Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

I'm Shorting A Couple Of Bond Funds

Published 07/10/2017, 12:55 AM
Updated 07/09/2023, 06:31 AM

Not feeling terribly inspired right now, so I’ll just share with you a couple of positions I’ve got focused on bond funds. The first of these is the high-yield bond fund iShares iBoxx $ High Yield Corporate Bond (NYSE:HYG), which has broken beneath this massive pattern below and has been in the throes of rolling over for some time now……..

HYG Chart

Looking closely, you can see the failure of the blue trendline and the going-nowhere-fast action of the past few weeks. A failure of the green horizontal line would really get things kicking.

HYG Close-Up

I’ve got an especially large short position in iShares JPMorgan (NYSE:JPM) USD Emerging Markets Bond (NYSE:EMB) the emerging markets bond fund, below. The channel goes back for years, and even though we’ve already dropped some, we’re quite high (relatively speaking) within the confines of this channel.

EMB Chart

Once more, looking closer, the drop on this one has been steadier than on HYG (note the red arrow—my kind of market!) and I’m comfortable suffering through any bounce as long as it doesn’t penetrate above the magenta horizontal below (where the gap is).

EMB Up-Close

I am presently positioned with 48 shorts, concentrated in energy, retail, and the above two funds, and I’m fairly aggressively using margin.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.