The action in the high yield corporate paper ETF, HYG, as well as the junk bond ETF, JNK, is enough to keep me from scooping up a bunch of longs for now in the equity market.
Even as the indices are bouncing, still within the context of an inside day discussed in my last post, junk and high yield corporate paper are hitting new correction lows. True, they are oversold now. But we have yet to see any type of commitment from buyers.
On the commodities front, natty, silver, coffee, and sugar are staging bounces worth watching.
What are you trading this morning?
In DUST Its trying to BO from a 1+ year wedge.
Long – $JO, $SGG, $UGAZ & small $GDX
Chess – I’m coasting today, so I might as well swim in the sewers. The lowest approval rated junk I know of.. http://youtu.be/BPFOHRH7weg (pretty safe for work)
What’s interesting is while HYG and JNK are getting hit look at FLOT and BKLN new highs credit isn’t really a problem it’s just a rotation within the bond market IMO