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Junk Bond and Muni ETF's on the verge of a crash?


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#1 PrintFaster

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Posted 08 October 2018 - 06:57 PM

 

 

Muni's getting slammed also

 



#2 OEXCHAOS

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Posted 09 October 2018 - 07:00 AM

I cannot think of a worse value, more high risk investment than muni's. Even now. I wouldn't touch them. 

Principal is at risk.


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#3 fib_1618

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Posted 09 October 2018 - 07:13 AM

Here are some longer term breadth charts that may be of "interest" for a better perspective.

 

First is the Junk Bond A/D line with HYG

 

Second is Municipal Bond CEF A/D line with MUB

 

Third is Investment Grade Bond A/D line with CORP.

 

As you can see, we've had quite a bit of bearish divergence in the debt asset class for quite awhile now with the muni's currently at critical support.

 

Fib

 

breadthjunkit100518.png

 

breadthmuniit100518.png

 

breadtgigit100518.png


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#4 OEXCHAOS

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Posted 09 October 2018 - 11:25 AM

I don't like the looks of that.


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#5 zoropb

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Posted 09 October 2018 - 04:16 PM

Nasty!


I run a traders Blog with high probability targeting on ES , closed to any new members.


#6 SemiBizz

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Posted 09 October 2018 - 11:11 PM

I don't like the looks of that.

 

Yeah, but you're not worried....commercial paper doing fine eh?


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#7 OEXCHAOS

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Posted 10 October 2018 - 09:43 AM

I'll call a low here by Friday. Possibly tested again, but a low nonetheless. The financial system is fine. Munis suck.


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#8 pdx5

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Posted 10 October 2018 - 04:08 PM

Fed has declared 4 more interest rate hikes coming before end of 2019.

Based on that all interest sensitive stuff looks premature to me. Better

time to go long would be next fall. Just my opinion. In the meanwhile,

even the MM funds don't look so horrible, yield wise. 


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#9 Dex

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Posted 10 October 2018 - 04:38 PM

 

 

Muni's getting slammed also

 

 

Muni's are not the same as the others.  For them to crash you have to believe that government will not be collecting taxes to pay the interest.  With the economy doing so well you should look for a buy on the munis.


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