4 Comments

1. 

   Chris Kimble on 03/03/2011 at 10:29 AM

   Scott…
   1) yes. I will rent them until support is taken out. 2) no objection to JNK, just that it has greater swings than the funds. Keep in mind, not only do I like them to own, THEY ARE PRETTY DARN GOOD LEADING TOOLS PER THE DIRECTION OF EQUITIES! The strength in the high yields at this time remains a decent sign for stocks. Many people have ask me “why not be loading up to score on defense” right now? With high yields still acting ok, the patterns suggest that a heavy short/net short positions is a tad bit aggresive at this point in time. High yields start breaking down…look out below in stocks!!!

2. 

   Chris Kimble on 03/03/2011 at 10:22 AM

   cjk…most high yield funds track pretty well together, yet some do have style drift. That is why I look at 6 of them, to get a broader since than just looking at one fund. In the case of the Pioneer fund in the lower left, you can see it has outpaced the other 5. I suspect this is due to an equity exposure in the fund itself. I have been enting the high yields as “advance and protecting” investments since the late 90’s. Not in love with them, yet they sure can help inflate portolios during postive trends! Several EMA lines will work..the question is “how fast do you want to react” to short term movements!

3. 

   cjk on 03/02/2011 at 10:28 PM

   Hi Chris,

   I can see where these can be an investor’s “bread and butter.” I was looking at one offered through my retirement plan and found that the 20-day SMA appeared to be a good buy/sell indicator based on the last few years. Obviously, you have a lot of experience and prefer the 50-day EMA. I need to compare them. Can the particular fund make a difference?

   Thanks,
   Craig

4. 

   Scott on 03/02/2011 at 8:07 PM

   Chris, two questions:

   1) If you weren’t yet invested in high yields, would you initiate a new position in them at this point in time?

   2) Do you have any objection against the JNK etf to stand in for these?