The S&P 500 downswing is progressing nicely, and the bearish momentum has continued since the open. Neither the HYG ETF, nor the LQD ETF can get its act together, Treasuries are higher, and our open short profits are rising. Given the momentum in stocks and credit markets' deteriorating leading ratios (HYG:SHY and LQD:IEI), it appears premature to adjust trade position's parameters in any way.

The Fed's narrative of long-term corona impact on the economy coupled with the second wave fears, appear to be taken seriously by the stock market. I think this is just for starters as the V-shaped recovery story fades away in light of the (perhaps even overly optimistic) GDP growth assessment.

Thank you.

Monica Kingsley
Stock Trading Strategist
Sunshine Profits: Analysis. Care. Profits.