This “Bad Sign” Is Still Hanging

[Jeff Clark's Market Minute]( This “Bad Sign” Is Still Hanging By Jeff Clark, editor, Market Minute The setup in the junk bond market has gotten worse. And, that’s a bad omen from the broad stock market. [Last week]( we looked at the setup in the iShares High Yield Corporate Bond ETF (HYG). It had just broken below its 50-day [moving average]( (MA – blue line). That’s a [bearish]( development. And, unless HYG could recover right away, it would be a bad sign for the stock market. Recommended Link [LAST CHANCE UNTIL 2021]( [image]( Jeff Brown’s ground-breaking Early Stage Trader… the research service with an industry-leading AVERAGE 259% gain on closed positions… Is closing down until 2021. [To review the special offer… the one-time $2,500 discount… and the TWO special guarantees… Click here]( -- Here we are, just one week later, and… well… let’s just say the bad sign is still hanging. Take a look at this updated chart of HYG… This chart still looks bearish. HYG is trading below where it was last week. And, the shorter-term 9-day (red line) and 20-day (green line) [exponential moving averages]( (EMA) have crossed below the 50-day MA line. This sort of “bearish cross” often signals the start of an intermediate-term decline phase. It looks like junk bonds are headed lower. And, since the action in junk bonds tends to lead the action in the stock market – by anywhere from two days to two weeks – our stock market is likely headed lower too. It doesn’t have to turn out that way, of course. Nothing is ever 100% certain in the market – especially not this year where we’ve seen so many things that have never happened before. But, when you consider all of the other caution signs – like the persistently low [put/call ratio]( the premium price of the [Volatility Index]( (VIX) call options, and the seasonal weakness that typically appears this time of year – it makes sense to be a little bit cautious, or maybe even a little bit bearish here. Best regards and good trading, Jeff Clark P.S Like most people, I enjoy the finer things in life, but don’t necessarily enjoy working endlessly for them. That’s why I use this little-known “trick” to make money on the fly when paying for everyday things. I recently tested out a method in my hometown to show my readers that if it’s possible for me to [make money from just using my phone and this trading strategy]( then it’s possible for them as well. To find out how I was able to instantly make money without using any cash or credit cards, and how to even do it yourself… [just click here to learn more](. Reader Mailbag Have this year’s market caution signs impacted your trading strategy? If so, have you made more gains from being bearish or bullish during these volatile times? Let us know your thoughts – and any questions you may have – at feedback@jeffclarktrader.com. In Case You Missed It… [[On Camera] Retired Millionaire Leaves South America to Make Shocking Gold Prediction]( Legendary investor, Doug Casey, just made a MASSIVE gold prediction... It’s so outrageous, we nearly refused to publish it. But then Doug agreed to fly 5,700 miles – from his ranch in Argentina to Aspen, Colorado – to explain everything in this exclusive interview. And what he told us left us all shocked... Our entire office is still talking about it. Doug calls it the ‘most bullish sign he’s seen in 45 years’… And shares his #1 Gold Secret – LIVE on Camera. If you’ve been waiting to profit from this massive gold boom… Now is your chance. [Watch the Interview Now (Doug’s #1 Gold Secret Revealed).]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [image]( [Trading Basics: Two Building Blocks Every Trader MUST Know]( [image]( [The Ultimate Guide to Taking Back Your Privacy]( [image]( [How You Can Start Profiting From Maganomics Today]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2020 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](