Hi friends! Welcome to this never-before-seen analysis, on the High Yield Corporate Bond market, via the weekly chart for the HYG ETF! Let's get right to it!
Looking at the high yield corporate bond market, we can immediately see that the technical picture is quite grim. We have a very clear, massive head and shoulders pattern that is currently developing. ...
Expect a small climb or some consolidation to allow for the oscillators to reach close to overbought and/or recoil on the down trend line.
Look to short in or above the value zone- reviewing the oscillators.
Stop Loss 1.5 ATR Channel
THIS IS A CHART OF THE HIGH YIELD MARKETS FOR THE LAST YEAR PLUS THE WARING SIGNAL . IF WE BREAK THIS THEN THE ODDS OF A REAL CRASH IN THE SP IS AT 100 % AND THAT MY PANIC CYCLE DUE DEC 11 WILL HAVE MINOR SHIFT TO DEC 29 AND THEN A FINAL WASH INTO THE NEXT SPIRAL DUE JAN 14 FROM MY SPIRAL OF 4/2/ 2018 WE THEN SEE A WORLD WIDE DEPRESSION
Hilarious drop and bounce back for corporate bonds. Missed out on that one, HYG has low options premiums. Also, note how it drops after rate hikes are announced, no anticipation at all so there's an opportunity there in the future as well.
If any of my followers are bond experts, feel free to chime in. Thanks.
Looks like weakness is beginning to show up in junk bonds, which in turn, does not bode well for stocks or other risky assets.
It looks like the recent selloff is not just due to market overreaction, but more due to a shift in market sentiment to the downside.
If this persists, look for more downside in Junk and other risky assets.
HYG is bearish and price is back to an optimal sell level.
Btw why do you think US 2y/5y yield spread is tradig negative (inverted curve) and 2y/10y flattened to 13,6 basis points???
The alarm is ringing louder.
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