An Ongoing Negative Divergence for Stocks

The ratio of Junk to long-term Treasury bonds is an indicator of the will to speculate in financial markets.

Is the large relative sell volume a sign of capitulation prior to a new stock rally as it was in June, or does it mean business this time?

hyg, tlt

Regardless, Junk/Treasury ratios have been negatively diverging the stock market ever since Trump was elected president. So let’s not blame this negatively diverging market indicator on what is going on currently between our Tweeter-in-Chief (TiC) and North Korea’s Lunatic-in-Chief (LiC).

hyg/tlt, spx

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