If you would like an email sent to you when I update the blog please send an email with "subscribe" in the subject line to traderbob58@gmail.com. To be removed use "unsubscribe".

Search This Blog or Web

Monday, June 10, 2013


There is a development in the high yield (aka junk bond) area.  Lets look at how the high yield ETF HYG and SPX look together.  Here is the first historical chart.

They actually track pretty well together.  The risk on trade include stocks and high yield bonds.  They both tend to cross their respective 200 MAs in close proximity in time.  Lets move up to the current picture.

They continued with that same price relationship up until now.  HYG has already dropped below its 200 SMA while SPX is still well above it.  Is SPX going to follow HYG down?  I have stated by the way the new high/low data was acting that we are likely headed to the 200 SMA for SPX.  I think the action in HYG is suggesting that might be possible.


No comments:


The information in this blog is provided for educational purposes only and is not to be construed as investment advice.