Junk Bonds Chart, JNK, SJB Update

 

Here's a chart of junk bonds, as per JNK:

JNK is "the SPDR Barclays High Yield Bond ETF tracks a market-weighted index of highly liquid, high-yield U.S. dollar-denominated corporate bonds."

In the chart above, we see that JNK is up against a long-term downtrend (in black) and it looks like it'll collapse once the current uptrend (in red) is broken.

SJB is "the ProShares Short High Yield ETF provides inverse exposure, reset daily, to a modified market-value-weighted index comprising US-dollar-denominated corporate high-yield bonds with maturities between 3 and 15 years."

Earlier this month we noted that SJB had broken a 7-month downtrend at that we had entered a long position in SJB (effectively shorting junk bonds).

In the chart below, we see what could be support for SJB (in black) and the former downtrend likely broken (in green):

Typically a chart like this one resolves upward, and for us it's not a question of "if" junk bonds will collapse and SJB skyrocket.  As for when that'll happen, it's anyone's guess but to us the current setup in equities, in bonds (see recent TBT chart and commentary within the previous link) and in junk bonds looks very good. 

We remain long TBT and SJB as previously diarized, in order to effectively short bonds and junk bonds, with no stop levels in mind as of yet.  We'd be more likely to add considerably rather than sell at a loss if these drop materially. 



 

 

 

 

 

 



We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the positions we do, or for mentioning any positions or publicly traded companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

Please presume that we, she, he, I, it, them, they, us and you are purely fictional characters and that everything written in this blog is satire intended for comedic amusement only, and not to be taken seriously in any way. Just like "real" analyst proclamations. Thank you.

To be notified when this blog is updated :
Please e-mail christianguinness@hotmail.com with "Subscribe to blog" in the subject line or click here to do so automatically if your computer is configured accordingly. We have never shared our mailing list with anyone, nor will we. Please note that we only send update notifications when a trade idea is diarized or updated materially, not if a posting only contains general commentary.

This publication has been prepared solely for informational purposes and is made available on an "as is" basis. RidingTheGravyTrain (RtGT) does not make any warranty or representation regarding the information. The material is proprietary and without prior written permission from RtGT it may not be reproduced, copied, modified, performed, published, distributed or broadcast, in whole or in part, in any form, other than for your own personal, non-commercial use.

Nothing in this publication is intended to constitute legal, tax, securities, or investment advice, or an opinion regarding the appropriateness of any investment, nor a solicitation of any type. Nothing in these pages constitutes an offer or a solicitation to buy or sell a security nor is it to be construed as investment advice.

RtGT is not an investment advisor. The general opinions and information contained herein should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional concerning your own situation and any specific investment questions you may have. RtGT cannot guarantee the future performance of any investment.