I think it is safe to say that the ratio between the HYG (junk) and LQD (investment grade) bond funds vs. the USD fund UUP is important. With the exception of one anomaly, the ratio has inversely mirrored the UUP very reliably.
So it is probably very important to the summer rally that HYG-LQD hold the cluster of moving averages it is currently dealing with. This is all about sentiment resetting isn't it? Over here http://www.biiwii.com/analysis.htm, a note from the AAII on sentiment (top item) says that dumb money is starting to get a little more confident.
While I think the asset rally is more likely than not to continue pending some August chop, it may not be wise to count out the anti-market (Uncle Buck) in any sort of lasting way. NFTRH has set a parameter for USD that could end the global rally.
http://www.biiwii.blogspot.com
http://www.biiwii.com/analysis.htm
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So it is probably very important to the summer rally that HYG-LQD hold the cluster of moving averages it is currently dealing with. This is all about sentiment resetting isn't it? Over here http://www.biiwii.com/analysis.htm, a note from the AAII on sentiment (top item) says that dumb money is starting to get a little more confident.
While I think the asset rally is more likely than not to continue pending some August chop, it may not be wise to count out the anti-market (Uncle Buck) in any sort of lasting way. NFTRH has set a parameter for USD that could end the global rally.
http://www.biiwii.blogspot.com
http://www.biiwii.com/analysis.htm
Subscribe to NFTRH or
Subscribe to the free eLetter
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