Regnevathe2nd
Short

Divergence Between HYG and DOW Presents A DOW Short Opportunity

AMEX:HYG   ISHARES IBOXX $ HIGH YIELD CORPORATE BOND ETF
19 0 2
The breakdown in HYG             even as the DOW is making new highs suggests a divergence that can only be reconciled with a correction in the DOW. Note the extremely high volume in the down days for HYG             , which serves as a confirmation on the downside. If the FED really does raise the Fed Funds Rate in December (which I think to be unlikely), we will see another steep decline in the DOW ala Jan 2016. In the past week, the emerging markets (use of SCHE             as a proxy in orange) are showing signs of distress with the threat of a FED hike looming and a stronger USD. If this continues, the DOW will not be able to escape the pull of gravity             .
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