1. High Yield Corporate Bond ETF HYG, $84.41.
For risky or less conservative traders, high-yield corporate bonds, or junk bonds, followed by the HYG ETF, are a good option for their portfolio, since this fund take a universe of several BB to Ba rating companies that relieves us of the job of looking for specific corporate bonds. The most conservative traders can opt for the LQD ETF that follows the investment-grade bonds.
As seen in its daily chart, HYG did not have a good 2018, but its rebound, due to the 'new' dovish FED at the end of the year, has been powerful, almost 6%, and is about to overcome the Ichimoku cloud, in bull territory. Its next and crucial resistance is the SMA200 average at $84.96. These weeks, only if the risk of recession begins to decrease, is the best moment to invest in this ETF for the short-term, before the bond yields decreases. Even taking into account that, according to Moody's, the annual defaults rate for speculative-grade debt is at very low historical levels, around 2%, when the average is close to 5%.
2. Emerging Markets Index EEM, $42.20
Consequence of this optimistic vision, technically, the EEM index has been recovering strongly since January, already surpassing its SMA200 average and 23.6% of its Fibonacci, approaching its SMA50 and 100 as next resistance. The conditions seem given to be long in this ETF for all this 2019.
Hint: follow US economic events this week, as earnings "superweek", FOMC Meeting Announcement and GDP on Wednesday and Employment data on Friday. There will give important cues for the future behavior of that country. Do it before any trade decision in this instruments.
When all the investors were worried about the recent vote of the Brexit (catastrophic defeat for Theresa May) and its repercussion on the pound, it reacted surprisingly well, considering the complicated political situation in that country. It seems that finally, the historic decision was a balm for the British stock market and the pound, because clarified the way, and today it's almost certain that the harmful option of Hard Brexit will not be given, but a consensus agreement between all the parties. Be alert as the debate continues in the English Parliament this week, and their decisions will move markets.
3. Currency Pound Sterling ETF FXB, $128.14
When all the investors were worried about the recent vote of the Brexit (catastrophic defeat for Theresa May) and its repercussion on the pound, it reacted surprisingly well, considering the complicated political situation in that country. It seems that finally, the historic decision was a balm for the British stock market and the pound, because clarified the way, and today it's almost certain that the harmful option of Hard Brexit will not be given, but a consensus agreement between all the parties. Be alert as the debate continues in the English Parliament this week, and their decisions will move markets.
In its daily chart, FXB, the ETF that follows the pound, is soaring, surpassing on Friday its SMA200 average and is about to leave its mid-year ranging price with its resistance at $128. Remember that the pound touched a minimum of 30 years in mid-2016 (with the news of Brexit) and has the field to recover that gap. Forex traders must be trading the pound against all its pairs. I, who do not use forex, plan to enter for a short-term in FXB on news of a deal this week in the UK.
Good Trading!
@BravoTrader
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