US Economic Activity Composite Review

The Economic Activity Composite (EAC), a proprietary multi-variable composite of mostly market-based variables, represents a leading measure of economic activity within the United States.

Ignoring for a moment that aggressively cutting interest rates won't help stimulate domestic or global demand, why is the White House so worried about the economy? Subscribers don't have access to the Fed's dot plot, but maintain their read on the domestic economy through the Economic Activity Composite (EAC). What's it saying? The US economy has been deteriorating - decelerating since October 2018. The computer defines deceleration as ITCO < 0 and LTCO > 0. This setup worsened to contraction ITCO < 0 and LTCO < 0 in February 2019.

The EAC is so important that it has it's own Tab (EAC) in the Matrix. Labor is bullish, but extremely stretched in TIME. Confidence, a key forecaster from gold to US stocks, is also bullish, but extremely stretched in TIME. Commodities are bearish, but the cycle of time will become stretched in the second half of 2019. The US economy, the solely driver of economic growth in the world, is in trouble. Unfortunately, few can see it unfolding because nobody wants to talk about it.

Economic Activity Composite (EAC)

 

Disclaimer: Content provided by Eric De Groot is intended as general information and not specific recommendations. Individuals are responsible for their own investment decisions. Past ...

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