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High yield ETF’s (JNK & HYG) are both on 16-month support lines in the 2-pack above. Each time these declines have taken place of late, it reflected a buying opportunity? Different this time?
An FYI– as mentioned in the chart above, I believe that the “High Yield Funds” reflect much better buying and selling signals. Volume in the above ETF’s can cause movements that can send off false signals. At this time the funds price movement looks a good deal different, not reflecting weakness at this time. When the high yield funds and “Shoe Box” indicator break down, this is when the market could be in trouble.
The “Shoe Box” indicator is a Proprietary tool, that tends to change directions, before stocks do, at key market highs and lows. This tool is shared with Premium Members on a weekly basis.
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This chart reflects that the yields in the high yield complex are low (lower than 2007). With yields this low, if the high yield funds should end up breaking down, that event would have my attention, reflecting a potential signal that capital protection is very important.
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