indicators

Speculation is Intact by Junk Bond Indicators

Nominal Junk Bonds (HYG) show risk (and speculation) ‘on’…

With a thus far small easing of the speculative froth lately, Junk Bond indicators continue to not yet show cracks in the speculative market’s veneer.

Nominal Junk is moving sideways above the SMA 50 and Junk/Treasury and Junk/IG are as yet merely pulling back from over enthusiastic readings.

Doesn’t mean a correction cannot start but it does mean that it is not yet evident in these particular indicators. In the best case a negative divergence in indicators like this while the public-facing broad market continues to bull would be a good hint at a would-be correction. As yet, it’s not happening by this view.

junk bonds

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