• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock McClellan Oscillator for Investment Grade Bonds
Stock

McClellan Oscillator for Investment Grade Bonds

by November 10, 2023
by November 10, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

T-Bond prices fell on Nov. 9, 2023, on news of an auction of $24 billion in new 30-year T-Bonds that did not go very well. The setup for this drop was already there, based on the recent run up in bond prices, which has also affected the corporate bond market.

FINRA publishes data for each trading day on how many corporate bonds went up or down (Advances and Declines). They separate out the data into Investment Grade, High Yield, and Convertible Securities. This week’s chart above shows a Ratio-Adjusted McClellan Oscillator (RAMO) for the A-D data on the Investment Grade category. These bonds tend to behave a lot like T-Bond prices, whereas the high-yield (AKA junk) bonds tend to move more like the stock market.

The recent rally in T-Bond prices has pulled investment-grade bonds up in sympathy, resulting in a lot of days with many more Advances than Declines. And that condition has brought about an overbought reading for this RAMO.

When the NYSE’s McClellan A-D Oscillator gets up to an overbought level, that can sometimes be a signal of strong initiation of a new uptrend, and a promise of more buying to come. But it does not seem to work that way for this McClellan Oscillator for corporate bonds. Here, the message of a high reading is more uniformly one of an overbought condition that needs to be addressed by a pause or a pullback.

Here is where I traditionally remind readers that overbought is a “condition”, and not a “signal”. An overbought or oversold condition does not have to matter right away just because we notice it. But they do tend to matter eventually. The implication now is that corporate bonds and T-Bonds should pull back in price.

You Might Also Like
  • Improving Your Trading Performance Through Discretion
  • Indexes Level Off
  • MEM TV: Recession Fears Drive Sector Rotation
  • The Chart to Help Navigate a Summer Market Top
Share
0
FacebookTwitterPinterestWhatsapp

previous post
The Halftime Show: Don’t Believe Everything the Analysts Say, It’s Dangerous!
next post
United Airlines tweaks frequent flyer program to reward credit card spending

You may also like

Technical and Fundamental Analysis on US Oil Fund

May 15, 2023

Bad News for Buyers Weighing Hefty Mortgage Rates

October 31, 2023

Check Out This Economic Indicator

April 21, 2023

Who Let the DOG Out?

August 4, 2024

NVDA Stock Split Launches S&P 500 Higher

June 10, 2024

“Bear Shift” Changes Character of the Market

April 26, 2023

Week Ahead: NIFTY Drags Resistance Levels Lower; Adopt A Defensive...

May 6, 2023

Growth Stocks Drop Again — and That’s Just the Beginning?!?

January 5, 2024

Visualizing the Holdings for a Dual Momentum Rotation Strategy

June 3, 2024

Indexes Masked by Mega Tech

May 13, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Week Ahead: As NIFTY Breaks Out, Change Of Leadership Likely To Keep The Index Moving

      June 28, 2025
    • 3 Stock Setups for the Second Half of 2025

      June 28, 2025
    • Fibonacci Retracements: The Key to Identifying True Breakouts

      June 27, 2025
    • All-Time Highs and An Upcoming Rate Cut: We’re Just Getting Started on This Move Higher

      June 27, 2025
    • How to Improve your Trading Odds and Increase Opportunities

      June 27, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,615 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,896 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,589 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,552 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,430 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,151)
    • Investing (538)
    • Stock (2,640)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Week Ahead: As NIFTY Breaks Out, Change Of Leadership Likely...

      June 28, 2025
    • 3 Stock Setups for the Second Half of 2025

      June 28, 2025
    • Fibonacci Retracements: The Key to Identifying True Breakouts

      June 27, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,151)
    • Investing (538)
    • Stock (2,640)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    AAPL and TSLA Stocks Are COLLAPSING!

    March 7, 2024

    The 23-Month Moving Average “Tell” for...

    March 30, 2023

    This Is The Only Segment Of...

    September 18, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here