ISHARES TRUST IBOXX USD INVESTMENT GRADE CORP BOND ETF

NYSE ARCA & MKT

LQD

LQD which tracks BBB-rated corporate bonds is reversing at the top of a a channel which started in 2012 when global central banks launched their QE forever campaign (Twist, Whatever it takes, ETF buying etc). You can see LQD break below a SSR near the top of a channel with negative short-term trend. Lots of reasons to be bearish for corporate bonds, higher...

A VERY STRONG NON CONFIRMATION IN RSI IS NOW SETUP IN BOND MARKET SHOULD BE A NEG FOR STOCKS ?????

As inflation (measured by the CPI) accelerates into the back half of 2019, compression of real rates along with decelerating corporate earnings will put downward pressure on investment grade credit.

Last Oct I published a series of charts named “The preponderance of evidence”, I think it is time for a new series. I think the charts itself should be self explanatory. Feel free to drop me a line on what you think. When 50% of IG bonds are BBB rated, 1 notch above junk, are you sure you are getting what you think you are buying? #lemonalert

May's "Risk Off" has catapulted Long-Term Corporate Bonds (LQD) and 20+ Year Treasury Bonds (TLT) into two of the top 5 performing assets YTD: LT Corp Bonds: +10.41% 20+Year Treasuries: +9.02%

In my previous LQD study I outlined a possibility to use the LQD as a leading indicator for equities. Looking at the daily chart a few weeks later we can see that the price is within a well defined wedge. Perhaps, the next week will bring a test of the wedge boundary. If there is an impulse breakdown it would be worth watching its effect on the direction of...

SPX VS IG AND HY BONDS ... calibrated also with treasury similar duration.

Credit markets are looking rather frothy today; might be time to grab a life jacket and get out. Bear in mind that junk bonds also have a high directional correlation to the equity markets. Take heed.

LQD is an ETF that tracks investment grade corporate bonds. www.ishares.com In this study I compare the LQD with SPY that tracks S&P 500 index. Upon review of turning points one can conclude that the corporate bonds start to go down first and recover first hinting the broader market...

LQD

From a quick look at the US Bonds (LQD as a proxy) and US Equities (SPY as proxy) price ratio, it seems like money is moving slowing moving back into bonds at the moment. This is most likely due to the poor global economic data that has come out in recent weeks. Time will tell as to whether or not this trend continues. But for now, bonds seem to be the asset of...

NYSE FINRA LQD short sales analysis ...

Risk off in US corp debt could suggest a larger slowdown.

I don't just mean for Investment grade bonds. This will have a profound impact on $spy as well. Co's have been borrowing cheap to buy back stock and issue dividends. This manufactured earnings era will come to an end. Without buybacks, the market will struggle. We will see a recession again, probably withing 12-18 months. How much forward demand has been...

Consolidating, Bollinger Breakout, Volume Increase- We Shall See....

- just a rough idea, if credit started to widen and back to 2016 level .. SPX still a lot more room to dive - it will be more than systematic issue if credit get worse - Bull has to fix the market asap as both LQD/HYG is nosediving now

Above 117.75 Target 118.50 and 119 Below 116.40 Target 115.60 possibly 112.85

Trade carefully. Looks like bond will follow the new parallel channel. I marked then as LIGHT GREEN Lines. Also a dotted red line incase any one of u want 2 short safely. I would like to wait for few months or weeks till the price breaks the deep green line and then hits the lower channel light green line to go long. But if the lower green support line has been...