Recent economic data paints a stark picture: the United States is likely already in a recession, and investors who fail to adapt risk being left behind. The evidence lies in the Conference Board’s Leading/Lagging Ratio, a powerful economic indicator with a near-perfect track record of signaling recessions. As this chart plummets to levels not seen since the 2008 Financial Crisis, it’s sounding a loud alarm. Meanwhile, savvy traders are turning to cutting-edge tools like Tickeron’s AI trading agents to navigate these turbulent markets with precision and profit. Let’s dive into the theory behind the Leading/Lagging Ratio, explore why it’s signaling a recession, and examine how Tickeron’s AI is revolutionizing stock trading in this economic storm.
The Leading/Lagging Ratio: A Recession Predictor with Unmatched Accuracy
The Conference Board’s Leading/Lagging Ratio is derived from two key composite indexes: the Leading Economic Index (LEI) and the Lagging Economic Index (LAG). The LEI is a forward-looking gauge, aggregating ten indicators that typically shift before the economy as a whole changes direction. These include metrics like new manufacturing orders, building permits, stock prices, and consumer expectations. The LAG, conversely, tracks indicators that confirm trends after they’ve occurred, such as the duration of unemployment, labor costs, and commercial loans.
The ratio of these two indexes—LEI divided by LAG—serves as a barometer of economic health. When the Leading Index outpaces the Lagging Index, the ratio rises, signaling economic expansion. But when leading indicators weaken relative to lagging ones, the ratio falls, often foreshadowing a slowdown or recession. Historically, sharp declines in this ratio have coincided with every major US recession since the 1960s, including the 2001 dot-com bust and the 2008 Financial Crisis. Grey areas on the Conference Board’s chart mark these recessionary periods, and the current trajectory of the ratio is chillingly familiar.
According to recent posts on X, the Leading/Lagging Ratio has dropped to its lowest level since the 1980s, with the LEI itself declining in 36 of the last 38 months—the longest streak ever recorded. The LEI has fallen 17.3% from its peak, a drawdown surpassing the declines seen before the 2001 recession and rivaling those of 2008. As one X user noted, “Such levels have never been seen outside of recessions.” This isn’t mere noise; it’s a signal that the economy is contracting, even if traditional metrics like GDP or unemployment haven’t yet caught up.
Why This Signals a Recession Now
The theory behind leading and lagging indicators hinges on their predictive versus confirmatory roles. Leading indicators, by design, capture early signs of economic shifts—think of them as the economy’s pulse, quickening or slowing before the body shows visible symptoms. Lagging indicators, meanwhile, are the autopsy report, confirming what’s already happened. When the Leading/Lagging Ratio tanks, it means the forward-looking signals are deteriorating faster than the backward-looking ones, a hallmark of an economy tipping into recession.
Today’s data is alarming. The LEI’s year-over-year change has plummeted below -7%, a threshold that, over the past 40 years, has always coincided with a recession when sustained for two or more months. The current decline has persisted far longer, with the LEI at its lowest in 11 years. Unlike lagging indicators, which may still reflect past strength (e.g., low unemployment), the LEI’s collapse suggests the future is grim. Manufacturing is weakening, consumer confidence is faltering, and new orders are drying up—classic pre-recession symptoms.
Critics might argue that the economy still shows resilience, citing strong retail sales or corporate earnings. But this misses the point: leading indicators don’t wait for the economy to “feel” like a recession. They warn of what’s coming. The Conference Board itself notes that the LEI’s prolonged decline—14 straight months as of early 2025—marks the longest negative streak in its history. By the time lagging indicators like unemployment spike, the recession is already underway. The Leading/Lagging Ratio’s current plunge, mirrored by grey recession zones in past charts, suggests we’re not just approaching a downturn—we’re in one.
Tickeron’s AI Agents: Trading the Recession with Precision
As the economy falters, stock markets are becoming a minefield. Volatility is spiking, and traditional trading strategies are struggling to keep up. Enter Tickeron’s AI trading agents, a game-changer for investors navigating this recessionary landscape. Tickeron’s platform leverages advanced artificial intelligence to deliver stock forecasts, price predictions, and automated trading strategies with remarkable accuracy.
Tickeron’s “Double Agent” model, part of its third-generation AI suite, is particularly revolutionary. Unlike traditional algorithms that rely on static rules, Double Agent adapts dynamically to market conditions, analyzing vast datasets—price histories, economic indicators, even sentiment on platforms like X—to identify high-probability trades. In a recession, where market signals are noisy and human biases like panic or greed can cloud judgment, Tickeron’s AI remains coldly rational, executing trades with speed and precision.
For example, as the Leading/Lagging Ratio signals economic contraction, certain sectors—like defensive stocks (utilities, healthcare) or bonds—tend to outperform, while cyclical stocks (tech, consumer discretionary) falter. Tickeron’s AI can detect these shifts early, reallocating portfolios to capitalize on emerging trends. Its predictive models also excel at identifying oversold stocks or short-term rallies within a bearish market, allowing traders to profit even as the broader economy contracts.
The beauty of Tickeron’s platform is its accessibility. Whether you’re a seasoned trader or a novice, the AI agents act as tireless analysts, scanning markets 24/7 and delivering actionable insights. In a recession, where timing is everything, this edge is invaluable. As one X user put it, “AI trading isn’t just the future—it’s the now.” Tickeron’s tools are proving that in real time.
The Bigger Picture: Act Now or Pay Later
The Conference Board’s Leading/Lagging Ratio isn’t just a chart—it’s a warning. Its current trajectory, echoing the darkest economic periods of the past half-century, suggests the US is already in a recession, whether official declarations have caught up or not. The theory of leading versus lagging indicators underscores why this matters: the economy’s leading signals are screaming contraction, and history shows they’re rarely wrong.
For investors, the message is clear: adapt or get burned. Tickeron’s AI trading agents offer a lifeline, empowering traders to navigate this recession with data-driven confidence. By harnessing the power of AI to anticipate market moves, Tickeron is helping investors not just survive but thrive in these challenging times. The recession is here, but with tools like Tickeron, opportunity is knocking for those bold enough to answer.
Sources:
QQQ broke above its upper Bollinger Band on May 12, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 45 similar instances where the stock broke above the upper band. In of the 45 cases the stock fell afterwards. This puts the odds of success at .
The 10-day RSI Indicator for QQQ moved out of overbought territory on May 21, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 68 cases where QQQ's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 30, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on QQQ as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for QQQ turned negative on May 29, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where QQQ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
QQQ moved above its 50-day moving average on May 01, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for QQQ crossed bullishly above the 50-day moving average on May 06, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where QQQ advanced for three days, in of 380 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 378 cases where QQQ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Category LargeGrowth