ISHARES IBOXX $ HIGH YIELD CORPORATE BOND ETF

HYG has closed below the trend line ....WITH volume. targets are listed. Last time it broke it moved fast. This almost looks like a larger term retesting of neckline of the previous leaning topping pattern from 2013-15 Enjoy if this triggers it will be fun

$SPY $TLT Looks like treasuries could rally against hyg. This is a correction in a down trend though for tlt. Supports theory that spy is also in a correction mode, but also in an upward trend

I don't think it's bad timing to enter today. But given the low volatility and my holding period, I would like to take the risk and wait for a little longer.

The breakdown in HYG even as the DOW is making new highs suggests a divergence that can only be reconciled with a correction in the DOW. Note the extremely high volume in the down days for HYG, which serves as a confirmation on the downside. If the FED really does raise the Fed Funds Rate in December (which I think to be unlikely), we will see another steep ...

HYG APPROACHING SUPPORT

There is no question that credit markets have been distorted for a long-term, but, fortunately, if you are in tune with what is going on it help get you out of the way of a steam roller. High-yielding junk debt has been a huge trade this year as investors continued to seek yield despite valuations and a clear crowed trade. The chase for performance also led ...

We have an interesting pair trade here, you can take a short position in HYG, paired against a long in TLT to capture the profit from the spread closing. Right now, HYG moved too much, relative to TLT, so it's bound to correct back down, giving us a low risk trading opportunity. Position size should be enough to theoretically risk 0.5-1% of the account if price ...

Today we added a couple shorts, I'm posting the trades we currently have open but not providing entry/stop suggestions. Only trade them if you have a trading strategy, or, ask me if you're interested in learning more about the one we use (Tim West's 'Key Hidden Levels' and 'Time at mode'). We have some worrying bearish signals, so it's a good idea to have a ...

Little attention is being payed to HY...

High yield corporate bonds are at an interesting spot, if we get a new weekly low, we can go short as described on chart. You should wait for the market to open to enter the trade, don't place pending orders before then. Good luck! Ivan Labrie,

and spx500 needs to play some catch up, sharp turn down expected. The black line is very important to HYG, and it met resistance and was turned down hard.

Strong bearish divergence shown on both mac-d and rsi.

or pooping

According to the price action the 82,24 level could be a good support. The pullback shows a first leg up, AB, and a correction. A good entry in this retrace could bring to the 84 level as a possible target. I'm looking for an AB=CD pattern. The target is a resistance area too. Risk reware ratio 4,5. SL below 0,382 fib line.

http://www.bloomberg.com/news/articles/2016-04-05/the-coming-default-wave-is-shaping-up-to-be-among-most-painful http://www.cnbc.com/2016/04/07/socgen-warns-of-tidal-wave-of-corporate-default.html http://www.zerohedge.com/news/2016-03-28/ytd-corporate-default-jump-highest-2009 Credit ratings of the US firms are deteriorating fast-pace. This year we will see new ...

There was considerable capitulation across 'risk' assets this past week. The question is how far the towel is thrown. Merely a pause for liquidity or the snap from reality that spurs full profit taking?

As measured by the ratio between HYG (Junk Bonds) and TLT (US Government Bonds, 20 Year). HYG is now outperforming TLT by 14% from the extreme level as that seen in late 2008. Clearly the fears have outweighed the evidence for this disproportionate pricing of junk bonds. Back in 2008 we had financial firms closing their doors, Lehman, AIG, Bear Stearns, Banks ...

1.618 fib ext in to resistance and r2 daily