Flexibility

That is the key word this week. While we see the potential for higher markets, see our post from last week on the Big Picture, the SPX market is touching a level, 4550 that may provide a little resistance as we go into the employment report on Friday. As such our trading accounts are lightening up, keeping in mind that at close over SPX 4662 puts the market into a new realm.

The Inverted Yield Curve is the hot discussion point at the moment. Keep in mind the yield curve predictive ability is as good as the market’s ability to see the future. Here is the kind of official description:

Inverted curve

Historically, an inverted yield curve has been viewed as an indicator of a pending economic recession. When short-term interest rates exceed long-term rates, market sentiment suggests that the long-term outlook is poor and that the yields offered by long-term fixed income will continue to fall.