Profit_Link

Watch Corporate Bonds - Bond Selloff to Trickle into Stocks?

AMEX:LQD   ISHARES TRUST
LQD has just had 4 consecutive closes below the 21 ema , this may well be a sign of weakness in an already overextended market.

As you can see, LQD and the SPX have had a very tight correlation, particularly since the liquidity hose was turned on after the market crash in March. This is why a selloff in the bond markets, may very well forewarn of a potential correction (perhaps severe, perhaps just mean reversion).

This is made more concerning, with the selloff in HYG occurring in tandem with the selloff in LQD , the question i have is, what do the bond investors know that equity investors do not?



-TradingEdge

Comments

Great chart! Thanks. Will be interesting to see it play out, although i do worry about the Fed's outright purchase of IYR, HYG and a few others, and wonder if this has removed any true price discovery?

Also, can you advise how you have been able to include two instruments in a single frame, with price axis on both left and right hand side? I've tried a number of times to load up 2 instruments, although they stack on top of each other and utilise the single price column, which doesn't provide for the great correlation examples you've achieved. If you could provide some insight, that would be great.
+2 Reply
Profit_Link team43112
@team43112, To compare two or more instruments, click the + icon (the + is circled and will say "compare or add symbol"), then simply type in the ticker for what you wish to add to the chart (e.g. US10Y) and then tick "overlay the main chart" and hit "ok."

If the chart scales are still all to one side, then go to "settings" and "scales" and select "auto" under "scales placement."

Hope that helps.

-TradingEdge
Reply
Thanks very much for the speedy response. Much appreciated.

Also, while i have you, does TradingView have a 'marketplace' per se, for the sale and purchase of custom indicators and/or EA's etc - for code written in the TradingView language? If so, how does one apply to be a seller, and what is the typical process?

Thanks again
+1 Reply
Profit_Link team43112
@team43112, I am not sure whether there is a marketplace for indicators or strategies per se, i know you are able to publish indicators, however i do not believe there is a monetary aspect, however, i could be wrong as i have not given it much thought.
Reply
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