Ow! High Yields feel the pain

There is lots of reason to believe there is support at 1250.  But downside risks continue to add up.  Commodities continue to break down, but check out the ugliness in high yielding junk bonds and “preferred” shares today!  Brutal selloffs in HYG, JNK and PFF!


This doesn’t bode well.

The headlines and sentiment seems so bearish that it feels like we should bounce soon… but breakdowns in high yield and commodities don’t bode well.  And if you remember 2008, it felt like “we should bounce” all through the fall as we fell off the cliff.




  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: