Why the Sell Off in Stocks Will Be Over Soon
The crystal ball is the US bond market, signaling inflation has peaked.
When I first started trading, I was fortunate enough to have met a retired pit trader.
He told me whenever he wanted to figure out “what was next”, he’d look to the bond market. I never forgot that.
It took me years to heed his advice, but now I follow the 10-year bond market religiously. To all you newbie traders, take this post to heart a lot sooner than I did on my trading journey.
What Bonds Are Telling Me About Stocks
The US Treasury market is the market for U.S. debt. If you buy a US Treasury bond, you become the government’s creditor.
I’m seeing major, major buy signals on U.S. bonds. Which means inflation might slow down.
If price holds here until the end of the week, this makes for a high probability trade set-up on bonds.
But what does this mean for stocks, and how can I take advantage of it?
Keep reading or upgrade to find out.