To gain an edge, this is what you need to know today.
JOBLESS CLAIMS
Jobless Claims came at 6.648 million vs. 2.8 million consensus.
In general, stock market investors should pay attention to jobless claims. In normal times for the stock market, jobless claims carry heavy weight in our Asset Allocation Model. There are two reasons for stock market investors...
No one wants to be last one standing when the music stops. Studying the AD, money is fleeing Corp Bonds... They just got bailed out, and likely will resume share repurchase programs, and pension fund manager can continue to invest in high yield, why? Because the Gov't has shown us time and time again, they will come to the rescue.
There is a bearish divergence...
Trump is meeting with bank CEOs today to discuss how to support small-cap companies with large debt burdens. The high-yield junk bond market has been bleeding lately because many of these bonds are expected to go into default later this year. However, if Trump's meeting produces some kind of stimulus or bailout, we might see this market rally. Cheap March 13 or...
Placed this short early last week, going to add to the position if it bounces back to $86. With the recent oil sell off and given 15% of this HYG debt is in oil, it is another sign a sell off is due.
With my low-yielding TLT position reaching all-time highs (and its yield reaching lows), looking to get out of my TLT stock at some point in the next few months and get into higher yielding junk, preferably at a discount over where it's currently trading.
Pictured here is an acquisitional strategy where you look to sell equally delta'd strikes laddered out in...
HYG remains a strong sell.
Analysis Method: Fibonacci & Wave Theory
Monthly Chart:
High Wave Count:
Daily:
33 EMA Cross 50 EMA
Target: $67-$54
Will update.
FMW
