Below is the answer to a quiz originally posted on 9/3. (see post here) The quiz suggested to harvest LQD at the top of the large rising wedge.
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Below is an updated chart on LQD below…
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If the idea of “buying low and selling high” makes some sense and you are looking to add some bonds to a portfolio, LQD represents an interesting situation in the chart above at (3). As the chart suggested, buy LQD now with a stop on a break of support line (2).
cK…would agree on the LQD support price. Per the wedge, potential. If this is, the top of the wedge is still a few percent higher in price.
Hi Chris,
I estimate the support line at about 107.25. Is that about right?
Off topic – is there a rising wedge forming in SPX (beginning about Aug.2010)?
cK