The Little Things

You neve know where you're going to find the little things. As a famous trader once said, "To make money you have to see what the crowd missed".

My sentiment report is the bears are out of control over on twitter, our member who keeps tabs floated a trial balloon after I mentioned to him when you get cocky and think you've got the market in your back pocket, that's when you are about to take a fall. So he went over there and posted "Would anyone go long?" and was "ridiculed". He knows how bearish the market is, much, much worse than what we have seen recently, I need to do a big picture post, but he also knows how Wall Street plays the game as he has been with me as long as I've been doing this.

Any way, Credit leads, equities follow. High Yield Credit is the choice of Credit traders, they are much smarter and trade much bigger markets than equity traders, how many retail traders do you know who trade credit? Probably none because it's a huge market, much bigger than the S&P Futures.

Like I said, for a risk on move, High Yield is the credit of choice and it's pretty cheap right now. I wouldn't rec'd trading this ETF, volume is too low, but it tells us what's going on with those who are really in the know, thus the phrase, "Credit leads, stocks follow" which has served us well in many a reversal.

Here HY Credit intraday is coming undone from the SPX and trending higher, interesting.