{"id":16606,"date":"2020-09-30T07:30:16","date_gmt":"2020-09-30T11:30:16","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=16606"},"modified":"2020-09-30T07:30:16","modified_gmt":"2020-09-30T11:30:16","slug":"this-bad-sign-is-still-hanging","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/this-bad-sign-is-still-hanging\/","title":{"rendered":"This \u201cBad Sign\u201d Is Still Hanging"},"content":{"rendered":"

The setup in the junk bond market has gotten worse. And, that’s a bad omen from the broad stock market.<\/p>\n

Last week<\/a>, we looked at the setup in the iShares High Yield Corporate Bond ETF (HYG). It had just broken below its 50-day moving average<\/a> (MA – blue line). That’s a bearish<\/a> development.<\/p>\n

And, unless HYG could recover right away, it would be a bad sign for the stock market.<\/p>\n

Here we are, just one week later, and… well… let’s just say the bad sign is still hanging.<\/p>\n

Take a look at this updated chart of HYG…<\/p>\n

\"\"<\/p>\n

This chart still looks bearish.<\/p>\n

HYG is trading below where it was last week. And, the shorter-term 9-day (red line) and 20-day (green line) exponential moving averages<\/a> (EMA) have crossed below the 50-day MA line. This sort of “bearish cross” often signals the start of an intermediate-term decline phase.<\/p>\n

It looks like junk bonds are headed lower. And, since the action in junk bonds tends to lead the action in the stock market – by anywhere from two days to two weeks – our stock market is likely headed lower too.<\/p>\n

It doesn’t have to turn out that way, of course. Nothing is ever 100% certain in the market – especially not this year where we’ve seen so many things that have never happened before.<\/p>\n

But, when you consider all of the other caution signs – like the persistently low put\/call ratio<\/a>, the premium price of the Volatility Index<\/a> (VIX) call options, and the seasonal weakness that typically appears this time of year –
\nit makes sense to be a little bit cautious, or maybe even a little bit bearish here.<\/p>\nBest regards and good trading,<\/p>\n

<\/p>\n

Jeff Clark<\/p>\n

P.S<\/strong> Like most people, I enjoy the finer things in life, but don’t necessarily enjoy working endlessly for them. That’s why I use this little-known “trick” to make money on the fly when paying for everyday things.<\/p>\n

I recently tested out a method in my hometown to show my readers that if it’s possible for me to make money from just using my phone and this trading strategy<\/a>, then it’s possible for them as well.<\/p>\n

To find out how I was able to instantly make money without using any cash or credit cards, and how to even do it yourself… just click here to learn more<\/a>.<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

Have this year’s market caution signs impacted your trading strategy? If so, have you made more gains from being bearish or bullish during these volatile times?<\/p>\n

Let us know your thoughts – and any questions you may have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The setup in the junk bond market has gotten worse…<\/p>\n","protected":false},"author":43,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-16606","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/16606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=16606"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/16606\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=16606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=16606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=16606"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=16606"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=16606"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=16606"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=16606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}