Dabbling in Debt

Fixed income ETF's continue to show strength in a weak market.

I continue to add to my HYG position as the momo in this ETF has yet to wane.

After closing my LQD for a hefty gain, I've made a smaller reentry with a tight stop.

Emerging market debt continues to make solid gains, but the lack of volume in this issue makes it a terrible trading vehicle.

SHY is losing momentum, but I wouldn't get short too quickly.

I'm nibbling at these Muni's, but with such bleak economic news and weak volume, I'm just as liable to get short if the market moves against me.

Surprisingly enough, the debt market remains resilient in the face of mounting adversity. With so much potential for continued government intervention, the market favors debt to equity. Most of these issues have fundamental problems, but if Uncle Sam is putting in a bottom, then it is a risk I'm willing to take.

Bernanke's 0% Means Buy Junk

LQD has been good to me, so why not move down the quality ladder for higher yield?

I'm kicking myself for being too lazy to post this chart last night. The large volume in high yield corporate debt suggests that risk sentiments are changing.

If you like high yield, here is a ton of rising junk you might be interested in.

Emerging market debt is making a 2nd Bollinger violation. I wish there was more volume in this issue.

Muni's have found stability, and offer tax free yield.

Bonds are offering ridiculous yields whilst rising from panic induced bases. If inflation gets nasty, these will lag the market, but if you want to lock in yield, this collection looks promising. My trade in LQD has come to an end, but I think I'll try an scoop up some of these lower credit quality plays if the tape presents itself.