HYG: Junk in a Funk

According to Yahoo!Finance, the high yield junk bond fund iShares iBoxx $ High Yield Corp Bond ETF (HYG) “seeks to track the investment results of the Markit iBoxx® USD Liquid High Yield Index (the ‘underlying index’).”

Since 2007, HYG has had the following performance:

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We have provided upside targets based on the intermediate peak of April 8, 2013 at $96.29 and the low of February 11, 2016 at $75.59. 

It can be safely said that HYG has a long-term trend with a downside bias.  All HYG needs to do is exceed the $92.87 to confirm a “stable” and “improving” market for high yield instruments.  Until that time, speculators in high yield products should pay close attention to the prospect of a potential double top and resistance to the long-term trend in the market that has been in place since 2007.

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