Chinese chip stocks jump as Beijing reportedly warns against Nvidia’s H20
To be long and strong stocks, one likes to have confirming signals. The above chart looks at four different bond funds—the PIMCO High Income Fund (NYSE:PHK), PIMCO High Yield Fund (PHDAX), SPDR Barclays (LON:BARC) High Yield Bond (NYSE:JNK) and PowerShares Senior Loan Portfolio (NYSE:BKLN)—each of which one would prefer to see heading higher if you are long and strong stocks.
As you can see, most of these bond funds started heading south in 2014. About the time they did that, the NYSE struggled to make some upward progress over the past two years.
The majority of the bond funds in the top chart have rallied since February lows were hit. Now each of them has retraced around 38% of the declines over the past couple of years. The “Risk-On” trade for stocks would like to see these bonds break above falling resistance and the 38% retracement levels.
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