The yield curve can be wrong. It might signal nothing but the fact that the Fed should never have done the December rate hike.
But it doesn't matter. There is so much money run algorithmically that stocks are pre-ordained to come down because the recession pattern post inversion has been a reliable one. So, you can't stop the rain coming down on this market until you get a host of people to realize there are bargains even if we have a big slowdown and if we are in are in a real jam the Fed can cut rates if it has to.
The action, of course, is disturbing. You are not going to be able to find much buying support because algorithmic trading, per se, has no limits. They don't put in orders that say, "down 1.5% walk away and let the bids build." They don't have any sense that Home Depot (HD) is different from McDonald's (MCD) which is different from Amazon (AMZN) or JP Morgan (JPM) even as only the fourth is really impacted.
So I say stay the course because the recession is not coming. But if you are concerned, stick with the highest of growth and the biggest of yields that are safe and get ready to ride the rough seas of artificial "intelligence" that say sell, sell, sell.
(Home Depot, Amazon and JP Morgan are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells HD, AMZN or JPM? Learn more now.)
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