by Tom McClellan
Financial Sense
The regular McClellan Oscillator is based on Advance-Decline (A-D) data for the NYSE. But the same calculation can be done on other sets of A-D data. This week’s chart looks at an interesting example of that, with a big message for the current moment.
The Financial Industry Regulatory Authority (FINRA) kindly publishes data on Advances and Declines for corporate bonds, breaking out totals for Investment Grade, High Yield, and Convertible. Each category is interesting in its own right, but I find the High Yield numbers the most interesting, perhaps because of the strong correlation that such bonds have to the movements of the stock market.