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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts

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ajtj99
Lee Lichterman III
To: Jacob Snyder who wrote (58793)5/4/2022 11:51:51 AM
From: Jacob Snyder2 Recommendations  Read Replies (2) of 97327
 
Signatures of recessions:

1. S&P 500 below its level of 6 months prior
2. employment: total nonfarm payrolls growth below 1% year-over-year
3. GDP growth below 2% year-over-year
4. Treasury yield curve flat
5. Junk Bond Spread: widening of credit spreads on corporate debt versus 6 months prior
6. ISM Purchasing Managers Index below 54

Since I last reviewed this a month ago, #1 has now joined 4,5 in signaling recession, probably in 2023. PMI is declining, the latest GDP was negative. Of the 6 indicators, only employment is solidly bullish.

The price of copper is a sensitive indicator of the global economy. If it goes below the $4-5 channel, that would be very bearish.

Other indicators:
Inflation tradingeconomics.com
Fed balance sheet tradingeconomics.com
Copper schrts.co
Wage growth atlantafed.org
Consumer Spending tradingeconomics.com
Consumer Sentiment tradingeconomics.com

ISM PMI (reported monthly tradingeconomics.com):

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