rubindr

HYG might be time to short

Short
AMEX:HYG   iShares iBoxx $ High Yield Corporate Bond ETF
HYG is hitting downward trend line resistance in a wedge pattern. It might be a good time to short. If the economy starts to break out inflation expectations should rise and all rates including high yield should rise. If the economy begins to tank, High yield bonds will be suspect and yields for junk bonds should rise as the likelihood of bankruptcy increases. If yields rise price goes down. Essentially shorting HYG is a long straddle

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