Positioning For Today's High-Yield Sell Signal

A few weeks ago I wrote about the coming default wave in the high-yield bond market and recommended a tactical strategy for that possible scenario (See Code Red in High Yield).  This may be an opportune time to put that strategy to the test. Recently the strategy flashed a sell signal when the SPDR Barclays High Yield Bond ETF (JNK) dropped below its 21 week exponential moving average, a form of smoothing the price trend line.
Source: Markets