Dabbling in Debt

Fixed income ETF’s continue to show strength in a weak market.
I continue to add to my HYG position as the momo in this ETF has yet to wane.
After closing my LQD for a hefty gain, I’ve made a smaller reentry with a tight stop.
Emerging market debt continues to make solid gains, but the lack of volume in this issue makes it a terrible trading vehicle.
SHY is losing momentum, but I wouldn’t get short too quickly.
I’m nibbling at these Muni’s, but with such bleak economic news and weak volume, I’m just as liable to get short if the market moves against me.

Surprisingly enough, the debt market remains resilient in the face of mounting adversity. With so much potential for continued government intervention, the market favors debt to equity. Most of these issues have fundamental problems, but if Uncle Sam is putting in a bottom, then it is a risk I’m willing to take.