The Markets May Be Starting To Worry About Rates
https://www.zerohedge.com/markets/markets-may-be-starting-worry-about-rates
Currently, the money flow signals remain positive, but “sell signals” did trigger as of the close on Friday. While the money flow itself remains strongly positive, the “sell signals” continue to suggest downward pressure on prices currently. However, given the more extreme overbought and bullish conditions, there is a risk of a deeper correction over the next few weeks.
Importantly, as discussed last week, while we will certainly warn you of when our indicators turn lower, the problem remains two-fold:
- The indicators don’t distinguish between a 5% correction and a 20% drawdown; and,
- Secondly, the corrections often occur so quickly you don’t have much time to decide just how defensive you need to be.
In other words, it is often advantageous to pare risk by “leaving the party a little early.”