My 2nd Long Term Target was hit and surpassed.
Sentiment is complacent. Complacency is different from Greed. Still bearish, but more sneaky. I'm a strong believer in sentiment and I believe we're going to need to work off this extreme reading one way or the other. Historically, we move sideways to lower after reaching such optimistic levels. It's not sustainable....
... for a .95 ($95) credit.
Notes: She's gone quite aggressive here, selling the first out-of-the-money strike with a break even at 86.05. She'll look to roll for duration on extrinsic approaching zero to the first out-of-the-money short put for a credit or, at the very least, toward current price for a credit, looking to emulate HYG's annualized dividend...
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...
High yield bonds (junk bonds) hit monthly resistance line.
Fundamentally, the US corporate debt has almost doubled since 2008.
Right now over 50% of them in the market are BBB, which is just a cut above junk.
Further analysis: youtu.be
This is a difficult one, but one that will be immensely profitable for anyone that gets the timing right.
This thing is going to blowup. Could be tomorrow, could be a couple years. This one will be a historic trade, might not even be a bad idea to scoop some 2021 OTM puts on the low.
It's hard to bet against a sitting president, so timing will...
Stock investing strategies by pretiming
Investing position about Supply-Demand(S&D) strength: Rising section of high profit & low risk
Supply-Demand(S&D) strength linkage Trend Analysis: In the midst of an adjustment trend of downward direction box pattern stock price flow marked by limited rises and downward fluctuations.
This long term weekly chart compares the relationship between:
1) economic fundamentals
2) fears of falling equity prices
3) expected default rates in credit markets
The top half of the chart overlays the long term correlation between the VIX (in orange) to speculative corporate bond yields (blue). The bottom half of this chart shows the Fed's National...
$85.50 is the key neckline support for $HYG as it bounces off the top boundary of wedge pattern. The neckline can be seen with multiple previous SSR levels. The downward bias is reinforced by the current SSR level for which price action is firmly pinned under.
With an earnings recession in progress and oil demand in question, it is inevitable to see some stress...
As can be seen on its weekly chart, the $HYG appears to be sending a warning signal. On a technical basis, a "Shooting Star" pattern has emerged, coupled with negative divergence in the SMI and RSI indicators.
To us, it appears that high yield bonds are sending a signal that its rallying may be getting a little stretched.
We would caution investors to tread...
Max Profit: $173/contract
Buying Power Effect (Cash Secured): $8026
Break Even: 80.26/share
Notes/Comments: Up to this point, I haven't posted many of my IRA trade ideas, primarily because they are way longer-dated setups than people are generally interested in, and I've also been an infrequent buyer of the underlyings that make...