jumped by a record 6.6 million.

Instead investors should consider focusing on an early warning indicator. Let’s explore with the help of two charts.

Charts

Please click here for an annotated chart of the Dow Jones Industrial Average ETF DIA which tracks the Dow Jones Industrial Average DJIA.

Please click here for an annotated chart of a high-yield bond ETF HYG. 

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