THE NEW DANGER SIGNALS FROM BONDS AND GOLD FOR THE STOCK MARKET BULLS $SPY $TLT $QQQ $SQQQ $DJIA $SMH $MU $AMD $NVDA $FB $AAPL $AMZN $MSFT

Twitter
LinkedIn
Facebook

THE NEW DANGER SIGNALS FROM BONDS AND GOLD FOR THE STOCK MARKET BULLS $SPY $TLT $QQQ $SQQQ $DJIA $SMH $MU $AMD $NVDA $FB $AAPL $AMZN $MSFT

There are new danger signals from bonds and gold for stock market bulls. Prudent investors would be wise to understand them.

Let’s explore the issue with the help of two charts.

Charts

Please click here for an annotated chart of iShares 20+ Year Treasury Bond ETF TLT.

Please click here for an annotated chart of S&P 500 ETF SPY.  For the sake of transparency, this chart was previously published and no changes have been made.

Note the following:

• The first chart shows an “up” move in bonds has become a parabolic up move.

• From the first chart, pay attention to the big up move shown by the last bar.

• As the first chart shows, the parabolic up move in bonds is subsequent to a steady, strong up move as shown by the trend line on the chart.

• Prudent investors ought to note from the first chart that, so far, there have been four extreme overbought conditions in bonds as shown by RSI (relative strength index) approaching 100.

• Typically when RSI approaches 100, a significant pullback in price is expected unless it is a strong up-trending market.

• Note from the first chart that there have not been any material pullbacks in bond prices after RSI approached 100 the first three times. That augured for a parabolic move up, and that is exactly what is happening now.

• Note from the first chart that the parabolic move up is on heavy volume.

• Bond prices move inverse to their yields. The parabolic up move in bonds means a parabolic down move in yields.

See also  PRUDENT INVESTORS WATCHING SEMICONDUCTORS FOR A SIGN OF A PULLBACK, GOLD HITS ALL TIME HIGH

• The second chart shows that The Arora Report gave four signals before the drop in the stock market.

• The four signals include short-selling Nasdaq 100 ETF QQQ or buying leveraged-inverse Nasdaq 100 ETF SQQQ, which goes up when the market goes down; increasing hedges to protect portfolios; taking profits on select ETF positions in our ZYX Global portfolio; and taking profits on a China ETF ASHR,  in our ZYX Emerging portfolio. ETFs on which profits were taken include semiconductor equities ETF SMH, technology equities ETF IYW, China internet equities ETF KWEB, frontier markets ETF FM, small-cap Japan equities ETF DXJS and large-cap currency-hedged Japan equities ETF HEWJ….Read more at MarketWatch.

A knowledgeable investor would have turned $100,000 into over $1,000,000 with the help from The Arora Report. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

Subscribe to 'Generate Wealth'

Free Forever

More To Explore

30 Day Free Trial

Cancel within 30 days and you owe nothing

When you take a FREE 30 day trial, you get access to powerful techniques used by billionaires and hedge funds to grow richer. You can continue to use these powerful techniques to grow richer even if you cancel your subscription. You come out ahead by subscribing no matter how you look at it.

A fortune is to be made from AI stocks.
Get the list of 18 AI stocks to grab your share of the profits — no cost to you.

A fortune is to be made from AI stocks.

Get the list of 18 AI stocks to grab your share of the profits.

AI is a $1 Trillion Market

Making A Fortune
In Artificial Intelligence

Golden Age of Artificial Intelligence