Viewers of this blog and Dshort over the past year are well aware that the High Yield mutuals funds have been a very good leading indicator for the stock market. Below is an update on the High Yield mutual funds.
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High yields have given back a little in price of late. At this time the high yields remain above key support and the 50-EMA line. A few negative snowflakes are starting to fall, yet if history is any guide from a High Yield fund perspective, no major warning sign has taken place. I will continue to rent the high yields until support/50-EMA is broken.
Stemphos…Not real impressed with MUB or VKQ.
cjk…High yields ETF’s have acted very strong this week, especially though the high yields “MUTUAL FUNDS” that I like to use a guide for overall stock market weakness. As I have been suggesting for months and months, I would be an owner of these bonds and plan on selling only when support and key EMA lines break to the downside. The movement in the high yield ETF’s is something that I don’t care to use, per determining my positions. As you know, my line in the sand is determined by the high yield mutual funds.
The etf JNK (high yield bond fund)has been right at long-term support(~$40.40)since it dropped $0.30 late Tuesday. The yield is 10.25%. This appears to be situation where one could own this for its high yield and place a very tight protective stop (~$40.20).
Hi Chris,
What do you think about Muni bonds?
stemphos