Saturday, April 4, 2026 
The Credit Markets and the TED Spread
The credit markets look terribly weak. Especially high yield debt. Below is a chart of the SPDR Barclay High Yield Bond ETF (JNK).
SPDR Barclays Capital High Yield B (ETF) (NYSE)
The credit markets saw a rally the latter part of 2008. They have since faltered. Look for the credit markets to take out their lows from November. Then you’ll see the TED Spread zoom higher than it did last year. Guess what happens then? The $VIX goes even higher than it did in October of 2008.
Weekly chart of the VIX
That’s the thing about Volatility. You have to be positioned before the tipping point hits. If you are positioned before it hits, it is then that you can hit it big.
Peace
The Big Time
I’m in
Comment by Richard Woon — February 26, 2009 @ 4:38 pm
[...] serve to enhance my portfolio of put positions that I will sell when the $VIX spikes higher than it did last year. Other than the REITS, my favorite shorts here are Google (GOOG), Research in Motion (RIMM) and [...]
Pingback by Wall Street Research In Motion | Trade the Picture — March 10, 2009 @ 11:51 am
[...] be the catalyst for the next big move. Move which way? Move down in equities, but more importantly, move up in Volatility. Were you short the crash of 2008? Are you short for the crash of [...]
Pingback by AIG | Trade the Picture — March 20, 2009 @ 2:23 pm
Can you play TED w/ an ETF?
Comment by Barry Hatfield — March 22, 2009 @ 10:45 pm
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