For the old school types who believe that the credit market guys are more rigorous and know better than their younger, dumber cousins in equities, again consider the weakness in high yield corporate paper and junk.
We have been thwacking their derivative ETF’s for a while now, and the persistent weakness.
On the updated daily charts, below, note the mini-crashes of late, with nary a day in the green for weeks on end.
Even this morning, with a gap lower in equities being dipped, and GPRO trading in its own planet squeezing shorts into another galaxy, they remain red.
I am flat equities here, focused on a natural gas long.
But if we see stocks roll back over this afternoon I will have more conviction shorting again given the real weakness in high yield corporates and junk.