Credit Spread VS PM sector MUT to TLT vs SGR
The ratio of Junk bond etf MUT and TLT represents credit spread. Weekly chart of this ratio is warning of risk on once it break out the inv HnS. That means GM will continue to rise.
At the same time there is correlation with SGR which also represents credit condition in the market. When SGR rises risk is on and miner perform well and exceeds general market performance.
Expect SGR to turn here with the MUT/TLT.
Weekly MUT to TLT:
Chalk this up as one for the bulls. Opinion seems split down the middle right now.