Market participants are digesting poor ADP employment data, and whichever way you look at it, losing over 20 million jobs over a month is plain horrible.

High yield corporate debt (HYG ETF) has given up today's bullish opening gap, and trades just below $79.10 - while that's a decline compared to yesterday's closing prices, it's far from breaking below the local lows. And considering the employment data, it's holding up relatively well.

The same can't be said about investment grade corporate bonds (LQD ETF) though, because this one has already broken below its recent lows on an intraday basis.

We'll keep monitoring the action in the credit markets - most notably, whether HYG joins LQD in breaking lower, giving the much needed green light for stocks to decline as well.

Our open short position remains justified.

Thank you.

Monica Kingsley
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care