4/5/22 The Yield Curve Inversion & Elon Buys Twitter


Markets posted a strong green day on Monday. The Nasdaq led the charge to close up 1.9%. The other indexes were green but gained less than 1% each.

The stock of the day was Twitter (TWTR^). An SEC filing revealed Elon Musk bought ~9% stake in the social media platform. He’s been critical of the platform in recent weeks. TWTR stock closed up 27%.

To our knowledge, this is only the second investment he has in a publicly-traded company. Tesla (TSLA^) is the other. Musk is now Twitter’s biggest shareholder. Other investments of his that we are aware of are in “Bitcoin, Ethereum & Doge[coin]. That’s it.” I also own some of each.

Worth noting that TSLA stock rose 5.6% yesterday.

Other leading stories are the war in Ukraine and the inverted yield curve. I’ll address that next…


On Friday 2-year bonds trader higher than 10-year bonds.

Typically long-term bonds pay a higher rate. When the opposite is true, the yield curve inverts, it can indicate that the winds are changing.

The past nine recessions were preceded by a yield curve inversion between the 2 and 10-year bonds.

But each recession came 6 to 24 months after the inversion. And there is no direct cause and effect.

Consider this, in August 2019 an inversion occurred. About 6 months later the Covid recession hit. Did the inversion predict Covid? No, absolutely not.

In 1965 the yield curve inverted and there was no recession.

With only a few data points to go on it’s worth noting the inversion occurred but don’t tie all your hopes and dreams to this one technical indicator.


April is historically bullish, so far it’s not disappointed.

My outlook remains positive, the current rally could carry on through the summer.

More new positions are noted below…


*Low Float
^Open Position

*IMTE has resistance at $35
^*SGLY profit target is $16
^NEXT has resistance at $7
PPGH is on watch
NRGV has support at $18
^ASRT has support at $3
SGML has support at $15
^GME has support at $160
BORR is on watch
^LXU has support at $22
^GLNG has resistance at $25
BRCC has support at $22
SBS is on watch
^TELL has support at $6
KOS is on watch
TWTR is on watch

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