This is not a trade I personally am interested in, but HYG is a catalyst and it's a leader so it needs to move up for the market to have a healthy bounce, there's not a lot of beta in HYG, I think it's most appropriate for larger portfolios and that's exactly who uses it the most, smart money, in most of our cases I'd use options (calls) with some leverage to make up for the lower beta, but it looks like a high probability position and it has been doing what I fist saw in the initial update today. If you do look at options, I'd make sure there's enough liquidity in the strike and expiration you chose.
This 60 min chart isn't beautiful, but for where the market is now, it's a clean enough trend that has been part of the analysis suggesting a bounce with a positive in HYG on 60 min, again, not a great one, but about as good as you can expect for any asset considering where the market is.
This also of course, means that probabilities for HYG are "Higher"
The 1 min chart that gave me a sigh of relief earlier has continued to build positive and has migrated to longer timeframes, price also has a nice "U" shape with 3C stronger where it should be intraday.
The 2 min is positive as well as the 3 min.
At this point I'd prefer to try to get HYG on a head fake shakeout below intraday lows and maybe I'd set an alert looking for price to do that, it would make the position more appealing, but if I was interested in HYG either way, I'd have no problem entering a spec. long here with the understanding there's a good probability that the intraday lows see a head fake / stop run before HYG moves north.
The 5 min chart is in line which is better than negative, if it goes positive as well, HYG looks even better as a long.
This also has market implications as this is the asset of choice for smart money because of it's size/liquidity, as we sat often, "Credit leads, stocks follow".
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