From another dimension, Junk Bond (HYG) to Treasury Bond(TLT) ratio. This is a similar concept to Staples(XLP):Discretionary(XLY) i posted earlier.
HYG - the high yield bond (Junk Bond-Speculative) is the place where Fund managers wants to be when market is making uptrend, it carries high risk with it.
TLT - the treasure bond (Safe Bond) is the place where Fund managers wants to park their money when market is crashing.
As the ratio gets lower and lower, this happens when Funds are flowing into TLT.
As we can see, the Fund have indeed flow into the TLT since Jan 2014. But they did it so stealthily that it wasnt so obvious.
Now, the ratio is about to hit 0.73 which is the support for the symmetrical triangle pattern.
If it holds, then perhaps market will have some rally..
if it break down.. then i can only chant "Allelujah"
HYG - the high yield bond (Junk Bond-Speculative) is the place where Fund managers wants to be when market is making uptrend, it carries high risk with it.
TLT - the treasure bond (Safe Bond) is the place where Fund managers wants to park their money when market is crashing.
As the ratio gets lower and lower, this happens when Funds are flowing into TLT.
As we can see, the Fund have indeed flow into the TLT since Jan 2014. But they did it so stealthily that it wasnt so obvious.
Now, the ratio is about to hit 0.73 which is the support for the symmetrical triangle pattern.
If it holds, then perhaps market will have some rally..
if it break down.. then i can only chant "Allelujah"
