The stock market in the US is potentially near
an imminent and very sharp price decline.
Credit risk spreads have increased markedly in November,
as investors are demanding more dollars to hold riskier corporate US paper, in case of default.
HYG, the high risk bond ETF, which peaked in 2007, prior to the financial crisis in 2007-2008,
has failed to make a new high past the Feb.2020 peak, prior to the Covid stock market meltdown.
Traders should keep very close tabs on their long market positions,
and should tighten up "stops" to the appropriate risk tolerance level
in case of a sudden and rapid market decline.
S+P 500 could hit 4530 very quickly, as shown on the enclosed chart.
SPX Last 4688.68
THE_UNWIND
11/17/21
Woods of Connecticut
an imminent and very sharp price decline.
Credit risk spreads have increased markedly in November,
as investors are demanding more dollars to hold riskier corporate US paper, in case of default.
HYG, the high risk bond ETF, which peaked in 2007, prior to the financial crisis in 2007-2008,
has failed to make a new high past the Feb.2020 peak, prior to the Covid stock market meltdown.
Traders should keep very close tabs on their long market positions,
and should tighten up "stops" to the appropriate risk tolerance level
in case of a sudden and rapid market decline.
S+P 500 could hit 4530 very quickly, as shown on the enclosed chart.
SPX Last 4688.68
THE_UNWIND
11/17/21
Woods of Connecticut