Friday, October 10, 2014

Corporate High Yield Bond Funds - Declines to Continue?

Over the last three days, price action has again been relatively dismal for the corporate high yield bond funds we track and analyze

As indicated in our last post on September 25, 2014, the funds were at that time in an oversold conditions per the RSI and appeared to be at or near support (S1), suggesting a rally could possibly occur. Although a short-term rally did occur off this support line, it quickly ran into overhead resistance (R1) and reversed course. And now it appears that after today's decline this support line (S1) has been broken and/or is at least being seriously tested for the majority of these funds.

Updated, but simplified, daily graphs for some of these funds, including NHINX, BHYSX, and VWEHX, and a new graph for LHYAX, with 10/10/2014 closing prices are below.  VWEHX is still at and/or above support.

Click Chart to Enlarge

Click Chart to Enlarge

Click Chart to Enlarge

Click Chart to Enlarge

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 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 corporate high yield bond funds at the time this article was written.

Base Chart Provided Courtesy of  Analysis and Annotation by (All Rights Reserved)

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