Junk Bonds – Bullish wicks form after rare performance spread!

 junkbondbullishwickatsupportdec17

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If one likes the idea of buying low and selling higher, junk bonds might come to mind due to how hard they've been hit of late! The chart below highlights that an unusual and large performance spread between JNK and the S&P 500. Its not often that these two see a 10% return difference in just 60 days. This differential wasn't the only thing that got my attention though.....see comments below.

performancejunkvsspydec18

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At the same time junk was doing so poorly, the decline took both JNK & HYG down to levels not seen since 2012 and momentum is the most oversold in the past 5 years.

Premium members bought JNK because of these conditions mentioned above, as JNK was creating bullish wicks at 2012 levels. Junk bonds are often viewed as leading indicators for the broad market and these bullish wicks were nice to spot after such a rare performance spread was at hand.

This opportunity was also shared on Stocktwits yesterday. (see here) Would be honored if you would follow me along with others at this cool site. (Here) 

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See more of our research at Kimble Charting Solutions

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5th longest period in 50 years without a 10% correction, important test at hand!

 seeitmarket5thlongestwithout10percentdec17

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It's been 38 months since the S&P 500 had a 10% correction. This is the 5th longest period without a 10% correction in the past 50 years.

The trend is up and a couple of key tests of resistance are at hand. See full article HERE, at See It Markets

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If Crude Oil hits $35, which countries could be impacted the most?

crudeoilwhichcountrycouldthishurtdec17

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Crude Oil has traded inside of rising channel (A) for the past couple of decades and not even the financial crisis in 2009 could cause Crude Oil to break support of this rising channel.

The break below the multi-year pennant pattern a couple of months ago has caused a good deal of selling in the Crude complex, as it falls like a knife. Crude didn't even pause as it was slicing through channel (A) support.

Almost 90 days ago, when Crude was trading above $90, the Power of the Pattern suggested that a break of support could send Crude down to $70 at least. (See post here) 

For nearly 20 years, Crude traded inside of sideways channel (1), which was tested as support back in 2009. With Crude breaking down, the next long-term support comes into play could be channel (1), around the $35 level, which was hit in 2009.

What countries will be impacted by lower oil prices? Yes Russia and Saudi Arabia could be impacted, don't forget that the United States could too!

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See more of our website and further research...Here

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