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Second Real Test for Dividend Yield Chasers?
​September 27 2016 ( From TradingView )
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​The Situation

​​
​With Treasury yields back  near historic lows and starting to consolidate,
​investors have gone after yield in other segments of the market; starting
to chase after bonds yield; ​then the  dividend yield is often one of the
​places ​investors ​seek out in that chase for income. ​Financial assets like
​the ​dividend ​stocks ​(SP High Yield Dividend Aristocrats Index ETF SDY)
​had a very good ​performance ​indeed since bottoming out on ​January 20 2016.

Since reaching a new high ever on August 15 2016 for the SDY ETF,
it started a Consolidation Phase to finally break a Support Trendline and started ​Trading into a Downtrend ​channel that started on September 7 2016. ​
(See First Chart Below - Downtrend Channel - Ellipse)
We are now below the 50 DMA (Day Moving Average). (See First Chart Below - Red Line)

But few of us realize ​the ​out performance of the dividend yield stocks​ (SDY ETF) ​compare to the Mighty SP500 Index (SPY ETF) on a relative basis lately since we broke on February 2 2016 the Major Resistance Trendline that started back since April 2013. ​ ​(See Second Chart Below - Red Trendline - Ellipse) Most importantly, we broke on June 9 2016 the Major Daily Trendine on SDY ETF that started back since November 2008; we did fade back below analmost kissed the 200 DMA on a relative basis. (See Second Chart Below - Amber Trendline).
We are now back testing that Amber Trendline (Resistance) critical for Bulls to break.

But the real interesting and surprising part is to acknowledge also the tremendous out performance of the
​SDY ETF compare to the SPDR Barclays Intermediate Term Corporate Bond ETF (ITR ETF) on a relative basis since January 20 2016.  ​
(See Third Chart Below - Ellipse) Dividends stocks are still overvalued on a short term basis compare to corporate bond funds as near testing the Support Trendline (See Third Chart Below - Red Trendline - Ellipse)

​​The market still favor the dividend stocks over the broad stock market indices lately. Simply stated, we are again into another wave of yield chasing as investors takes more and more risks to achieve less and less financial return. Sound familiar? The Federal Reserve still undecided on further rates hikes just provide enough uncertainties to bring finally a consolidation phase within the the Yield Chasers Investment Sphere.
​​

Second Real Test for Dividend Yield Chasers?   $SDY  #Trading #sdy #investing #sp500 #dividend #spy
​Daily Chart ( Candles )
 SP Dividend ETF ( SDY )
20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​​​


Financialiceberg.Com
Daily RATIO
SP Dividend ETF ( SDY )
over SP500 Index ETF ( SPY ) 
​20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​


Financialiceberg.Com
Daily RATIO
SP Dividend ETF ( SDY )
SPDR Barclays Intermediate Term Corporate Bond ETF ( ITR ) 
​20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​


Financialiceberg.Com