Huge Disconect Between Stocks and Junk BondsWhen we have seen a big disconnect between stocks and junk bonds it did not end well for stock. Watch out if the yield curve starts to steepen.
Key stats
About SPDR Bloomberg High Yield Bond ETF
Expense ratio
0.40%
Home page
Inception date
Nov 28, 2007
ISIN
US78468R6229
JNK, as one of the first to launch in the space, is a hugely popular high-yield corporate bond fund. The ETF provides a liquid and more cost-efficient way to access high yield exposure than individual bonds. The index the ETF tracks publicly issued USD denominated, non-investment grade, fixed-rate, taxable bonds that have a maturity between 1-15 years. The underlying portfolio is one of the broadest in the segment, and the funds yield, duration, and credit risk tend to align with those of our benchmark. The ETF is rebalanced on the last business day of each month. JNK investors need to consider total all-in costs when making comparisons to other funds,
Classification
What's in the fund
Exposure type
Corporate
Stocks0.21%
Communications0.19%
Finance0.01%
Electronic Technology0.00%
Energy Minerals0.00%
Bonds, Cash & Other99.79%
Corporate99.17%
Mutual fund0.55%
Loans0.07%
Miscellaneous0.01%
Cash−0.01%
Leading Indicator list shows more downside to be expected... Heads up... all supports and resistances are being broken.
Very quick take... equities going down! other markets will follow suit accordingly.
JNK Bonds Cracking! Bad JUJU!First off this is an updated chart. Here is the original chart I posted here on TV back on Jan 5, 2022
I typically hate wedges. They have a tendency to break one way and then reverse the other. Having said that The fundamentals right now compel me to post this chart as bearish.
People have this
Junk Bonds Breaking Key AreaJunk Bonds have been artificially propped up by FED buying.
As inflation roars and the FED is way behind the curve, this key
area breaking is not what Zombie companies want to see.
Markets are in trouble. As I have been warning for months now.
CAUTION!
JNK – High Yield Bond ETFOne of the more important charts out there.
The JNK etf shows the investor sentiment based on the interest in high-yield debt. Considering the expectation for the number of defaults to increase, the fact this is not selling off and the spread looking bottom could possibly be a confirmation of the s
Good news for stocks, bonds are bottoming $JNKAMEX:JNK is an ETF that tracks rated high-yield bonds or "junk bonds". These are the bonds rated Ba1 & BB+ by Moody's Investors Service, Inc., & Fitch Inc. respectively.
The bullish divergence with the ROC is pointing out that a bottom is near.
Bonds bottoming is a good sign for the market and br
Risk off Risk OnJunk bonds to US Treasury 7-10 year bonds, a good proxy for risk on/risk off appetite and a good parallel to SPY action. Right now, we are due a risk off pullback, but the longer trend (Gann trend line and Ichimoku cloud) indicate a risk on environment will be soon to follow.
A silver lining amongst all the negativity A relative comparison between the DJI, JNK & DJT is showing some underlying strength building in the market. This is also known as a "risk on" sentiment and that's when high risk assets do very well
Junk Early ReversalJunk is one of my favorite indicators for risk assets. If junk confirms this reversal we should see a rally in stocks and crypto. Very early days. A few more weeks should show a confirmation.
JNK H&S measured move to 85?It looks like the bond market is making lower lows, and China HSI as well. These are usually leading indicators telling us that risk on assets will also make lower lows.
But I believe the end is near, as you can see on the chart. This could also be a max pain fakeout as we are back testing the down
See all ideas