HYG is the iShares High Yield Corporate Bond Fund, "junk bonds," and it is about to break a trend line going back to the Covid Crash Lows of 2020. Not that far below that break-down is another trend line rising up from the Great Financial Crash of 2008. If that trend line fails to stop the carnage, a global trap door to hell opens up swallowing two+ decades of global financial growth into a bottomless pit of hellfire and brimstone. The good news: There are puts for that.
HYG iShares High Yield Corporate Bond ETF PnF
TLT iShares 20+ Year Treasury Bond ETF PnF
XLF SPDR Select Sector Fund - Financial PnF
The lost art of Point & Figure charting is above applied to Hi-Yield Corporate Bonds (HYG), 20-year Government Bonds (TLT) and Financial Sector SPDR (XLF). PnF minimizes time, focusing almost entirely on price momentum. The message remains the same, on the brink. The run-up from the Covid lows will be first to fall, then the Great Financial Crash gets tested, with the Fed idrwan into panic-ease mode as those levels draw near. This year or next?
Maybe the better question will be what becomes of equities in the aftermath of a credit market debacle? The even better news: There are puts for that, too.