I'm Brandon, a senior stockbroker at a local securities firm and also a professional trainer with Singapore Exchange (SGX) Academy. Holder of Chartered Market Technician (CMT) and Certified Financial Technician (CFTe) with over 10 years experience in the financial industry.

This blog aims to share how private traders can forecast price and trade in line with the market and smart money by applying Wyckoff principles and simple technical analysis techniques.

Thursday, 26 April 2018

Keeping A Close Watch on the Short End of the Curve

It is not surprise that many traders and investors watches the US Yield Curve like a Hawk. According to SeekingAlpha.com, the yield curve inverted 6 out of 9 times before the US and global stock market peaks.

There are a few causes for the yield curve inverts and one of the most prominent reason is tightening of interest rate by US FED. Its not an easy job to correctly execute the tightening of an over heating economy, and many a times, over tightening leads to economic recession in the US.

Following are 3 charts showing the present yield curve and the previous inverted yield curve happening just before the market peaks. 

The current US yield curve has flatten but yet to invert, Singapore investors should keep a close eye on the short end of the yields curve (3mths, 2years and 5 years).