Stocks are in la la land.
The S&P 500 has effectively not moved in 40 days. Since early July, the market has traded within a 1.6% price range (with one brief exception).
Put another way, the market has gone virtually NOWHERE for nearly two months.
The above chart makes the trading range look significant because it’s a closeup. Here’s a more relative perspective.
This is beyond ridiculous. The market is virtually “dead” having gone nowhere for two months. You could have gone on vacation in early July, returned today, and missed NOTHING as far as stocks are concerned.
Meanwhile, trouble is brewing in bonds.
Most investors focus on stocks, but it is the bond market that senses major changes first. And a major signal just hit in Japan’s bond market.
The Bank of Japan took interest rates to negative in late January 2016. Since that time yields have fallen steadily… until the end of August at which point Japanese bonds yields erased nearly an entire year’s worth of gains in a matter of weeks.
Is Japan beginning to lose control of its bond market? If so then we could be moving into a crisis in the near future. The Nikkei peaked back in early 2015 and has since entered a downtrend. It bounced at key support but is losing momentum quickly.
If Japan loses control of its bond market then we’re moving into the bond market crisis… THE crisis to which 2008 was a warmup.
We are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.
In it, we outline the coming crash will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.
We are giving away just 1,000 copies of this report for FREE to the public.
To pick up yours, swing by:
https://www.phoenixcapitalmarketing.com/stockmarketcrash.html
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
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