Tuesday, August 20, 2019

US #CorporateBonds Review $LQD $HYG

US HG Bonds Review
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

US High Grade Bond's overall trend, revealed by trends of price, leverage, and time, are defined in the The Matrix for subscribers.

Subscriber Comments

Line 11 Matrix, High Grade Corporate Bonds

Matrix output shows subscribers that high grade corporate bonds (LQD) has been Trip UP (triple upside alignment) for 67 days. This has been a good trade. The text is read because the cycle is B-Late. The key word for those reading output in google sheets is Late. Traders do not hold late setups. If you haven't sold, it's time. Why is it time? Alignment in the daily trend displays the following statistics BuS = 3.3, BuT = 67, and BuST = 3.54. These numbers show us that the daily alignment is extremely extended. BuS, the profit of the impulse 8%, is over three standard deviations past the normal cycle. BuST, the duration of the impulse, is over three standard deviations past the normal cycle. Basic statistics says readings past 2 standard deviations are rare. Readings past 3 are really rare. I rarely see daily Z scores past 4 in the daily column in any market of the tracked by the Matrix. It's tell to take profits.

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