This is the second week in a roll solid inflows into corporate bonds. This is a bullish indicator for the broad markets. I used 2 weekly charts with different indicators. This is not leading the market lower which it should be.
Perhaps this is another dead-cat bounce?
These custom support resistance indicator lines show decent places to enter or exit.
The Blue indicator line serves as a Bullish Trend setter.
If your instrument closes above the Blue line, we think about going Long.
If your instrument closes below the Red line, we think about Shorting.
For Stocks, I prefer to use the ...
This level still looks to be elevated and I expect it to retest the recent low and eventually head towards 7.05
I would be a seller of $spy right here.
Note that this instrument is now trading below the Red Support line. In the past, such breaks, on several occasions were accompanied by a sell-off in risk assets, such as stocks.
This is one chart worth watching . I overlayed SPX on JNK bonds. JNK bonds are breaking down. If you look at the overlay of weekly chart, SPX is making all time highs every few days and Junk bonds did not move much. Now chikou is below price and daily chart is bearish. Macd has been diverging for a while. The divergence is going on forever and one or the other ...
With the backdrop of economic expansion, loose monetary policies and positive sentiment among investors, huge amounts of money flowed into corporate bonds.
To be exact, high yield "Junk" corporate bonds.
The EXIT door might be too small for these investors if there is a mad rush for the exits.
Prices have completed a textbook a-b-c retracement since its low in ...
See chart. Note the timing in cycle days between the last one and this one, and all of them actually, surprisingly similar, wow what a cycle. Exactly the same, if we of course break down now. Equities have to bow to this leader. Our vix bottom indicator is actually below the extreme levels of past bubble bursts. No where to go but down (chart), and up on the ...
Spreads are far too tight considering current credit quality. Oil is not cooperating, and although it's being used as a duration haven, I believe high yield bonds are poised to take a bath here. Short to 35, and take half with a tight trail. ATM Sep puts may be the best way to play it, with a 8/1 risk reward.
TA shows ascending wedge exhaustion on the retest, ...
Should price move below the pivot low of 35.94, without making a new high, this short setup will be valid. Price should retrace at least the entire wedge, but more likely the entire move from 31.
