Week of: 04/04/22 – 04/08/22
The World Wealth Gauge is giving us some negative readings this time and we’re finally starting to see some cracks in the system.
And we’ve also got a sign last week that’s one of the most reliable signs in the upcoming recession that we have – it’s called the inversion of the yield curve. It’s when the 2-year and 10-year yields invert, which essentially means that vendors/consumers are demanding higher rates of return over the course of next 2 years than over 10 years.
Why is that so, you may ask?
Because they’re more fearful about what would happen in the short term than the long term. And this is a cause for concern because it can lead to panic.
And it’s a big deal – every single time the yield curve has inverted, the U.S. economy has gone into a recession for the next 6 to 24 months. And I think it won’t be any different this time.
And when it’s not different, something like the AUDJPY is going to sell off aggressively.
I’ve been talking about this trade for a while now. And this is a longer-term trade which we’re going to talk about week in and week out.
If you’re not in this trade, here’s a conservative option to get in…
You can look to sell on a break below 90.75. And the target here can be at 76.50 with a stop set at 94.30.
The average risk with this trade is 365 PIPS, while the reward potential comes to around 1,400 PIPS! That’s an impressive 4x reward compared to the risk.
And for ones who’ve been following this trade, here’s our original trade setup…
Sell at 90.06, 94.50, 97.25, and 100 levels. The average price, if we sell at these four levels, will be 95.45. My profit target on this one is at 76.50. And my average risk with this trade is 745 PIPS, while the reward comes to around 1,895 PIPS – again phenomenal.
I’m calling this one as my 2022 Swing Trade and will be managing it going forward.
Check out this week’s top picks video for all the strategy details.
And for more tips and picks, you can join me in my Money Flow Trading Room. It’s where I talk about market and trade strategies every week.