We watch a whole host of macro indicators; they give us a peek under the hood of markets and the global economy. The thing about these indicators is that they are slow moving — they’re not something that need to be checked every day, nor every week.
98% of the time, these indicators point to smooth sailing ahead and signal we should stay on the bull, going long risk-assets.
The other 2%, these indicators start turning over and begin flashing warning signs. It generally starts with just a few, and we know not to be alarmed, only that we need to keep an eye on the exit.
And then, generally every 5-7 years, our indicators (all of them) start screaming “Danger..Danger…Danger”. When this happens, we know it’s time to start tactically managing our longs and to loosen the leash on our inner-bear – and begin looking for opportunities to plunge to the short side.
Well readers, the canary is croaking. The majority of our macro indicators have recently begun flashing red. Our system is telling us that this old bull is spent and it’s time move up the stops on investments and begin looking to tactically get long volatility.
The Three Most Important Charts To Markets Right Now: