Opening (IRA): HYG November 18th 69 Short Put... for a .42/contract credit. Comments: Targeting the strike paying around what the distribution would be were I to actually be holding shares. The last distribution was .351 per share; 5.19% annualized.Longby NaughtyPines0
HYG chart possibly firming upHYG hasn't made lower lows as the SPX. Just decoupling because HY is cheap or maybe the foreshadow of a bottom soon.Longby Peter-A110
BTC, SPX, RUT wide gap from HYG. We're up for a rude awakening dear fellows, it came to our attention the monthly chart of HYG, BTCUSDT, SPX, RUT. they all belong to the same class of speculative assets. of them, HYG is likely to have the greatest demand for liquidity as it lives out of refinancing its cash flow, let alone its debt. notice how 1. they are synchronized in what concerns the bottoms 2. HYG renewed the lows at each new bottom, never the highs at each top. 3. the others did the opposite this mismatch opened up a wide gap in the logarithmic scale of the y axis. the logarithmic scale shows how much percentually current level still can fall. thus, BTC, SPX and RUT still can fall more than they did already until they catch up with HYG. that is precisely the case of FED keeping current policy "until something brakes". that would be a rude, late, awakening for anyone not knowing where to look at for market health check. best regards.Short03:50by greenfield_br222
Short Term Bottom. Bond DivergenceGet ready for a short term reversal! Bonds making higher lows while equities make lower lows has been a tell tale sign of a short term bottom so far this year. As long as we see some follow through early next week, we should get a bounce lasting for at least a week.Longby mperri3290
Divergence Between $HYG and $SPXHere we have a study between the resulting move from a divergence between High Yield Corporate bonds ($HYG) and SPX. The bond market seems to be ahead of every move when compared to the broader market and hints at strong reversals when divergencies emerge. If we look at every big reversal the last few weeks, $HYG divergencies when compared to SPX have led to a strong reversal; whether $HYG is making higher lows while $SPX makes lower lows (bullish reversal on equities incoming) or $HYG makes lower highs while $SPX makes higher highs (bearish reversal on equities incoming). This is a great study to look at ahead of data as the bond market front runs the market! What is a High Yield Corporate Bond? A HYCB is a type of corporate bond that offers a higher rate of interest because of its higher risk of default. When companies with a greater estimated default risk issue bonds, they may be unable to obtain an investment-grade bond credit rating- sec.gov And in an environment where growth stocks have an obscure future given inflation and high interests rates which equates to drastic drops in consumer spending and economic strength, this is definitely something the market responds to quickly and swiftly. OptionsSwing Analyst Daniel Betancourt by optionsswing1110
Bullish Ascending TriangleHere is a nice example of a bullish Ascending Triangle. Put/Call ration is 4.31 and Open Interest in top 10 for Sept 16 expiry After that it's quad witching and FOMC so anything goes. Volatility I'm sure it's getting tightly wound for quad witching and Powell. Volatility gained strength today despite indexes being higher. My overall outlook for volatility is more compression into 4XOPEX & FOMC. CPI in AM could change outcome significantly to the up or down side. My idea is long 9/16 and short to end of Oct. by SPYvsGMEUpdated 1
HYG vs QQQStarting to see some short term deviation between Q's and HYG. So far this year bonds have been a leading indicator, with equities and tech following behind it. It led the bounce in June and hinted at the drop again mid august. Let's see if we can get some conformation here and hopefully some lower lows. Hint: look at when they crossShortby mperri3290
U.S. INTEREST RATES IN THE 2 YR 5 YR 10 YR HAVE TOPPEDTOP WAVE STRUCTURE the chart posted a week ago is very clear we have peaked in ALL interest rates and A major I..T. top in U.S. $ Iam 75 % net short the DXY at 109 I stated the alt target was 110.25 the original projection was 114/116 DO NOT BE LONG THE US $ THIS SHOULD BE A STRONG POSITIVE FOR BONDS STOCKS and ALL Metals move to a net long Silver copper gold platinum NOW rally to start or has begun .best of trades WAVETIMERShortby wavetimer882
JUNK BONDS HYG WAVE D .887 The chart posted is that of hyg the junk bond market . so far we all three waves within the structure . if we hold here at a .887 golden ration we would then see the last rally this market will see for years to come we would then see wave E UP THIS WOULD BE WAVE B TOP by wavetimer2
A bullish scenario for HYGThe iShares iBoxx $ High Yield Corporate Bond ETF seeks to track the investment results of an index composed of U.S. dollar-denominated, high yield corporate bonds. Longby UnknownUnicorn38289576110
A bullish scenario for HYGTake profit level: $80 HYG tracks a market-weighted index of US high-yield corporate debt. In general terms, HYG is a perfectly adequate high-yield corporate bond index ETF, with a reasonably good yield. Adequate does not mean good, as the fund compares unfavorably to most of its peers in three key metrics: expense ratio, dividend yield, and total shareholder returns. Longby UnknownUnicorn382895760
Looking for Short HYGHi Everyone, I'm waiting for Short if the break break the trend-line. Signals: - Price in Resistance. - Main Trend, Bearish. - Close to The top of the Bearish-Channel. Good Bye & Good Trading!!!Shortby Bluetrader_CSCUpdated 1
Short @ 77 Lately there's been a short covering rally in high yield/junk but I think that ends soon with big tech earnings, FOMC and all of the other economic data releases this week. Macroeconomic picture has not changed. Don't think we break this downward trend line that's been in place all year. I'll also take a long position in TLT to offset exposure. *Not financial advice. Shortby AxelrodKapital0
Junk Bonds are testing a 7 month old downward trendline!If you’re chasing portfolio income, you may be eyeing high-yield bonds, also known as junk bonds, which typically pay more interest but carry greater risk. Since interest rates and bond prices move in opposite directions, U.S. junk bond values have dipped to the lowest levels since May 2020. But yields are at 7.5% as of May 17, up from 4.42% since the beginning of January, according to the ICE Bank of America U.S. High-Yield Index. However, high-yield bonds have greater default risk than their investment-grade counterparts, meaning issuers may be less likely to cover interest payments and loans by the maturity date.by UnknownUnicorn382895760
A bearlish scenario for HYGThere are no bad bonds, only bad prices. So Dan Fuss, Loomis Sayles’ vice chairman, has often observed—a lesson gleaned from more than six decades of experience managing corporate bond portfolios. After what seems likely to go into the books as the worst first half of the year for fixed-income markets on record, prices now look a lot better from the standpoint of investors aiming to buy low. The savvy ones that sold high were major corporations that issued bonds at record-low yields in the past two years. Bond prices move inversely to their yields. So, with benchmark 10-year Treasury yields roughly doubling since the start of the year, to over 3%, and corporate-credit yield spreads increasing over risk-free government securities, corporate bond prices have fallen sharply.Longby UnknownUnicorn382895760
Spotted a correlation between High Yield Bonds and oilThey almost always trade exactly the same. And HYG has NEVER gone down without oil going down. Until right now. Wonder how long it will take to correct.by stockpreachermanUpdated 221
iShares iBoxx $ High Yield Corporate Bond bullishThis is an opinion from space view. (Monthly charts since inception) HYG bounced off massive down trend line. Its sleeping just under the support line off all previous down turn in SP500 since 2009. Are we out of the woods? Is there a liquidity a problem? Stores are packed and prices are going down and stabilizing. I think oil is the last thing to stand in the way of global restart. Longby MTL_INC110
Market has bottom according to HYG This is a monthly chart of the HYG with RSI. It hit an extreme low level on RSI only a few times in the last 12-13 years. The other times are March 2009, January 2016, December 2018 and March 2020. During these times, the equity market had rallied back up to all-time high after a correction or bear market. This could be a potential market bottom again and a buying opportunity. Remember it was gloom and doom in the news everywhere during all these instances. It looks the same this time. Remember trade what the chart tells you not the news. by Investor_NLUpdated 440
Risk-offWhenever HYG is moving down, it is telling us that the risk is off in the equity market. It is true for the current market condition. When this bottoms, then the market will bottom. by Investor_NLUpdated 0
Have corporate bonds bottomed?The Corporate bond market got extremely oversold and it bounced without the Fed having to pivot. Essentially the market got to 2013-2018 levels, and bounced nicely at the old support. But we still don't know whether the bottom is in or now, as there are more questions that need to be answered, like: Does the market expect the Fed to reverse course soon? Does the market think the bottom is in for bond yields? Does it think inflation has peaked? In my opinion the market did the tightening itself without the Fed. The Fed did a mistake for not raising rates and ending QE faster, however they were right on their approach to go slowly, as one way or another inflation would slow down. By inflation slowing down down I don't mean that prices will go down, just that prices will go up a lot less than they did over the last 1-2 years. At the same time I do believe that as inflation comes down, it is possible that we get to see the Fed say that they will pause their hikes after raising them to around 2% and will let their balance sheet roll off on its own. Essentially higher interest rates, lower asset prices, tight fiscal and monetary policy, and already high energy prices are crushing demand. The Fed was/is behind the curve, but as the curve seems to be now moving to the direction of the Fed. To a large extend their objective has been achieved, as this correction was similar to the 2018 correction, only that this time around the correction was welcomed when back then it wasn't. Now I don't really think the bottom is in for corporate bonds, however I also don't think they are going to roll over very quickly. If the food & energy crisis gets worse, I have no doubt that these will get crushed. It just seems that in the short-medium term things will cool down a bit and part of them Fed's goals have been achieved. The US economy remains fairly strong and its corporations are in a fairly good shape, despite everything that has been going in the world over the last few years. Having said all that I don't want to be a buyer of HYG at 80. At those levels I think it is better to short and aim for 77-78, and then if the price action looks decent, go long at those levels. The bounce is too sharp for it to have legs to go higher immediately. I'd expect more chop in the 75-81 area before the market decides whether it is going to go higher or lower. by BitcoinMacro441
The confidence that the worst is overAlthough stocks fooled around all day yesterday until they were bought off, high-yield bonds rose, breaking further and further from the lows. This once again underlines our thesis that the demand for government bonds is caused not only by the desire of investors to escape from risk (as some people think), but by the confidence that the worst is over. Because inflation will also decline, and the Fed's position will gradually soften. Otherwise, only 10-year government bonds would rise (making the curve flat), and high-yield bonds would not rise.by Index-Capital1
Junk bonds, very good indicator for a liquidity crisis - 1929.2I wanna just short everything that moves. junk bonds look like 1929 free fall, when they break first support gonna be ugly. Fed is gonna squeeze us to our knees. if everything so good why junk bonds not mooning lmao. Implode quick (vix 80) to start recovery sooner. bruh this recession can be spotted by blind man. xoxoShortby CryptoTradingMania113
First look at BONDS!!! Then you'll understand equities! Bond yields often broadcast a pulse on global economic and geopolitical events long before the equities markets! Most market observers are already keeping 10yr Tsy yields on their radar, and of course the 3mth Bills/10yr Tsy spread as the key indicator of curve 'steepness' or 'inversion'. But especially as the Fed starts unloading bonds from its balance sheet, another metric to have front and center on the radar is 'credit spreads'. The chart of the High Yield ETF (HYG) vs the Investment Grade ETF (LQD) is a rough measure, for sure, but noteworthy nonetheless. It's noteworthy that credit spreads have already widened, with the spread on this ETF differential already back to 2019 levels! Ever since the start of Covid when the Fed all but assured the market that they'd underwrite corporate credits in order to avoid Covid-induced defaults, credit spreads have come crashing in, with some companies boasting the title 'zombies' given that they had no cashflow to sustain their debt load! Well, now with the Fed in 'kill inflation and tighten financial conditions' mode, credit matters once again! This is not to say that a credit crisis is over the horizon, but it does suggest that 'risk pricing' is returning to asset pricing! And the more that we see that in bond markets, one can be pretty certain that we'll continue to see it in equity markets.by trader_investr332