Nothing New Today

The market is kind of settling in to the bounce parameters. As we said yesterday. The high yield market is where the FED and Treasury are focused, mainly because they set up a way to infuse money there to try and save things. High yield bonds are where the problems associated with excess leverage and FED funny money play out.

With that said, the easiest way to follow this scenario is to watch the high yield ETF, HYG. It is not acting well here early this morning. The important level is 77.30. A close below that level would panic Mnuchin and Powell and by extension Trump.

So maybe watch the Presidents so called COVID Task Force actions over the next few days to gauge his temperament. At the moment his craziest idea is to inject patients with Lysol like products.