JNK - SPDR High Yield Bond ETF
TLT - Barclays 20+ Year Treasury Bond ETF
Blue = JNK:TLT ratio turned before the DJIA
Pink = DJIA turned before the JNK:TLT ratio
A chart of JNK:TLT was last posted on Thursday, April 14,2011...
Todays prices:
JNK 40.64 +.07
TLT 93.00 +.32
It is very interesting with the Stock Market up (DJIA +32.58) that TLT is stronger than JNK...
This week the DJIA made a recovery high so we used this chart above and compared it to the JNK:TLT ratio chart...Note the divergences in these two charts when there was a change in trend and it appears that we maybe in the middle of another divergence...
So far the S&P500, DJTA & Nasdaq have not joined the DJIA making a recovery high...Also JNK continues to be weaker than TLT...As long as JNK continues to be weaker than TLT, even if the other Stock Market averages make recovery highs, it increases the odds that we are forming a top...
Past performance is not indicative of future results.
Have you ever read Terry Laundry's T Theory - he and several other T-Theorists are calling for a major correction next week.
ReplyDeleteSee http://www.ttheory.com/
BTW - he uses JNK:TLT in some of his charts.
usacoder...
ReplyDeleteYes I have. There are several potential top dates ranging from April to June...
I definitely savoured all bits and pieces of it including all the comments and I have added you to my bookmark list to check out new articles you post.
ReplyDeleteDividend