This Indicator Warns Of Tough Times Ahead

| May 19, 2023

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.

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This post originally appeared at Daily Trade Alert.

Category: Options Trading

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