I’m wondering if we might not see a short-term bounce for corporate bonds. Now I’m not saying go out and buy them and I don’t think if they do that it means that Treasury bonds will bounce too, but they are oversold. And a small bounce would help stock market bulls. All that said, I have some put options on LQD I bought last year that expire in 2024 and I have no plan on selling them!

But check out the LQD corporate bond ETF chart.

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If LQD were to bounce it would likely stall out below its 50-day moving average, currently at 124.16.

I wouldn’t buy it – don’t go looking for bottoms in things in a bear market, and of course, someone could have said the same thing in February!

The place for buys is in mining stocks and commodities.

If anything one of the biggest financial trends this year is the superior performance of commodities versus the S&P 500 as you can see from this GCC/SPY relative strength ratio chart. GCC is an ETF that mimics the CRB index.

(Click on image to enlarge)