HYG & Sentiment

HYG looks like it may be near the head fake area of the rounding bottom (intraday), the market will need the levers like HYG up as there will be very little institutional support, in fact quite the opposite from what we are seeing.

This afternoon run that I expect should be good because as Sam reports back, the Twitter feed has gone bearish, a run in to the afternoon will persuade them not to question the "Buy the Dip" mentality, so this sets up well for us.

The thing is, at this point in the game, the volatility is more psychological warfare as the market is moved not by economics 101's supply and demand, but rather fear and greed, so look for moves that touch emotions, if you feel them yourselves, you know you are on to something and likely you will feel them, if not today at some point, that is how Wall Street wiggles the market to get its choke hold set in place.

I don't see any obvious HYG stop levels and be careful as the CBOE quotes show no volume on HYG calls, surprising to me. You might find a head fake target in one of the moving averages on one of the timeframes (50-200- etc). Most of all, look for large volume indicating stops were hit or shorts piled in.