Yield Curve Inversion! Is the Stock Market Crash Here? by Adam Khoo


hi this is Adam Koo here and if you’ve
been reading or watching the mainstream news you may be freaking out right now
because in the news all they are talking about is that the yield curve has
inverted and they are talking about a recession coming a stock market crash so
is there any truth to this right it’s a stock market crash it’s a recession
eminent so let’s look at the facts right now before we make a decision well first
let’s take a look at the news from yesterday right and again it’s all doom
and gloom from you know CNBC to CNN they all sings the end of the world right so
on CNBC is saying that the Dow Jones drops 800 points as Wall Street
suffers worst day of the year on recession fears the market sell-off was
a response to the yield curve inversion in government bonds right CNN says Dow
tumbles 800 points after the bond market flashes a recession warning which
again is the inversion of the yield curve in the Bond market all right
global stocks slide as bond markets send recession warning that’s on Reuters
and CNN says five of the world’s biggest economies are the risk of a recession
but of course you’ve got people like Janet Yellen from the previous Fed chair that
says well you know this yield curve inversion may not be a recession signal
this time okay now you can’t blame most retail investors from freaking out over
the news and selling in panic but should you sell in panic should you get out of
the market sell all your stock or should you buy more or should you hold let’s look
at the facts right now remember in order to succeed as an investor or trader you
never make decisions you never act based on emotions or panic you always
disassociate look at the facts and make your decision so let’s look at the facts
right now now first of all an inverted yield curve has correctly signaled all nine
recessions since 1955 and was only wrong once and the fact is that when the yield curve goes negative there’s a 90% chance of a recession starting within the next 17
months or so now that sounds really scary but I’m gonna explain in this
video why you should not sell stocks right now in fact you
even buy stocks right now so just hold onto your horses now first of all what’s
a yield curve for those of you who don’t know what a yield curve it’s a curve
okay that plots the yield which is interest rates against the time to
maturity of US government bonds or known as US Treasury bonds right so in a
normal you curve or normal situation it’s sloping upwards in this case
sloping up right where bonds that have a shorter time to maturity example the two
year bond commands a lower interest rate then a longer term bond like the
ten-year bond okay now this makes a lot of sense why
because obviously if you buy a long term bond it means you’re lending money to
the government in the long run you demand a high interest rate because your
money’s locked in for a long time right but if you lend money for the shorter
term you don’t mind a lower interest rate so that’s a normal yield curve an
inverted yield curve happens when it is the reverse now the 2-year bond commands a higher interest rate than the long-term 10-year bond so what this
means is now if you lend money to the government for ten years you get less
interest than lending money to the government for just three months or two
years okay so what causes this yield curve inversion and what does it mean
right now first of all how is yield calculated yield is also known as the
interest rate the yield is equal to the interest that you get right the interest
that you’re paid by the government divided by the price of the bond now
what happens is that when bond prices increase when the price of the bond
increases what happens that’s right the yield the interest rate you get drops
okay so what causes inverted you curve is that the long-term bond yield has been
dropping below the short-term bond what causes
the yield to drop is because the price of the long-term bond has been increasing
why because many institutions many people have been buying the long-term
bond and by buying the long-term bond demand has pushed up the price of the
bond and has caused the yield to drop and hence lower than the short-term yield
causing the curve to invert so what does it mean why I have been why have a lot
of people being buying the ten-year bond is because they are scared is because
they are fearful of a recession they want to lock in their money into a bond
which is a fixed interest so they buy the long-term bond causing the price to
go up causing the yield to drop and the yield
curve to invert so it’s a sign that people are scared is a signal of a
recession alright so basically if you take the 10 year interest right 10-year
yield and you minus you deduct the 2 year yield right if you deduct it if you get a
negative figure it means the yield curve has inverted if it’s a positive figure
10 minus 2 which means it is not inverted right and here’s the thing it
recently inverted guess what for just a few minutes it inverted yesterday for
just a few minutes right so let’s take a quick look right now
so this is the spread between the two-year andten year born which is
basically the tenure you – the two-year you and you can see that usually it is
positive okay now the last time which inverter was over here
it started the inversion in December of 2005 and that predicted the recession
that started in 2007 over here so what has happened now that when 2019 is that
the yield between the two and tenure which means that 10 year – the two year
has just turn negative okay but it only went negative for a couple of
minutes intraday yesterday but now it has actually gone back up again tonight
so in fact if you look at this chart you can see this the two year interests or
the you and this the ten year interest rate and as of now which is today’s the
15th right s off yes that is close you can see that ten-year is back above the
two-year so it has an inverter already right but the point is that this
guy the tenure went below the two-year briefly yesterday and that free people
are it oh my god and they sold so the first thing to not be so concerned about
is that it just went inversion for just a few minutes alright for it to really
signal a recession it has got to invert and stay inverter for a few months I can
see over here is stay inverted for about two and a half years but this was only a
slight inversion for just a few minutes alright so that’s the first thing to pay
attention to right unless it stays down there for many months a recession is not
gonna come right now even if it does stay down there and a recession is
coming is the you curve inversion a good way to time the market should we sell
stock right now right in response to me and the answer is no right
why do I know why shouldn’t we use this signal to sell well let’s take a closer
look right now now you can see that historically whenever the you curve
inverse a recession starts not immediately it takes a couple of months
for the recession to begin so going back to 1978 August the iewk of inverted
recession started January 1980 17 months later right you have again inverted
September 1980 recession started ten months later and so on and so forth and
most recently the you have inverted in December of 2005 and the actual
recession started in December 2007 which is about 24
months later so on average it takes about 60 months from an inversion to the
recession now at the same time the stock market doesn’t start going down only
when the recession happens in fact the stock market starts to reverse into a
downtrend a couple of months before the actual
recession because the stock market is a leading indicator of the economic cycle
the stock market tends to move three to six months over nine months a hit of the
economic cycle you know take a look at this table right here and you can see
again historically when the yield curve invertor the stock market started to
change its trend to go down only a couple of months later and it’s really
different from time to time so when the you curve inverted august 78 the stock
market started to plunge only 19 months later 19 months later there’s more than
one and a half years later of the market going up before he went down right and
most recently you can see that when the yield curve inverted in December 2005
when the stock market start coming down not immediately in fact the stock market
started to change the trend only in October 2007 which is 23 months later
almost two years later right so the lag time between the top of the market and
the you curve inversion is all over the shown all right sometimes it’s as short
as two months as long as 23 months and that’s why using the you curve to time
the time to get out of the market doesn’t make sense because is it 2
months later is it 2 years later right so how do i time the markets how do I
know is the best time to get out and the best time to get back in I rely purely
on technical analysis of price action or price trend so let me teach you right
now how I do it and how you can do it for your own portfolio so let’s take a
look at the last recession and the last inversion
US stock market crash see what can learn from it right so the last one happened
more than ten years ago and again the u k– of inverter on december 2005
so once the u k– of inverter when did a stock market actually reverse into a
downtrend and start crashing it started reversing only twenty three months later
in October or on on October 2007 over here when the market made a top right so
what does it mean it means that if you had sold when the yield curve inverted
over here guess what for the next twenty three
months you would have been out of the market you would have missed the twenty
five point six percent return on your portfolio alright so you can see that by
you know look at the U curve you’re not getting out at the best time so when
would you want to get out of the market or to protect your portfolio and the
answer is you want to get out or protect your portfolio somewhere around here
right somewhere around here just before the market goes into a bear market
before it goes into a severe downtrend and the question would be how would I
know that is going down I mean hindsight is 20/20 but at that time how would I
know that the trend has changed well really simple there are a few things I
use number one I look at price action which is the a patterns of price
movement I’ll use trend lines and I use moving averages I’m going to show you
how we can combine all three right now okay so first of all you can understand
that how do you define an uptrend again uptrend is defined as a pattern of
higher highs and higher lows right so an uptrend looks like that there’s an
uptrend right so the price makes a series of higher highs and a series of
higher lows so we call this a blue market and the
bull market reverses into a bear market when we see a change in the price action
from higher highs and higher lows it makes lower highs and lower lows
again let me kind of draw this out for you so this is a high over there that’s
a high it makes a higher high eunuchs a higher high it’s a law it makes it
higher low a higher low right and it makes the top right and from the high
iMix a lower high and a lower high so I’m always looking at a pattern of highs
and lows to see if the trend is still an uptrend or downtrend now take a look at
this over here you can see that this is a high right mix a higher high high high
high high high high high high higher low so as long as I see a pattern of higher
highs and higher lows I know that we are still in a bull market I stay invested
and i watch the stock going up the market going up now over here you can
see the market makes a top and from a higher high it makes a lower high a
lower high a lower high a lower high and lower low and lower low and lower lower
and lower low ok so from this pattern you can see a
shift in the price action now some of you may say but Adam sometimes it’s not
really clear right like for example you may say hey over here from this high it
may in lower high I mean a lower high so why isn’t that a Down trend right or you
know from over here he made a lower high over here or from
here it made a lower high in me yeah you know a lower high over there so how do
you tell right ok here’s my secret right ready secret number one you have to c4
lower highs in sequence only when you see four lower highs in a row it’s a
signal of a changing trend four in a row so check it out over here you can see
that is a high that’s a low high that’s only one right
from over here to here that’s only one from here to here that’s only one and
from here to here it’s one two and only tree we don’t have four in a row right
check it out one two two lower highs in a row we don’t have one row but check it
out from here we’ve got a high right we have got a lower high we have got a
lower high and a lower high then we have it we’ve got the first high one two
three and four that’s right so when you get four lower
highs in a row it’s a very high probability that the price action or the
trend is reversed and that is when you want to sell everything or to hedge your
portfolio using put options we’ll talk about in a while before the bear market
goes all the way down right so that’s the first thing I look at do I have four
lower highs in a row the second thing which I look at our what we call trend
lines right so this is known as a trendline where you can see the price if
you connect previous low points it’s kind of like a level of support where
the price is bouncing off the support right so we call that support support
support support support support now the moment it breaks the support it’s kind
of like as long as the car is on the road you stay in the car the moment that
car drives off the road get out of the car because the cars gonna crash down
the hill all right so you can see over here that the car has driven off the
road that could be a time to get out as well to sell everything or to hit your
portfolio right those of you understand packet analysis technical analysis we
know that when support is broken it becomes resistance right there over here
you can see this is the support is broken
and it goes up it becomes a resistance Kissel resistance and comes back down
again so this could also have been a time to exit when the support has become
resistance his the resistance reverses and you exit over there so that’s a
second method I use the third method I use is a simplest method using moving
averages now for those of you who have been watching my videos before you know
that to identify the big trends I use the 50 and 150 simple moving average so
the 50 moving average is the one in blue that’s the 50 moving average the one
here in blue 50 and the one in green is the hundred and 50 moving average okay
now the rule is pretty simple whenever the blue line is above the
green line and it’s sloping up its a confirmed uptrend a downtrend is signal
when the 50 crosses below the 150 in other words the blue line crosses below
the green line and both lines start to slope down now the slope is very
important some people think that okay the 50 crosses below the 150 is a
downtrend that’s not true if the 50 crosses below the 150 but the lines are
still sloping up that’s not a downtrend signal it has to be accompanied by a
change in the slope really important stuff alright so you can see that by
using the moving averages it can tell us again the change in trend so over here
you can see that this was a very clear uptrend why because the 50 blue line is
above the 150 green line so that’s a very clear uptrend now over here you can
see that there was a cross 50 crossing below the 150 right so would that have
been a sell signal yeah sure why not right so you could have for example
bought you know somewhere over here all right a lot earlier and you sold it
there and you have taken a very nice profit from the market right and the
moment you saw what happened it crossed back above again 50 up to 150 so you
would buy it back over here because that’s an uptrend signal right
so by back over here and over here what would you do that’s right fifty crossing
one fifty sloping down you would sell over there so that would be another
signal right so it could have bought there so there salt here get out before
the crash as long as the fifty remains below the 150 the trend remains down now
when would you buy back you buy back when again the blue line crosses back
above the green line and it starts sloping upwards so fast forward to about
one and a half years later that’s what would have happened right so you have
again cross over so everything over there all right let
it crash all the way down that was a fifty six percent drop during the
financial crisis it took about 18 months for the market to bottom in stereo nine
and over here when you see again a change in the trend fifty crossing above
the 150 sloping up you would have bought back over there when the SNP was at
about nine hundred fifty points and if you had held that all the way now the
SNP is about two thousand eight hundred points
alright so you can see that moving average is also very very powerful now
let me ask me and that which one do you use you use the price action use the
trend line use moving averages and the answer is this I use all three at the
same time right so when I combine all three I can define the markets with
precision now if you think that this is pretty powerful let me tell you that
this is the kindergarten stuff this why I teach kindergarten kids right for
those of you who attend my life wealth Academy program or taken my online
training you know that this is basic stuff right when you actually come for
my training I teach you even more powerful stuff of how you time the
market even more accuracy but for those of you watching this this is good enough
for you to you know get out at the right time and get back in in the right time
alright so let’s take a look at the charts right now so this is the S&P 500
and as of yesterday you can see that we have
a pretty big closed down yesterday right and big drop in the markets as if you
are panicking oh my god the market has collapsed hello and they don’t collapse
it’s just a small drop you can get over it right so you got to look at a chance
now again right now as of yesterday again we had the yield curve inverting
for the first time in a long time right well just a few minutes right
what’s the big deal anyway so the you cliff inverted there
do we sell well again let’s look at the price action are we making lower highs
and lower lows are we having for lower highs in a room no we are not right so
you can see that that was the highest point this is the lower high so we call
that as one week um there’s two and again not yet right we need two more
lower highs to signal a downtrend we’re not there yet
right now how about using the moving averages so let’s put in the moving
averages ready tada there we go alright sometimes it doesn’t
draw very well okay let’s go back there okay so based on the moving averages you
can see that yep the 50 moving average the blue is still above the green and
it’s still sloping upwards and the price is above the 200 moving average and yes
we are still on a pretty pretty clear uptrend right now right the trend has
not changed at least for the big picture right and if I can see that after
yesterday’s drop it is now finding a support at be 150 moving average right
now 150 the green line looks like a strong support bouncing off bouncing off
and bouncing off so it looks like is being supported right now so as of now
again we can’t predict the future I’m not a fortune-teller I can’t predict the
future but all I can do is to read the trend right uptrend we buy downtrend we
get out or we hitch our portfolio so for now we’re still on a major uptrend and
probability is that we should see higher prices going up but again anything could
happen right anything could happen could always break below and the 50
could cross below the 150 eventually signalling a downtrend a bear market and
yes that’s a time when well you could protect your portfolio by buying put
options in the CTS oh I could sell everything and buy everything back again
when the market bosses can do all those things right so I’ll talk more about
that in future videos at the same time if you’re picking the Life wealth
Academy program or attending my online classes you’re gonna learn a lot more
about how to manage individual stocks in your portfolio
now while the medium to long term trend remains are of course a short term trend
is currently down right now so to look at a short term trend I use a shorter
term moving averages like the 2040 exponential moving average which is over
here let me just put it in over there there we go so you can see let me just
zoom in a bit alright so this red and blue dotted lines are the 20 and 40
exponential moving average it’s for me to read the short-term trend so you can
see in the short term the 20 has crossed below the 40 indicating a short term
correction shot them deep or downtrend but the overall trend is still up so
what I do is when I see a short term downtrend yeah I’m holding on to my
investments because I know they’re going up over time but in the short term could
I make some money as the markets coming down yeah so what I do is I buy put
options or put option spreads so please learn how to use options so you can make
some extra income while the markets coming down while holding on to your
investment portfolio alright so let me give an example so the moment I started
to see the market correcting I started to buy some of these put options spreads
to make some extra income and to sell covered call options so so you can see
one of my portfolios overall I am long on the market right I’ve got long
investment investment positions but at the same time I also have got short
positions where I’m short the market so that means when a market goes down in
their shorts my short positions are generating
profits for me and although you can see my short positions
I sell calls against my stock these are selling cupboard calls and can see the
unrealized profit from these calls right these are put options which I just
bought about two days ago so I bought a few put options to generate the
unrealized profits over here in order to hit or protect some of my short-term
losses from the stop position so the stocks I only make go down temporarily
so you see a negative over there but by using put options and selling cupboard
calls it generates enough profit to cover the short-term drop in my
investment position so as a result you can see that for the year year-to-date
I’m still up about 20% for the year right I was up about 40% but because of
the correction down a bit to 20% but still positive for the year right and I
have to manage many portfolios and have to do all this for all my portfolios so
this is these are the things that I teach my students in our live classes in
our online classes how to manage their portfolios so they generate consistent
high returns with lorries and to protect themselves during a bear market so what
if this bull market really changes into a bear market and we go into a major
downtrend now I don’t think it’s gonna happen but you never know it could
happen now so if we go to a bear market what do you
do it depends if you’re short on trader like I’ve got a short term trading
portfolio you obviously will not take any more long trades in fact your treats
make hit the stop loss and you get out right and you you just take short trades
where you profit by going short the market now if you’re more for investor
or you got an investment portfolio like for me I’ve got this investment
portfolio what do I do well here’s the thing if you have bought
fundamentally good companies you don’t have to worry right so if you’ve taken
my value momentum investing cost you know that I only buy very good
businesses that are fundamentally strong so that I know that over time the
we’ll always go up so you don’t know where just hang on to it you know it’s
shot and turbulence you always go higher so for example what what are some of the
companies which are great companies like for example now by the way if you look
at this chart is the 15-year chart of the S&P 500 and you know they’re in the
long run the stock market always goes up it always goes up right so regardless of
short-term bear markets recessions crashes you will always go up and that’s
if you buy every single stop in the index but if you know how to select the
best companies you know that it’s gonna perform even better than the index right
so in the last 15 years for example if you had bought a great company like
McDonald’s you can see McDonald’s despite the recession and the trade war
it has done really really well right from 20 bucks to two hundred twenty one
dollars right and this is the last 15 years going through many crisis and
going through the financial crisis and this Amazon again for the last 15 years
again going through the financial crisis back in 2008 but from a hundred bucks to
now over almost two thousand dollars on Amazon right Oh Google alphabet right
again from ninety dollars or other 48 bucks from a low 48 dollars again going
through the financial crisis you just hold it you know in the long run it’s
now over a thousand dollars so if you own good companies no worry just close
your eyes hold it you go hi eventually right just just have the confidence
there you know companies will grow in the future but again in the short term
could you make some extra money while it goes down temporarily yeah you could buy
again selling covered calls or buying put options now you know nothing about
options do check out my free option videos on YouTube just go to youtube and
search for options trading atom cool good my playlists under my playlists
look for options trading find a mobile options find out more about the stock
market stop investing stop trading so much to learn for you to build your
portfolio so I hope you’ve learned something over here do subscribe to more
videos or check out my websites for more information about our training programs
Adam Koo I’ll see you soon made of markets be with you hey if you like this
video do remember hit the subscribe button if you like to find out more
about my online professional training courses like the professional forex
trading course value momentum investing course professional stock trading course
or professional options trading course go on to Piranha profits calm and learn
to trade like a professional and generate income from anywhere in the
world if you’re in Asia like to travel to Asia
check out wealth Academy global com where I teach people live in my wealth
Academy programs so may the markets be with you and take care and generate the
profits you deserve

100 Replies to “Yield Curve Inversion! Is the Stock Market Crash Here? by Adam Khoo”

  1. Adam Khoo, this time may not be the same in terms of lead lag between yield curve inversion and stock market correction. Because, there is big concern about US-China Trade war as well as global growth slow down with part of Europe already in recession. Earnings forecast is down and Central bank as opposed to previous cases have very litle ammunition left to prop up growth with Interest rate already at record low level. Any thoughts?

  2. Another excellent video from Adam – you are one of my primary sources regarding action on the stock market !

  3. Hi Adam –
    While looking at the historical chart, you said that you use 50/150 SIMPLE moving average while on the chart you actually used exponential moving averages.

    But while looking at the current chart you did actually use simple moving averages 50/150.

    Was that a mistake in chart usage or what you spoke?

  4. Dear Adam khoon… I love the way you trade..
    I want to invest but before that I want to contact you….
    Please let me know your what's up contact number.. Or msg me on 00974 – 50306860 my Qatar Contact number for further discussion…
    Thanks.

  5. Adam you have talked about 4 lower highs over here but usually it's three, at 16:10 you have taken the peak as the 1st lower high. But this still works. You just have to mix up with trend line and moving averages like you said.

  6. gold had a bullish breakout two weeks ago..dji had a top formation possibility as well and the monthly pattern if it keeps going like this will be horrible..a milde correction will be equally big in points lost with the 2008 correction..

  7. THANKS ADAM! love your content. I wanted to ask about Hang Seng Index. DO you think its going to enter bear market? appreciate your educational information.

  8. once again there is a good possibility top formation on dji and many stocks are either at their highs or haning around the bottom of their intermedium channels..if there will be a correction for the top performers like hlt mrk or msft and a break of support channels for stocks like ba intc mu etc we will have a nasty downward move..we might test the previous low and even go through whitch is a lot of points down,,i would definately take protective measurements asap if i was invested in stocks..a few months ago i suggested to friends to get rid of ba at 410 and nke at 90..

  9. Some people knows stuff, but cannot explain, but not Adam, Adam Khoo is very vast, passionate, intelligent and willing to share knowledge. Above all Adam is very detailed and brilliant in the delivery of a valued related information more so, about stocks and stocks related subject. I only know of another person who is very passionate about helping people which is Tony Robbins

  10. If the Chinese keep dumping US treasuries. It won't mater if the stock market goes to a million as the value of the USD will loose value and the confidence of the rest of the world to trade in it.๐Ÿ˜‰ So you keep investing in the market hopefully all your earnings you can use for toilet paper.

  11. This video is gold thxs a lot Adam ๐Ÿ™๐Ÿผ๐Ÿ™๐Ÿผ๐Ÿ™๐Ÿผ๐Ÿ™๐Ÿผ๐Ÿ™๐Ÿผ๐Ÿ™๐Ÿผ๐Ÿ™๐Ÿผ๐Ÿ™๐Ÿผ๐Ÿ™๐Ÿผ๐Ÿ™๐Ÿผ๐Ÿ™๐Ÿผ๐Ÿ™๐Ÿผ

  12. I'm starting to invest now in the American Stock Exchange and I wonder if you can help me. How I can invest in Gold at NYES

  13. one last run up before a dramatic drop. forecast by contrarian advisor from seekingalpha. on the 1-5yr horizon he's been the most accurate of anyone i've ever read.

  14. Real headline of the day — "Greatest economy ever canโ€™t handle a little tariff for Christmas"…

    The bond markets are telling us that the cycle is ending with the central banks having failed to drive core CPI inflation higher. So Japanese-style outright deflation lies ahead at a time when western economies have piled debt sky high. 50% odds of a 50bsp rate cut in Sep? Stocks must fall further before Futures discount that the Fed will step in with an aggressive monetary policy move. US equity market volatility will have a high chance to rise further over the next month. August โ€“ September has been historically high volatility tight correlation period due to the absence of FOMC.

  15. Hey Adam, Has there ever been a yield curve inversion and no recession?.. not yet. I like how you say people shouldn't worry because the inversion can be 2 years before the correction, but you failed to mention when it happened 2 months or 3 months before. point is, this one isn't going to be no 2 years of delay its coming fast. We are historically overdue for a correction, everyone knows its coming, how fast and how hard is the real question.

  16. all trump supporters sayย  we love trump because of the great economy and the stock market .ย  Now what that he crashed it.ย  bye Bye trump

  17. I agree with your concept. Your videos are very precise on your subjects. You have great knowledge. You are man of ur field๐Ÿ‘

  18. Hi how do you know if the market is bearish take over or bullish take over like how does one get to understand it

  19. thanks man, thanks for sharing this counter-mainstream view of the markets. It helps making more informed, less pessimistic decisions. if it were for CNBC etc I would already have a hole in my bank account

  20. Thank you Mr. Khoo for a fantastic video! I am going to hold on to my investments because I'm looking at the long term and know that they will eventually go back up. No need to panic!

  21. Great video Adam!
    So much panic selling & overreaction in the market. Been buying the dips and scalping for 5-10% per trade. Tough market

  22. Now buy singapore low penny stock like heo leong is a good idea.earn big money shorting american last few day now should all slowly buy back and wait and see when they going to do. Still it start go down tread now.the end of down trend may take a while to stable.

  23. This time down people clever alot short together. So it will reverse before to going down or it continue to go up

  24. You obviously have no idea how to trade and have never seen a market crash before, you may want to re think your strategy before its too late, take a quick look at the monthly chart of the Nasdaq, NOTICE a HUGE shooting star followed by several engulfing candles, how about the head & shoulders topping pattern on the daily chart, The Dow Jones triple top appears to be breaking down, Gold price are breaking out to the upside, Jpy getting stronger as institutional money searches for safe havens, USA corporate debt at all time history highs, European banks and banking system is falling to pieces, US Dollar showing no sign of retreat even after rate cut. Yeh every thing is fine ๐Ÿคฆโ€โ™‚๏ธ its highly unlikely we will see new highs this year only sucker rallies and eventually a total collapse , This market is like standing in the middle of the road with a truck coming at you with no breaks and thinking it wont run you over ๐Ÿ˜‚ Good luck and happy trading

  25. In general good point of view with your technical analyse, but when you speak the bear market happens with death cross of the 50 with the 150SMA in the S&P500, and you show in the same graph it had happen in December, how do you justify that? It was a fail break?

  26. Damn man by coincidence came across one of ur videos a week ago and am addicted to ur infirmation. Thank you very much for everything u doing, u just changed my life god bless u

  27. People are easily swifted to hysteria or chronic distress, due to indicators which seldom they thoroughly grasp.

    First of all, ask yourself, is it possible for any bond to have NEGATIVE yield rate?

    Why?
    Simply because if you fear for smaller yield rate for longer-term bonds, why should you be fearing as such for the negative yield bonds.

    It's the same mind-boggling thought exercise for negative interest rate.

    Let that sinks in..

  28. Can someone recommend some good books about economy for self study? That also explains the basic necessary knowledge for stock traders and investors like the yield curve inversion?

  29. Hi Adam, the yield curve has inverted again and this is the third time. Is this considered a warning sign / signal?

  30. Mr Khoo, What can I say you're brilliant on youtube over all you're all most on the top. there is another lady she is brilliant as you are Thanks for keeping up.

  31. "the stockmarket is a leading indicator of the economy" – WRONG! Welcome in the new world of stock buy backs ๐Ÿ˜€

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