A simple but effective way to gauge the global economy and mkts.
There's a simple method we used while trading that might help some here who trade. This might be an oversimplification, but you'd be surprised to find how well this works.
Ready?
Look at oil prices. You don't even have to look at the crude oil, just look at the prices at the pumps. This is only but one indicator to look at, but as goes the price of oil, the mkts will follow.
You can do some research on it, but trust me, when oil goes down, so does the economy, and vice versa.
Within the last 2 months, I have seen gas prices go from $1.70's to now over $2.20. This is in NJ, but overlay that chart and you will see oil bottomed out in Feb and the mkt bottomed out in March. Watch for the timing as oil will move before the mkts most of the time.
If you want two tickers as a proxy, try comparing USO and SPY on google finance charts.
GL!
|