Junk bonds imploding, speculation dying...

The chart from NFTRH159 tells the story.  Junk bonds - a proxy NFTRH uses for the "will to speculate" by casino patrons - failed the breakout and now test the lows, while the 'junk' to 'investment grade' ratio (lower panel) never did break upward.  That was the signal we were looking for to assign any sort of longevity to the bull speculation case, and it just died on the vine.

As NFTRH (and I believe this blog) have been noting since before the 'October (bull) Pivot', any rally that generates would be a BEAR MARKET rally.  It has ended and any relief the market may find into Santa season is simply that.  A bear market relief rally.  Speculation is dying by this bond ratio measure, by the gold-silver ratio, by gold-commodities ratios and so on an so forth.

This is not a nice picture folks, and sensible people should have risk management front and center at all times.

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