You Gotta See This…
The latest numbers for the ECRI’s Weekly Leading Index (WLI) came out a few days ago… and all I gotta say is that spread traders should be “licking their chops” with anticipation right now.
If you’re not familiar, the WLI is one of the most reliable indicators that forecasters use in determining economic growth (you can read more about it on my post here).
Of course, its not perfect. And, it certainly doesn’t guarantee anything…
But over the past 30-40 years, any time the WLI growth rate has fallen to -10% (or lower), a recession has followed with 100% certainty.
Over the past several weeks, the WLI numbers have been slipping, and traders have been watching with eager anticipation for that all important -10% threshold.
Well folks, we’re there.
The numbers came out, and the most recent report shows a -10.5% growth rate.
So check out this chart:
(thanks to livejournal.com for posting the chart)
The red line indicates that all important -10% level. Anytime the WLI line has fallen beneath it, a recession was right around the corner… which may mean that the US is in for a double dip.
This means that for traders in my All Star Membership Site, and others who know how to trade the downside…
It’s Game Time.
To best take advantage of the opportunities that are around the corner, make sure to Prepare yourself mentally. Stay sharp and ready for when the charts set up according to your rules…. and get ready for confirmation.
But also, Prepare yourself financially. Now is the time to have every bit of capital at your disposal so that when the perfect storm of opportunities come, you’ll be ready to take action.
Are you ready? Leave a comment below and let me know.
3 Responses to “You Gotta See This…”
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Hi Jeff,
I’m counting on this downside move starting now! Thanks for your insight and information. Very much appreciated.
How have we stayed up this long it just makes me wonder everyday. There is nothing that is being done politacally taht is going to help us but take us down more in my opinion. Who wants to hire people not knowing what healthcare is going to do. Pretty concerning what could happen here but if you keep your powder dry(having cash) there may be some buying opportunities galore out there. Now the problem will be what will the new low be and when do you get back in? I don’t have any idea how the Fed can come back in and reinflate this again so what can be done. We are going to have to find a new way to fund growth.
Bill… thanks for sharing. In one sense, it may be a bit concerning what could happen. All the more reason to be equipped with a trading strategy that will allow one to take advantage of these times, and set themselves apart financially!