post w/ the gang over @seeitmarket about Germany and some more …

the “powder keg” in this global, interconnected financial world appears to be Germany w/ $DB woes and Volkswagon and a bunch of debt.  here’s a post about that:

German DAX Weighed Down By VW Scandal And DB Concerns

over in the states we also need to watch a very key level in the JNK ETF.  Essentially, Junk Bonds are risky low grade bonds and show the appetite of the credit markets.  In this day and age of grabbing for yield, somewhere, they have offered a speculative means to grab some yield, maybe.  But in times of volatility they fall out of favor … as you can see by the chart below, the $JNK ETF is getting ready for the test of a very key level – 35.  It’s nothing more than a pattern but you can see since the “recovery” of 2009 this level has been key.  Watch this level, closely.

also, take a note of the $DB overlaid on top of $JNK.  they shake and move in the same fashion …when the worlds largest holder of derivatives is shaking and jiving w/ $JNK it makes me perk up.  now for the “if-then”

IF

$JNK PATTERN HOLDS IN AROUND 35

THEN

$DB HANGS ON AND LIVES ANOTHER DAY

ELSE

THEY BOTH GO DOWN – ALBEIT – PRETTY HARD (?)

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