Futures are Up…does that Matter?

The foundation of economy still matters.

The Yield Curve…still moving south.

A falling yield curve occurs when the yield spread between long-term and short-term bonds decreases. In other words, it means that the interest rates on long-term bonds are decreasing relative to the interest rates on short-term bonds. This can indicate that investors have a pessimistic outlook on the economy's future growth and inflation prospects.

Typically, a healthy yield curve is upward-sloping, where long-term bonds have higher yields than short-term bonds, indicating that investors have confidence in the economy's future growth and inflation prospects. A falling yield curve, on the other hand, can suggest a lack of confidence in the economy's future prospects, potentially leading to lower investment and lending activity. This can, in turn, affect borrowing costs and economic growth. Therefore, a falling yield curve can be seen as a potential sign growing concerns of a slowing economy.

Presently at -.83% .

Auto Loans, a sign of a weakening economy?

The number of American car owners who are struggling to pay for their vehicles has resulted in record-high delayed car payment rates, according to Fitch Ratings. In December 2022, the number of subprime auto borrowers with a delay of at least 60 days increased from 2.58% in April 2021 to 5.67%, surpassing the peak of delayed car payments during the Great Recession in 2009. The struggle to make car payments comes amid high interest rates, making it difficult for people to take out new loans. The struggle for auto loan borrowers has also resulted in higher vehicle repossessions, affecting their credit scores and making it harder for them to take out another loan at a good rate.

Charts

QQQ

Possible support at the 90 day EMA

Apple

Resistance at the 250 day EMA. Possible support at 90 day EMA

Tesla

Resistance at the 13 day EMA. One Balances Volume (OBV) still positive.

This could be a sideways moving week since last week was south bound.

Patients.

Live Loud!

Trent

Disclaimer

This is not advice or a recommendation.