Wednesday, September 2, 2009

Junk is Beautiful

Reminds me of Sanford and Sons :)

JNK was a pick a few weeks back,

We entered the short on pattern and "fundamentals" that if the market broke, a flight to quality and away from Junk would occur. The market gets more and more insane as a top is neared, and JNK performed perfectly in that regard. Now it is performing perfectly ---on the short side, see notes on the chart.

However, this chart is even better, since a "Hanging Man" kicked off the bear party.

And thanks to Charts and Coffee, a technical blogger, who also points out that TLT, LQD, and HYG are good tickers to get on your radar. Maybe they even deserve their own watchlist. TBT is an Ultrashort...if you play any 2X or 3X realize there is large losses through time and fees, even if you are right on direction. Do not buy and hold, and think you can just come back in March and collect your spoils.

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Insightful and Useful Comment!