Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough. 

How about High Yield and Junk Bonds? Well, the update I’ve been giving Institutional Clients who are in those markets has been that both HYG (High Yield) and Junk (JNK) broke my TRADE and TREND Signal levels of support.

That is not good.

And it’s going to be #NotGood faster if/when we get a breakout in my High Yield OAS Spread Signal > 330 basis points over Treasuries. PE Powell, write that number down. And thank me later for my candor.

When it comes to protecting your boys in the Big Houses, you’re the one who knocks on going dovish. Don’t screw it up like you did when you were a rookie on the job during #Quad4 in Q4 of 2018.

CHART OF THE DAY: High Yield & Junk Bonds Knocking - whs1