Big Thrust In Up Volume As Junk Bond Metrics Diverge
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Jason Goepfert
Published: 2018-05-31 at 13:07:18 CST
This is an abridged version of our Daily Report.
Kind of a thrust
We still haven’t had a “breadth thrust” with more than 90% of NYSE volume flowing into advancing stocks. But Wednesday’s session had the best ratio since November 2016, nearly 400 sessions ago.
A big Up Volume figure for the first time in a while, especially during an uptrend, led to good returns.
Are junk bond funds hiding a nasty surprise?
Popular high-yield (junk) bond funds like HYG and JNK are holding well above their spring lows. At the same time, indices that track option-adjusted high-yield spread are moving to their most extreme in 6 months. That’s happened before, and it wasn’t an indication that the funds were hiding a nasty surprise.
A healthy flow
The popular health-care ETF, XLV, enjoyed an inflow of more than $350 million on Tuesday. That ranks among its largest ever.
Submerging markets
Unlike health care, traders have had no interest in emerging markets. The EEM fund has seen a steady outflow, capped by more than $700 on Tuesday, its largest in more than a year.
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The post titled Big Thrust In Up Volume As Junk Bond Metrics Diverge was originally published as on SentimenTrader.com on 2018-05-31.
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