September 16, 2009 7:37 PM
In keeping with our recent focus on the possibility that junk bonds may be signaling a decline in stocks, we present Daneric’s chart showing the possibility of an exhaustion gap in junk bonds:
Click here to see enlarged chart.
“if they happen during a bull move, some bullish euphoria overcomes trades, and buyers cannot get enough of that stock. The prices gap up with huge volume; then, there is great profit taking and the demand for the stock totally dries up.”
Is that what we are seeing in junk bonds right now?
More on this topic
(What's this?)
On Junk Bonds
(ValueWalk.com, 1/27/12)
High Yield Bonds – Risk vs. Return? (Kocik)
(GreenLightAdvisor Views, 10/25/11)
Threadneedle stays defensive in high yield bonds
(Hedge Fund Blogs From HedgeCo.Net, 7/6/09)
Appetite For U.S. High Yield Bond ETFs Remains High as Yields Tighten
(Wall Street Sector Selector, 5/11/11)
