MarketGauge.com

Why Follow Junk Bonds?

April 24, 2024

Mish's Daily

By Mish Schneider

Bonds issued by companies with a credit rating of BB or lower by S&P or Fitch, or Ba or lower by Moody's, are considered junk bonds.

Junk bonds, or high-yield bonds because the interest payments are higher than for the average corporate bond, pay high interest rates to entice investors to take on the greater risk of lending them money.

Doesn’t that sound like an excellent reason we use junk bonds as a reliable way to assess risk on or off?

5 Key Takeaways from this chart

While HYG has yet to clear the January 6-month calendar range, it sits (for the 2^nd time) just under the 6-month calendar range low.
HYG held the 200-DMA and 75.50 which is now major support.
HYG had a mean reversion in momentum and currently sits in alignment with price (above the 200-DMA)
The July 6 month calendar range you see if you look to the left, is acting, along with the current 200-DMA, as support.
Under 75.50 risk will turn to off. Currently risk is more neutral. And a move over 77.00 or the 50-DMA will change the scenario to risk on.

For more detailed trading information about our blended models, tools, and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.
-

Traders World Fintech Awards
-

Get your copy of
Plant Your Money Tree: A Guide to Growing Your Wealth

Grow Your Wealth Today and Plant Your Money Tree!

"I grew my money tree and so can you!"- Mish Schneider

-
Mish in the Media - All clips here

Business First AM Mish covers regional banks, the small caps, value stocks, retail and bitcoin-with levels for you to act upon 04-23-24

Singapore Breakfast Bites Where are rates going? Mish talks about the higher for longer and why the FED could pivot on that 04-19-24

Neil Cavuto Coast to Coast Fox All About Netflix-Mish predicted that the stock peaked BEFORE the earnings report 04-18-24

Schwab Network Where the consumer will go next to spend money with Nicole Petallides 04-17-24

CMC Markets Technical trading-what how mish points out why the dollar could peak against the Yen 04-17-24

Stockpick.app Partial-sign up for the app and hear the analysis every week 04-15-24

Kitco News with Jeremy Szafron A clear explanation on why gold is up, inflation, Fed’s next moves and where things are going from here 04-13-24

CMC Markets Take a ride with Mish and she goes through commodities, indices and currencies and gives you a short-term game plan using long term bias 04-10-24

CNBC Asia Inflation is Coming Which bodes well for industrial and precious metals.04-10-24

Making Money With Charles Payne Mish talks about small and mid-cap stocks and why sticking to companies with strong balance sheets and earnings growth makes for best investments 04-02-24

CNBC Worldwide Exchange Tesla is one aspect of a much larger megatrend in EVs. Mish covers the advantages/disadvantages of the company and the space 04-02-24

Coming Up:

April 25 FOREX Trader’s Summit Pre Market with Dale Pinkert

April 25 Malaysia radio

April 26 Live Coaching for MG members

April 30 Real Vision Daily Briefing

May 3 Benzinga Pre Market Prep

Weekly: Business First AM, CMC Markets, and new to us-stockpick.app

ETF Summary

S&P 500 (SPY) 500 now support

Russell 2000 (IWM) 200-202 resistance

Dow (DIA) 388 resistance

Nasdaq (QQQ) 430 resistance