timwest

HYG/TLT Ratio Essential For Stock Market Trends

HYG/TLT  
HYG/TLT  
888 3 12
HYG/TLT Ratio

Is a simple ratio of Risky Bonds vs Safe Bonds

IF this ratio is declining, risk is getting punished.

Note how the stock market goes sideways if this ratio is declining.

Siamese Twins Here as Banks De-Leverage from 2007-2010.

Since then if HYG/TLT is declining - the stock market is is flat over extended periods of time. Note the red arrows marked "SPY SIDEWAYS".

Recently, there is a similar price pattern in this ratio to the low in 2012. The Ratio made a double bottom with a strong reversal off of the bottom (note the yellow circle) and then a drop again after that bounce, which we are in now.

Look for HYG             to turn up relative to TLT             in the coming days and weeks as a sign that the stock market can build the chance for a rally. For now, there is no signal. Rather, it is mirroring the last bottom from the summer of 2012.

Tim

3:16PM EST Sep 23, 2015
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com
Tim, would you mind updating this chart and relationship. been watching high risk v low risk ratios lately, similar to 2007, 2011? Thanks
Reply
Appreciating your posts - thanks
Reply
HYG/TLT has not yet bottomed, in my opinion. Thanks
Reply
United States
United Kingdom
India
Deutschland
France
España
Italia
Polska
Türkiye
Россия
Brasil
Indonesia
Malaysia
Việt Nam
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Priority Support Contact Support Ideas Published Followers Following Private Messages Chat Sign Out