Gladstone Investment's 15min chart triggers KDJ Death Cross, Bearish Marubozu signal.

Gladstone Investment's 15-minute chart has exhibited a KDJ Death Cross and a Bearish Marubozu at 04/23/2025 11:45, indicating a shift in the momentum of the stock price towards a downward trajectory. This suggests that the sellers are currently in control of the market and that the bearish momentum is likely to persist.

The recent market turbulence, sparked by new tariffs, has led to a significant drawdown across various asset classes. According to Seeking Alpha [1], higher-quality fixed-income sectors such as TIPS, Agencies, and Munis have performed exceptionally well, while higher-beta assets like CLO Equity CEFs and mortgage REITs have underperformed. The drawdown, characterized by a macro shock rather than a rate shock, has highlighted the resilience of certain sectors and the potential for new income opportunities.

The CEF market has mirrored the broader income market, with elevated stress levels and a high degree of investor risk aversion. Discounts have exacerbated the moves in NAVs, with sector performance mimicking the broader market trends. The average CEF drawdown is larger than 10%, with four other drawdowns over the past decade finishing around 15-18% and two being much larger at 30-40% [1].

High-yield corporate bonds and Munis have shown resilience, with credit spreads widening but remaining above their median value. BNY BDC valuations are below historical averages, and yields have jumped to their highest levels outside of COVID and the GFC. The market has moved towards more attractive lower right quadrant valuations, making it a good time to add to CEFs [1].

Gladstone Investment's 15-minute chart exhibited a KDJ Death Cross and a Bearish Marubozu at 04/23/2025 11:45, indicating a shift in the momentum of the stock price towards a downward trajectory. This suggests that the sellers are currently in control of the market, and the bearish momentum is likely to persist.

Investors who have maintained a countercyclical approach, tilting to higher-yielding / higher-risk assets when valuations cheapen and lower-yielding / lower-risk assets when valuations richen, are better positioned to capitalize on the current market conditions. This approach allows investors to buy higher-beta / higher-yielding beaten down assets when drawdowns occur.

The current market has opened up several attractive, high-yielding opportunities. In the CEF market, investors might consider the Ares Dynamic Credit Allocation Fund (ARDC), trading at an 11% current yield and a 9.4% discount, the Loan / CLO Equity XAI Octagon Floating Rate & Alternative Income Trust (XFLT), trading at a 19% current yield and a 9% discount, and the CLO Equity Eagle Point Credit Co (ECC), trading at a 23% current yield [1].

References:
[1] https://seekingalpha.com/article/4775790-new-income-opportunities-stress-testing-our-2025-playbook