Three weeks ago it looked like a “panic in the high yield” complex might have taken place, per the largest outflows in history being reported… at the same time these high yield funds were testing their 200-EMA lines. (see post here).   Panic at support???

Below is an update to the high yield 6-pack-


At the prior posting I shared that with the high yield funds setting on the 200-EMA lines, it would be a good place to buy the funds and use the 200-EMA line as a stop loss.  Now each of the high yield “funds” are not only back above their 200-EMA lines the majority of the funds are now back above the 50-EMA lines, which reflects positive price action.

Last summer high yield funds touched/broke the 200-EMA by a small percentage and then turned higher, soon breaking back above their 50-EMA…. looking very much like they are today.  Last year the upside movement in the high yields sent a good message to the broad market.

Game Plan….remain an owner of the high yield “funds” with the 200-EMA as the stop loss on the purchase of a few weeks ago.

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