Comments on: Keep an eye on the junk:quality ratio http://sovereignspeculator.com/2010/02/17/keep-an-eye-o-the-junkquality-ratio/ Thoughts on the markets and the decline of the west Fri, 11 Nov 2011 20:45:34 +0000 http://wordpress.org/?v=2.6 By: newbie http://sovereignspeculator.com/2010/02/17/keep-an-eye-o-the-junkquality-ratio/#comment-8534 newbie Thu, 18 Feb 2010 11:09:46 +0000 http://sovereignspeculator.com/?p=3765#comment-8534 Enjoy your insights. You should start a subscription with gmail alerts for trades. Keep it up. Enjoy your insights. You should start a subscription with gmail alerts for trades. Keep it up.

]]> By: rogerjarema http://sovereignspeculator.com/2010/02/17/keep-an-eye-o-the-junkquality-ratio/#comment-8532 rogerjarema Thu, 18 Feb 2010 03:08:19 +0000 http://sovereignspeculator.com/?p=3765#comment-8532 Hugh Hendry a while ago talked about a trade that has 1.5% to the downside if he's wrong but 75% upside if he's right. I guess this is close to it. At 2.37 IEF/JNK ratio, you cut loss when it reaches 2.2 bottom. It's about 7% loss. To the upside, if they behave anything like 2008, let's say the ratio becomes 4, it's 69% gain. Perhaps he initiated the trade earlier, at 2.25 maybe. I'm not sure but perhaps TLT/JNK may provide a leveraged version of the trade. Hugh Hendry a while ago talked about a trade that has 1.5% to the downside if he’s wrong but 75% upside if he’s right. I guess this is close to it. At 2.37 IEF/JNK ratio, you cut loss when it reaches 2.2 bottom. It’s about 7% loss. To the upside, if they behave anything like 2008, let’s say the ratio becomes 4, it’s 69% gain.

Perhaps he initiated the trade earlier, at 2.25 maybe. I’m not sure but perhaps TLT/JNK may provide a leveraged version of the trade.

]]> By: Mike http://sovereignspeculator.com/2010/02/17/keep-an-eye-o-the-junkquality-ratio/#comment-8527 Mike Wed, 17 Feb 2010 20:53:33 +0000 http://sovereignspeculator.com/?p=3765#comment-8527 Yeah, funny how so many stock/junk bond bears are also USD bears, even after two years of a very tight inverse relationship. You could trade only DX contracts and have the same results as commodities, credit spreads or stocks. Yeah, funny how so many stock/junk bond bears are also USD bears, even after two years of a very tight inverse relationship. You could trade only DX contracts and have the same results as commodities, credit spreads or stocks.

]]> By: rogerjarema http://sovereignspeculator.com/2010/02/17/keep-an-eye-o-the-junkquality-ratio/#comment-8526 rogerjarema Wed, 17 Feb 2010 20:45:50 +0000 http://sovereignspeculator.com/?p=3765#comment-8526 Gee, that IEF:JNK chart looks almost identical to USD. And it's very early in the advance as well. Gee, that IEF:JNK chart looks almost identical to USD. And it’s very early in the advance as well.

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