Junk Bond Doomsaying before rally?

http://www.marketwatch.com/story/corporate-bond-rally-is-next-to-bust-some-fear-2014-05-13

This story details how UBS and other banks/Noriel Roubini recently advised investors to sell Junk Bonds. UBS made the call to investors on monday. JNK gapped higher before selling off midday, then rallying back at the end of day ending at a new high for the day. Volume was also relatively high this day which may evidence the selling of dumb money and the subsequent picking up of smart money.

Let’s see how this scenario plays out in the next few weeks and months. JNK is currently in a long term ascending triangle formation at multiyear highs. Note: Kimble charting has said that junk bonds are sitting right under a magic resistance line that it hasn’t broke in over 10 years. He says that junk bonds usually correct pretty far once this line is tested.

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