This Indicator Warns Of Tough Times Ahead
High yield bonds just fired a warning shot.
The action in the junk bond market tells us a lot about the average investor’s willingness to take risk. That, in turn, tells us about the potential for a rise or fall in the stock market.
When high yield bonds are rallying, it’s a “risk-on” environment. That tends to be bullish for stock prices.
When high yield bonds are falling, investors are in a “risk-off” mode. That’s bearish.
This post originally appeared at Daily Trade Alert.
Category: Options Trading
