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Recession Alert! Leading Economic Indicators Slump Most In Over 40 Months

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

Danger Will Robinson! Danger!

Liquidity moves markets!

Follow the money. Find the profits! 

The US index of Leading Economic Indicators slumped by the most in over 40 months.

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On the other hand, the index was negative MoM sixteen times after January 2019, yet there was no recession. So this is likely a false risk flag.

If you believe technical indicators like the Hindenburg Omen, the HO is not flashing any warning.

hindomen

Netflix, my favorite streaming service for The Office with Rainn Wilson (aka, Dwight Shrute) and Parks & Recreation with Nick Offerman (aka, Ron Swanson) tumbled mightily with a bad earnings report. But a bad earnings report is not necessarily indicative of an impending recession.

Netflix Inc. had lost about $18 billion, or 11%, of its market capitalization as of 10:55 a.m. Thursday in New York trading. The streaming-video giant fell the most in a year on an intraday basis after reporting the loss of 130,000 U.S. customers and slower growth overseas last quarter. While the company has yet to lose any of its buy ratings as a result, analysts trimmed their 12-month price targets to a consensus $389.79 a share versus $398.14 prior to Wednesday’s earnings report.

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But, Netflix’s decline in earnings per share occurred back in April, so it was expected.

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In fact, Netflix has a modest earnings surprise.

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Bollinger Band, a technical indicator, didn’t pick up on the decline in Netflix stock price.

netboll

Elliott waves? Looks more like a tsunami.

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And Netflix stock price is currently below the Ichimoku cloud.

netichimoku

The Chameleon Oscillator is … green.

chamoss

So, in this case, technical analysis gave an inaccurate buy recommendation. But true technical believers will now interpret the charts as a buy signal!

Netflix is losing The Office and likely Parks and Recreation to NBC Universal streaming service. And then there is Amazon Streaming, Disney, … a crowded market place.

So, the robot in “Lost in Space” may be giving a false flag.

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