Question
This question will explore the relative strength of stocks (Risk On) versus bonds (Risk Off) and the extent to which we can ascertain whether the
This question will explore the relative strength of stocks (Risk On) versus bonds (Risk Off) and the extent to which we can ascertain whether the economy is in or heading towards a recession. Create a SharpChart based on weekly data of the relative strength of stocks in StockCharts.com (use a line chart for this with the S&P 500 ($SPX) representing stocks and the 10-year bond price ($UST) for bond prices). Include the RSI above the chart and convert the default to OHLC bars. Be sure to add annotations in StockCharts.com, do not write these in by hand. Briefly discuss what the relative strength chart (not the RSI chart, the price relative chart) is saying about the possibility of a recession at the present time. Make sure you include a meaningful (i.e., non-trivial) discussion of the technicals relating to this. Paste the annotated graph and your discussion into your document. (Note: there are two videos of how to use StockCharts.com for this assignment on the Brightspace web site for this class.)
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