I am back to cash after taking 2.7% and 5.2% losses on my shorts, wiping the slate clean into the market’s gap higher which is holding, thus far.
You can see the high yield corporate paper ETF, below, also sporting a gap up this morning.
However, this one faded off of what looked like a fat finger/algo-gone-wild trade. When you see a candle like the one below, it is tough to do much of anything–The chart is still damaged but now is clearly stop-running shorts to the upside and doing some cleaning work before the next real move.
I still think junk and high yield corporates are key parts of the fixed income market to watch going forward, related to equities.
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Bad tick? If so, likely to be corrected after today.
Saw it across multiple charting platforms.
Ahhh, okay. Valid point. I use eSignal and it is on there as well.
The Algos are relentless as they battle each other! Look at TLT last week as hedge funds covered in mass. WTF??? Why bother anymore. The programmed algos eat billions of real human dollars per minute. Sucks being a trader now.