An Ominous Chart for Crude Oil (WTI Spot Price)?

click chart to enlarge

WTI appears to be having problems in terms of both price action (failure to stay above red line and possibly upper blue) on the lower portion of this chart, and relative strength (break above RSI resistance) on the upper portion of this weekly chart.

Please remember that this is not investment advice. You alone are responsible for your investment decisions. See disclaimers below and elsewhere on this website.

Not Investment Advice | Important Disclaimer: 

The content in this article, including the identification and discussion of any specific security (e.g., bond fund), is NOT meant to be and should NOT be construed and/or used as investment advice. This article is for general information and educational purposes only. Please read the Disclaimers  for junkbondrecycling.com in their entirety. The U.S. Securities and Exchange Commission website has guidance on selecting an investment adviser.

Financial Disclosure:
The author/publisher has no position in crude oil at the time this article was written. This position may change depending on future price action.

Base Chart Provided Courtesy of StockCharts.com.  Analysis and Annotation by JunkBond Recycling.com (all rights reserved)

Do These Charts Set A "Bearish" Tone for U.S. Corporate High Yield Bonds?

click chart to enlarge

click chart to enlarge

I stepped out of U.S. corporate high yield bond funds around March 23 when NHINX failed to hold the 150-day ema and failed to break above RSI resistance on the daily chart. Took some nice short-term gains.

Too soon to tell what happens from here.  Failure to get above weekly resistance is also not encouraging to me along with concurrent crude oil weakness.


Please remember that this is not investment advice. You alone are responsible for your investment decisions. See disclaimers below and elsewhere on this website.

Not Investment Advice | Important Disclaimer: 

The content in this article, including the identification and discussion of any specific security (e.g., bond fund), is NOT meant to be and should NOT be construed and/or used as investment advice. This article is for general information and educational purposes only. Please read the Disclaimers  for junkbondrecycling.com in their entirety. The U.S. Securities and Exchange Commission website has guidance on selecting an investment adviser.

Financial Disclosure:
The author/publisher has no position in U.S. corporate high yield bond funds at the time this article was written. This position may change depending on future price action.

Base Chart Provided Courtesy of StockCharts.com.  Analysis and Annotation by JunkBond Recycling.com (all rights reserved)

Are Skyrocketing High Yield Corporate Bonds About To Meet A Major Test? (Daily Chart)

click chart to enlarge

click chart to enlarge

Both of the daily charts above indicate that high yield bond funds are facing sound price resistance and resistance on the RSI portion of the chart.  How investors/traders act here could be important in terms of whether this rally is sustained into the future.

I have been long high yield bond funds for about two weeks now, but I am not fully invested.  Whether or not I add to subtract from my position depends largely on what happens here at these resistance lines, including whether or not NHINX holds the 100-day ema.  

I tend to pay a lot more attention to MUTFs than ETFs because in my view they are less volatile, more indicative of longer-term trends, and less influenced by the stock market.

If corporate high yield bonds are (still) being influenced by the price trends of crude oil, it is worth noting that the spot price of WTI is approaching resistance on both the daily and weekly charts - this may be addressed in a future post but I wanted to at least mention it here.


Please remember that this is not investment advice. You alone are responsible for your investment decisions. See disclaimers below and elsewhere on this website.

Not Investment Advice | Important Disclaimer: 

The content in this article, including the identification and discussion of any specific security (e.g., bond fund), is NOT meant to be and should NOT be construed and/or used as investment advice. This article is for general information and educational purposes only. Please read the Disclaimers  for junkbondrecycling.com in their entirety. The U.S. Securities and Exchange Commission website has guidance on selecting an investment adviser.

Financial Disclosure:
The author/publisher has long positions in several corporate high yield bond funds (MUTFs) at the time this article was written. This position may change depending on future price action.

Base Chart Provided Courtesy of StockCharts.com.  Analysis and Annotation by JunkBond Recycling.com (all rights reserved)