Timing the Markets with Consumer SentimentBusinesses and producers around the world always cheer when U.S. consumer sentiment is in the 80 to 100 zone, as U.S. consumers play a big part in the global economic ecosystem.
The United States remains the largest consumer market in the world, but since the pandemic, this index has not recovered above the 80 level.
Does it mean that, there is a risks economy to enter into a recession?
How can we use this index to time our investments and trades?
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UMCSENT trade ideas
University of Michigan Consumer sentiment indexPersonal notes of the leading economic indicator.
Any read below 60 is generally negative for the markets.
The last major read at this level was in the 08 fallout.
The most recent read is an all time low.
Incurs a Negative bias for the wider market.
However only a good read for durable goods.
Consumer Sentiment / Without Question - C R A S H Dead AheadThe Greatest Bubble in History is unwinding with fits and starts.
Economic Conditions Globally - within the lower 3% Historically.
Multiples for Equities - within the Highest 4% Historically in very
Real Terms.
Monetary & Fiscal Excess - The Greatest in History, bar none.
100% Assured:
Reality is brought to bare with the Consumer who is being squeezed
like a sponge, wrung out and left to dry up, wither and dustify.
During the 1929 Crash, it was the Industrial Centers of our Productive
Economy who observed the Level of Commerce, Euphoria and
Distended Prices... they Sold everything that was not nailed down.
It was not Wall Street - why would they end the Great Game of
Wealth Transfer. They would not.
The Public merely piled in and joined the Selling.
When Confidence fails, it is over for a generation.
That was then, from the early 1980s our Economy began to shift
to a Tertiary, Consumer-based arrangement.
Irrational behavior merely follows suit upon the False signals provided
via both Monetary and Fiscal Policies, provided the Drugs to imbue
speculations.
It has been the exact same throughout recorded History. Human
behavior and incentives never actually change.
The shift to a Consumer-based Economy was temporary. Great Wealth
was accumulated and squandered under the privilege of Dollar Senioarge.
Eventually, the dislocations become evident, often decades later.
Observe the Financial Environment, the final stage of Crazy is unwinding.
There is much further to devolve, there is no outcome that will be
tenable to the vast majority of Humankind.
All that is required is a loss of confidence in the "Systems" - we see
this is taking shape in the very Pillars which support the failing Systems.
We no longer have an Industrial Sector of Scope and Scale, but rather a
series of Financial Arrangements that are no longer sustainable by any
metric.
The Can Kick... it's ending - Sooner than later.
Wall Street follies at this juncture can and will be even more extreme,
count on it as there is nothing left but wild dislocations, absurdities and
further Lies, Corruption, and Greed to unravel.
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TV is missing a large amount of DATA, get it together TV.
Recently there have been a number of Prints @ 50. It is far lower
than the half-baked UMich Numbers.
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What has caused every Crash of larger proportions?
Sentiment, the Investing Public pulls the trigger and Exits.
Insider Sentiment Peaked in March and remains unreported past
April 2022.
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We will see a Crash unparalleled in our lifetimes.
It is approaching with absolute certainty.
Consumer Sentiment's Role in Long-Term Buying Opportunities Consumer Sentiment is just one tool for investors to use when choosing whether to buy, sell, add, or trim stocks. But it can be a very useful tool, especially when markets are heavily skewed in one direction as they appear to be today.
There have only been four (the three breaches during the 08 crisis I count as one) occurrences in the past when the U.S. consumer sentiment has dipped below the 57.40 mark. As we are currently quickly approaching 57.40 I have taken the liberty to map out the five-year returns of each of the four previous lows in consumer sentiment (assuming a buy-in during the month of the 57.40 breaches).
11/1974: 43.6% five-year return
04/1980: 76.02% five-year return
06/2008: 16.31% five-year return
11/2008: 81.33% five-year return
02/2009: 116.35% five year return
08/2011: 58.77% five-year return
Average nominal five-year return on the S&P500 since 1957: roughly 53%
Importance of these data? The takeaway here is that historically low consumer sentiment (sub 57.40) has in the past provided great opportunities for patient investors to enter long-term positions in stocks and yield abnormally high returns. Basing an investment decision on one economic metric is not an intelligent strategy, but using consumer sentiment to help time your buying position appears to be an effective method going off of historic price action.
Consumer Sentiment - 10 AM ESTThe 007s are back, we know full well what that means.
Gap to Trap the Safety Trade Baggies again.
They never learn.
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CDs - 3/6 Months @ 2.10 and 2.20, Yr @ 3.30, 4/5Yr @ 3.40....
If ya believe, load the woodshed.
Prior to making the same mistake for the 4t time, ask yourselves
one simple question - why are these not following the decline in
Yields?
For the gang who couldn't shoot straight - answers are never a
clear target.
We'll continue to take the Bond Ape's Bong Money.
Toke up Dino and crew, we're hunting you.
UMICH - CONsumer SentimentNo worries Mates and Shelia's - this is bottoming.
It's down under, so far down under it's Alice Springs
under with a dash of ET tossed in for good measure.
A "Turnaround" ?
Ozzy Man Reviews: What is a Turnaround?
search Youtube...
You'll get the idea of how "Top and Bottom" promoting works out.
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@ 50.20 after another decline of 16%, they'll defend 50... or at least
feign it.
What actually improved?
Gas Prices?
Food Prices?
Rents?
Supply Chains Globally?
War against the CIA in Ukraine?
China backing off Taiwan?
Brandon still alive so we can avoid Pelosi, Kamala will be chicken choked...
never stood a chance. The CFR didn't invite her to the room for anything
less than nefarious purposes... Nnnn.Kay?
It's Nancy's moment to shine soon enuf.
Have China’s growth prospects been hammered by strict Covid-19 lockdowns? Well for 61 hours...
Does not count.
Have Europe’s households enduring cost of living crisis ended, or will the ECB's Rate Hikes temper it?
Hiking rates in a Depression a good idea?
Uh... no.
And let's not skirt the situation in many poorer emerging markets, where food crises and even famines are spreading...
Yeah, naw... it's all good there IF your epigenetic goal is... less peeps and a cleaner less colored deep end of the pool.
The last time that the - everything sell-off stars aligned was in early 1981 when Paul Volcker’s Fed broke the back of
inflation and turned stagflation into an outright poof... Volker was no Pompedor, he simply drove as many stakes into
Capital Stocks as possible given his Agenda, for which he is touted as a HERO.
Lunacy at best.
The dude was a Temple Master... And for you younglings... Eustice Mullens... Google "Secrets of the Temple"
it's a good read, but hell few bother to do that any longer. Watch it on the Tube then.
Clearly Recession Again as in 08We are already now in, yet another recession, similar to 2008. Consumer sentiment doesn't move the market (SPX), but it does accurately reflect what the working class is experiencing. Prepare yourself & your family, if you have not done so already. It may be years until we push through past, all the pain. Yet again, or for the first time for younger investors.
Consumer Confidence & US2YRFor my records.
Federal Reserve is hiking rates when consumer sentiment is at one of the lowest in history. First time in history they hike with consumer sentiment at these level, they used to cut rates in the past. Recession, or a possible depression, is highly likely in 2022~2023
Consumer SentimentConsumer Sentiment continues in Trend.
Its ability to forecast "Recession" is unparalleled.
100% accurate as a Leading Indicator of overall
Economic conditions.
It Surveys 500 households about their expected
financial conditions, their sentiment about the
general Economic conditions, Unemployment and
the status of household Savings.
Consumers’ confidence towards the future economic
conditions, as a consequence of which they are less
probable to save, and more probable to spend money
on major purchases in the next 365 Days.
Inflation has an important role as Purchasing Power
Parity is the "Price" of a currency expressed in terms
of the number of goods or services that a unit of money
can purchase.
Purchasing power is important as, Ceteris Parabis,
inflation decreases the number of goods or services
a Consumer would be able to purchase.
Higher cost of living, as well as increasing interest rates
affect Global Markets - Inflation increases the demand for
Revolving Credit at a time when many Institutions are
seeing their falling credit ratings create large Risks to
both Corporate and Government Bonds.
Rising Rates for UST's is indeed a signal of Quality Control
Issues for the United States Treasury and Government. It
used to be 4 decades ago, now... it is simply a measure of
how distended the late-stage Credit Cycle has devolved.
QE has turned former Citizens into Consumption Units to
be measured and monitored for Big Data.
A rate of return equal to or greater than the rate of inflation
today is difficult for those living on Fixed Income Streams.
Boomers, GEN X, and the few remaining Greatest GEN
are seeing their Savings lose their Purchasing Power at
the highest rate within their lifetimes.
For the Youth of our Nation - Gen Z & Millenials it is caught
as catch can - where there's action there's an opportunity.
unfortunately for the Majority - remain prey with less
opportunity for a great many reasons.
Consumer Sentiment - 66.8%Try as they might - The perception Monetary
& Fiscal Policy is Failing...
Inescapable.
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72.5 expected
Swing and a...
Miss
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Every Economic Downturn is led by 18 Months
of...
F_ck this BS, we're in Deep Sh_t.
Every one Ever.
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Wall Street has its Fill.
All that's left is for the Equity Complex to
Cloes Red Today.
Difficult to Fathom?
Not really.
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The Operators know precisely what's up.
The FED... bailout after bailout created
another QE Bubble.
Jerry excels at Transitory Bubbles as Did
Yellen, Bernanke, and Sir Allen.
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Friday's are an easy Fill as the Degenerates
are mostly distracted with Weekend Plans.
Participation is low, the perfect time to run
the Tables ahead of the continued correction.
The move Lower is far from over, the question
we will answer is - will we see lower lows or
will Trending Support now hold?
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Today's Gains do not belong.
The ES traded to Resistance, last week's Pivot.
The NQ made a Large Front Run of its Objective
by 40+ Ticks.
The YM is broken, it was the First to break signaling
a complete loss of confidence in the Seasonals
ability to keep this together.
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A very serious Decline is set up, one in which
we will see far more Vertical Down.
CRASHY MOVE DEAD AHEAD - IMHO
Positioned 82% in SELL of ES NQ YM
We have not seen and inside out Friday in a
very long time.