Stocks ‘N’ Bonds
A few things to watch in the coming week.
The spread between equities and bonds looks ready for a breakout, potentially to the upper Bollinger.
HYG, which I’ve been a big fan of since here, had an EXPLOSIVE day. Fixed income continues to provide stellar capital gains as investors scramble to grab yield in this 0% environment. Taking partial profits is probably a good idea, but such decisions are dependent on your trading time frame. 88 looks like MASSIVE resistance.
JNK is following in the footsteps of its higher quality brethren, so keep an eye on this lovely ETF.
The market has had a stellar run of late, and conditions continue to grow more bullish. Another day of pullback and consolidation would be healthy for the bulls, but I’ll let the tape do the talking. I’m maintaining a conservative position size per trade, but it is growing as the volatility decreases.