The Yield Curve is Flashing a “things are getting better sign”

You may recall that a couple of weeks ago we pointed out that the first thing to watch out for will be the 2yr vs 3 mo yield curve, I.e. when the 2yr starts gaining on the 3 mo, that will be the sign that the FED has pushed the string on the 3 mo to its limit.

that happened late yesterday and is following through today. Also we see SPX has hit the 3860 stretch mark. The model is continuing to fill out speculative long positions in SPXL ETF. The dollar appears to be ending that big move that we pointed out some 19 months ago.

While all this is going on, the trends in the EV, Solar, Biotech, and Chip stocks continue to move in the right direction.

C

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