Sharing the LQD chart for investment grade corporate bonds. Looking at the way interest rates are moving, if this breaks down, I would expect this to coincide with a short term top in equities. This is also matching up with some of the weakness TLT is currently showing.
AMEX:LQD A good time to become a bond holder, as central banks lower interest rates going into next year newer bonds get issued at lower interest making your existing bonds more valuable over time all whilst receiving a decent coupon paid out as a dividend.
AMEX:LQD The weeks not over yet but we do like LQD with a double bottom looking for a weekly close of the previous weeks high.
In part one (linked) we discussed how to construct and use relative strength ratios (RS) in trading and analysis. We also discussed common errors and best use. In part two we finish that general discussion. In part three we will analyze consumer staples verses consumers discretionary and begin to discuss other ratios that I find useful. How do spreads correct?...
US Interest Rates have been raised to 5.25% and inflation has fallen down to 5%... an inflection point has been reached, the US seems to have inflation under control ahead of the UK and the Euro zone. I'm buying the AMEX:LQD Investment Grade Corporate Bond ETF as newer issued bonds my be issued at lower interest rates, increasing the value of the bonds I'm...
The chart posted is that of debt in corp market lqd We bounced off the .618 in what looked to be a large ABC DECLINE .But it can also be counted now as wave 5 of 3 down which would mean we would see another leg down to 89. 8 soon
bearish head and shoulders pattern forming. the rise of the right shoulder is short term bullish. this is to test the previous resistances of Elliott Wave #3, and to test the previous support levels of (A) and (C)...I'm stalking a short entry near or slightly above those levels. Also goes with my theory of favoring short term corporate bonds. I think they are undervalued.
Corporate bonds or tradeable debt instruments issued by corporations are a type of fixed income security. Given the recent media attention and the rising demand for fixed income investments among retail investors, it may come as a surprise that they are not suitable for all investors. Corporate bonds have different risks associated with them than other fixed...
They are at their highest relative yield vs stocks in decades @ 2.71% and sitting on huge support. Stocks are still a short on any rally
A Catch-22 is a problem for which the only solution is denied by a circumstance inherent in the problem or by a rule. This is exactly the problem the Federal Reserve faces. Historic inflation continues to accelerate, becoming embedded into the market's expectations and risking a spiral effect In order to stop rapid inflation, and achieve its mandate of price...
We held and dropped into a .618 and waves a x 1.1618 = wave C We will now see a major up move keep stops at 117.40best of trades WAVETIMER BTW THIS SHOULD BE RATHER BULLISH FOR STOCK INDEXES
I am seeing a collapse in high grade Corp debt based on fib relationships the focus point is all at 117/118 if we break this then I think the whole thing comes apart for everything .
The chart posted you should keep an eye on as we pulled back to support at .382 of the rally from 2020 panic low in 3 waves down ABC decline
These data series are all available in the Trading View platform. Since the turn of the year the price of LQD, the investment grade corporate credit ETF, has declined nearly 10 points (-7.3%) and since early August is down 13 points (-10%). The important question is…. Why? Knowing how to monitor credit is an important skill, particularly since so many in the...
The idea is that some corporate bonds will get hurt next days/weeks. Increasing default rate as Free Cash Flow from operations is not growing enough to cover debt service.
Idea for Credit: - Stocks had a bit of a reprieve as China's collapsing property firms were halted for 2 weeks, and China's markets had gone on holiday for Golden week. - Stock market had an unwinding of hedges last week, but are things really 'Back to Normal'? - The bond market does not think so, and seems to be presaging more drawdown to come. - EM High Yield...
The chart posted is give a clear warning of new issues that are close to coming out !
Have to just wait and see. My ide is that we are in for a market top in late march 2022 and a very big bust there after.