This Is An Important Chart In An Odd Market Moment – Mike Swanson (02/8/2019) – WallStreetWindow.com

This post was originally published on this site

The stock market is in a pause moment. There was bad news on China trade negotiations on Thursday, but it only made the stock market dip for a few hours. We are in what feels like an odd market moment, but it is perfectly normal for where the stock market is at right now.

Let me explain.

We had a big rally after Christmas that is starting to run out of steam. When that happens though in a market like this it tends to just float for weeks before making another meaningful move. Daily gyrations are just noise.

And the same thing is happening actually with gold below the $1330-$1350 range. I talked with Jim Goddard about gold and when junior mining small cap stocks will move in this interview here:

http://wallstreetwindow.com/2019/02/market-update-with-jim-goddard-on-gold-and-the-federal-reserve-mike-swanson-02-08-2019/

I know most of the experts are saying things are going to go up forever from here and there are still nonstop Apple pumps on TV even though it remains a broken stock on the technical analysis charts, but one thing I want to show you is that the Baltic Dry Index is fading – to tell us that the rosy predictions are WRONG.

The Baltic Dry Index measures the rates that are charged by giant shipping tanker companies to carry goods and they move up and down by supply and demand.

The rates go up when lots of goods need to be shipped all over the world and fall during times of economic softness.

A Reuters story titled “Global Shipping Rates Slump
In Latest Sign Of Economic Slowdown
” sums it up in the headline.

The Baltic Dry Index is telling us that the global economy stalled out a few months ago and more weakness this year is coming. The stock market of course is ignoring that right now, but the second half of the year is going to be tough for people.

That doesn’t mean money can’t be made in the right things. And as I told Jim Goddard I think gold and mining stocks are what are really going to do well now over the next few years.

Defensive sectors are still leading, but to buy anything you must have a game plan. Arm yourself with the single best trading pattern I have ever used The Two Fold Formula.

Grab my ebook on this trading pattern by clicking here.

This post was originally published on *this site*