Daily comment: 2/20/13 – Junk ETF’s Hold in despite Stock Selling

Before retiring tonight, I took a look at the HYG and JNK Etf’s, both high-yield bond ETF’s, and their respective changes today were a -0.10% and -0.12% respectively.

The SP 500 was down about 1.25%.

If the high yield credit sector hangs in, in terms of relative strength, expect the stock market downside to be limited.

Ive always thought junk was the early warning indicator or canary-in-the-coal-mine for the equity markets.

In fact the HYG and JNK ETF’s are oversold on the daily charts.

The HYD or high-yield muni ETF looks like it could have some downside in front of it.

Can’t believe sequestration would be good for municipal governments or muni credits.

Wal-Mart (WMT) reports before the bell on Thursday, Feb 21.

Thanks for reading,

Brian

 

 

 

 

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