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Preferred ETF (PFF) is breaking above a key falling resistance line after creating a higher low of late. Nice price action and this ETF is paying a pretty sweet dividend too!
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AJM…Thanks for the viewership and kind words.
Per PFF, support break took us out, great move to harvest when you did A!!!
All the best,
Chris
Chris,
First off, many thanks to you for this blog; you truly have something special going here and your insights are much appreciated. Any update to this chart? Picked this up shortly after this post and it is back down where it started. Sold today at break even (up with dividend) and looking for next good entry. Thanks again…
Alex…Thanks.
Don’t be surprised to see EEM do rather well!!! Testing a breakout as support at its 23% fib level… A 500 chanel breakout/Dollar weakness situation could see the poor performing EEM ETF do very well!
Chris
Thank you Chris, this and the very insightful post on the $ that you just put-out – in a very powerfully predictive way, as shortly after reading a few hours back, the $ collapsed by 100 pips against major currencies – does seem to indicate that we are heading into a risk-on phase with commodities, High Yield and Equities showing strength.
Alex…Thanks for your viewership, kind words and this great observation!
How PFF/Preferreds act, I feel is very, very important and a positive if they move higher! The broad market needs them, almost like it needs the banks to go along for a ride. High yields fall into the PFF, need them to go along category too. I often share a high yeild mutual fund 6-pack….these are knocking on the door, per breaking above their 50-day EMA lines…this would be a positive for the broad market.
So per your question, PFF and high yields moving higher is good news for the broad market!
Thanks again,
Chris
First, wanted to say that you run a great blog, with a very experienced, fun and insightful look at the markets. Second, I wanted to get your wisdom on what this breakout might mean to the general market. I have had this as one of very few of divergent indicators I monitor closely. The rest of the pack (some of which very well described in your recent posts: Shanghai, Copper, Silver, UUP,…) all firmly pointing to imminent breakdown. For me, in periods of stress, liquidity contracts, and investors withdraw faster from non-ords. What does your experience tell you on what could a confirmed breakout in Prefs mean?
Again, great blog and great work.
Rgds