Have to wait until tomorrow for the final number, but the high-yield spread "market exit signal" may have triggered. I'm basing this on the drop in HYG today. I have the horizontal at 5.50 percent. The signal triggered in:
Sept 1998 - major tech correction
March 2000 - stock market top
November 2007 - stock market top
July 2011 - major correction
Dec 2014 (false)
Aug 2015 (yuan deval, major correction)
March 6, 2020 pandemic panic
Sept 2020 - ???
Hope you do a follow-up to this article and let us know!
ReplyDeleteAwhile ago I loaded up on energy stocks as a contrarian play; I am down some since purchasing but I like the positions, even duds like Exxon! Too much doom and gloom out there in my opinion. As for energy, it seems as if almost every geo=political struggle involves oil, so I figure it must be valuable.
Thanks for the update and chart reference.
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