The above graph shows the trend of one of our proprietary financial risk indicators (click on the chart to enlarge it).
The indicator points to a stronger market in the near term.
Why?
The market peaks following a rise in the above financial risk indicator as it happened in November and January.
The market rallies, however, when our financial risk indicator declines as it has been happening since the end of January. Please visit also previous posts when we showed this amazing gauge.
The bottom line is that because of the decline of our financial risk indicator the market will rise. The market will stop rising following a bottom in this gauge.
George Dagnino, PhD
Editor
The Peter Dag portfolio
Since 1977
Disclaimer. The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
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