I published this "late" call back in February as HYG was bottoming. The chart then was the gray triangles. At the time, we couldn't graph the DIVIDEND payments, so I painted them in blue "arcs" on the chart. The divs are on the first of every month and are roughly 45 cents each time +/-. Note that the ATR rose into "RISK" mode in mid-July as the price fell,...
There is a warning here for Bernanke about the market's perceptions about lending to corporate America. But for us traders, this is a decent risk-reward trade to short "junk bonds" and look for lower prices short term. It looks like buyers have stepped aside and now there is marginal selling going on in this market.
You can see the average range is picking up...
