The PIMCO 0-5 Year High Yield Corp Bd ETF Effective Volume study shows large players are piling in to the ETF in big numbers.
You might be thinking that with the Federal Reserve raising rates, bonds and bond ETFs like HYS are in big trouble. I disagree. There will always be a need for bonds in a portfolio. Anybody who is cash flow sensitive or has a need for principal at a particular date in terms of fulfilling a certain funding or a certain drawdown, fixed income is a far more predictable and less volatile asset class compared to anything in the equity markets. It offers peace of mind for those who really want some predictability in terms of outcomes and reaching their goals.
PIMCO 0-5 Year High Yield Corp Bd ETF Chart
HYS presents a decent setup opportunity with rising large players volume. There is a big accumulation going on in high yield bonds rights now. The Twiggs Money Flow supports the thesis that large players are accumulating HYS.
Prices have been consolidating lately. There is a resistance zone just above the current price starting at $101.31. Right above this resistance zone may be a good entry point. There is a support zone below the current price at $101.24, a stop order could be placed below this zone.
The stock screener I used to find HYS and its exploding large players volume is the screener I created on Chartmill here called GST Positive Divergence. I also did a lesson on the stock screener and finding positive divergences here.
Lance Jepsen
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