Forget about the market for a second and just focus on oil. Oil sub $40 will begin to truly wreak havoc on some energy credits out there, especially the high yield junk. At the moment, the high yield market is completely ignoring the dip in oil. This cannot last for too much longer.
One of the preferred methods of judging this is via HYG. As you can see, it has a bit of a rolling over look to it.
There are numerous ways to play this. I will formulate a strategy tonight.
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I’m pretty sure the market will get pounded into clown dust in the near future. In just a few days, weeks of gains will be erased. Isn’t that usually the way it goes? Hope I’m ready for it.
Dignity in Debt – a personal motto