$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...
big wedge forming over last two decades. no where near ATH's, unless MMT works. $SPY
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...
Metrics: Max Profit: $173/contract Buying Power Effect (Cash Secured): $8026 Break Even: 80.26/share Delta: 31.71 Theta: .67 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...
Long Term setup here - you know what to do. Targets Marked on chart.
Small caps are often used as a gauge for domestic growth because they are more sensitive to changes in economic conditions, such as input costs, wages, financial stress... Many were caught off guard by the equity rollover in early October, but few were paying attention to what was occurring. In late September, financial conditions began to tighten and credit...
God bless the legacy financial media because their uselessness is a blessing. Headline to headline is no way to live through live whether you trade oil or bitcoin. The click du jour is how the 2s/5s yield curve is now inverting, and the 10s/2s are at a mere 11 bps. I have been one of the largest flat curve-ers out there. Why? Because my process shows why the...
On October 30, I published "Stronger Dollar Themes To Continue" for my subscribers, which gave a unique approach to why the dollar is rallying even tho traders foresee Fed policy getting dovish: credit spreads. "Now, when comparing credit spreads to the financial crisis it doesn't seem to be "that big." Combine record U.S. corporate debt, a highly distorted...
HYG clear clear cannot be more clear cup and handle. How can you be long equities now, super risky.
Parity in play? Think so. Here's a small snippet from tonight's subscriber note: "Typically, U.S. corporations push dollars into Europe at the end of the month, and that is likely not going to happen. Stress will remain. I still believe the DXY could reach triple digits and EURUSD will retest 1.05. Potentially, I foresee a test of parity by mid-2019 unless...
Current convergence is Bullish to Neutral. Will the Bullish convergence hold?
Hi guys, thank you for the support! I will have this analysis out each weekend as well as daily updates throughout the week, if you guys like what I'm doing hit the "follow" button and you will get a notification each time I post a video or chart! Have a great day everyone!
Thank you to all my followers that take the time to read this with me. Some historical background on the importance of the 10 year Treasury Note Yield Index. (Hey, we all need to brush up on it from time to time) This is a ratio chart of SPY/TNX with a 9 year trend. As is the case with most charts related to interest rates, it's pretty technically perfect....
With the increased volatility this year after such a long period without any significant declines has got some wondering if the market has peaked, or even about to crash. To get a better idea of what’s going on ‘under the hood’, we can study the high yield ‘junk credit’ market. High yield is also known as ‘junk credit’ for its higher risk of default and being...
Important to note the High Yield Bonds broke the closing low from the Feb lows. This is very bad. Market down side continuation is almost assured. Considerable down side risk in these bonds.
Hi guys. It appears that HYG has lost its positive momentum and we're observing a possible roll over on the weekly chart. I'm not an expert and just want to share some observations. It's my understanding that HYG is almost like an index. I wish everyone good trading.