One of the biggest beneficiaries of the Powell Surrender has been the high-yield bond fund, symbol HYG, shown here.
Liquidity moves markets!Follow the money. Find the profits!
Notice how extended its moving averages are, and how stretched the price is above those averages. This is clearly a financial instrument which has gotten ahead of itself. Looking closer, using the same averages, you can observe how we’d double-topped at 85.88. A short at these levels seems like a very appealing low-risk/high-reward kind of trade, since this is a relatively slow-moving instrument with a tight stop-loss.
The %R and CCI indicators also suggest that HYG is in an overbought state.
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