HYG Update / P/L

I've had some decent positions in HYG before, this just wasn't one of them.

In any case, you saw how High Yield Credit cracked and broke down yesterday, because of the thin liquidity, that's usually the first credit to panic and head lower which it did on significant volume yesterday. HYG is typically the first choice because of its liquidity, it's no coincidence that arbitrage and the ES CONTEXT model all use HYG as part of their modeling.

 High Yield vs the SPX (green) as of yesterday's close.

A larger view of HY credit confirming the SPX and then breaking with it late last week and yesterday.

Typically HYG will go next before the SPX as it becomes part of a downward arbitrage cycle, this is why I said HYG would be first to go among the call positions I want to clean up, most often HYG is already negatively divergence with the market before the market breaks, or in other words, "Credit tends to lead and equities follow"

This is the 1 min HYG intraday chart, once I saw this I didn't have high hopes for HYG gaining much more intraday.

This is the same chart scaled out, it was moving in the right direction, but had already been lagging and not showing good confirmation, this was just one small piece of the puzzle in last night's EOD post.

 The 2 min also not confirming

Nor the 3 min which I market the different relative areas of price with a red box, each is higher so there's no confirmation unless 3C was making similar higher highs.

As for the P/L...

-70.45% and just above the 2% risk rule.