High yield corporate bonds (HYG ETF) were probing the daily lows, and investment grade corporate bonds (LQD ETF) weren't exactly outperforming, but the HYG ETF recovered, dragging stocks along.

Despite the fragile nature of the recovery and the HYG ETF trading merely unchanged now, that intraday move took away a lot of the rationale for the short position.

On the other hand, stocks have been trading in a tight range and appear running into short-term headwinds, and the HYG ETF doesn't appear to be willing to move higher today and support the upswing.

In other words, the potential for the overnight move lower is still there, but let's tighten the trade parameters for risk-reward reasons.

Please see Trading position section for details.

Trading position (short-term; our opinion): short position (100% position size) with stop-loss at 3109 and the binding take-profit at 3071.

Thank you.

Monica Kingsley
Stock Trading StrategistSunshine Profits: Analysis. Care. Profits.