On days with the potential for major trend changes, I like to look around to see what might be moving that I did not expect. Today, I came across this ETF. It is the Bank of America - Emerging Market Corporate Bond ETF. This is a 52 Week High Break out.
Now the volume is tiny. But what caught my eye was the size of the move on both Friday and Monday. These bond traders can be some of the smartest. I would not have been thinking about emerging market corporate bonds this morning without this clue from the ETF SCTR Top Up Today.
The other information which was not as surprising was all the commodities shooting higher. This list changes in real time, so looking through out the day for ideas can be very helpful. As well, it looks like the 30 Year bond yield is completing a Head/shoulders topping pattern. That is important to watch for a broader market signal.
Greg Schnell, CMT.