A couple of takeaways from Dagnino’s post at 12:05am this morning:
- He believes that we are in Phase 2 of the economic cycle. Our algorithms agree with that. It bodes well in the near term for stocks.
- He says that TLT is a trading opportunity. He shows a chart where ROC (Rate of Change) is below a target of -10. To me that is a short term trading opportunity. Good to take a flyer on, but lon-term TLT is going down due to the influx of money into the economy. Inflation will be on the rise at least for a while, and the FED won’t stop it because to a point (2% or so 3 mo treasury rate) that is where they want it.