Two Charts Every Investor Needs to See Today
Stocks continue to ignore what’s happening around us: 40 million unemployed, an economic depression, and societal collapse.
As I mentioned to you yesterday, the markets continue to focus almost exclusively on the Fed’s money printing.
It’s complete insanity, and extremely dangerous. Every day that this continues, the odds of a crash hitting the markets again significantly rises.
Now, this doesn’t mean that you should go out and sell everything today. But it does mean that you need to keep one eye on the exits, as I continue to warn.
A Big Move is Coming — Will It Be Up or Down?
Having said that, the S&P 500 rallied yesterday to test major resistance at 3,100.
The market is nearing the point of its rising wedge. A big move is coming, but it could go either way.
The Volatility Index (VIX) is telling us the same thing, but in reverse.
The VIX represents the premium investors are willing to pay to protect their portfolios from a market drop. When the VIX rises, it means investors are increasingly jittery. When the VIX falls, it means investors are increasingly complacent.
The VIX today is a falling wedge formation. This too is warning us a big move is coming, but it could break either way.
These two charts tell us a big move is coming for the markets. Will it be up or down? I don’t know. No one does.
The smart play is not to guess ahead of time. Let the market show you, then make your move.
Ignore those who tell you to bet the farm on uncertain developments. Focus on what the markets are actually saying.
There is always opportunity. Let that opportunity reveal itself, and then hitch a ride.
But be prepared.
Editor, Money & Crisis