Recession Watch Heats Up

More data hit the wires yesterday forcing the market to contemplate what the bond market has known for a long time now; that a recession is just around the corner. The yield curve has been inverted for over three months now and as noted on Monday, the data about US economic growth shows a clear downward trend that is quickly heading toward zero growth. Nevertheless, indices closed near support levels yesterday and it is quickly likely that the inevitable will be staved off a bit longer as recently converted bears, who have now been conditioned to buy the dips, help push indices back up as we near next week's elections. If the market does crawl back up the hill here, it will make for a good low risk short opportunity. In the meantime, focus on gold and consumer staples and avoid the broader market like the hot potato that it now is.