High yielding ETFs…

090825jnk1In general we don’t particularly look at yield — in general because it’s so miserable on standard issues.  But here are some ETFs which do have respectable yields ranging from about 7 to 13%.  JNK here is approaching  resistance in the form of  bear trend lines and horizontal resistance.  But there is a way to play this, as well as the other issues we will mention here.  Divide the capital you want to invest into three or four tranches and put 1 tranch (or unit) in now, with a stop 5% under the nearby low.  If the resistance is overcome put in another unit, and so on.

Technical investors are much better equipped to deal with questions like this than the unaware investor.  We scale in and have our stops set in case the market turns.  The unenlightened plunge in without any awareness of the technical situation and then moan and groan as they suffer  capital losses, not knowing what to do.

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PFF is in a similar situation.

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HYD has the best chart of the group, if the lowest yield.  Since there is no obvious technical stop here we would put a money management stop about 6 or 7% down and watch with interest (about 7%).

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