By Stephen Blumenthal, CEO, CMG Capital Management Group

We’ve been talking about the overvalued and aged cyclical bull market each week in Trade Signals and On My Radar for quite some time. Given the last three days of selling pressure – the word “crash” comes to mind. We’ve seen this before yet it doesn’t make the scare any less scary for your clients.

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CMG Capital Management Group CEO Steve Blumenthal talks to Barron’s “Income Investing” columnist Amey Stone about high yield bonds. Excerpt below from the  Barron’s story Pain in High Yield Worsens:

Steve Blumenthal, CEO of CMG Capital Management Group, runs a tactical strategy that moves in and out of high yield based mainly on price momentum. He has largely been out of high yield since July. He thinks that demand for junk bonds could increase now that yields are above 7%. He will get back in when the index starts to move higher.

“You have to be very nimble with high yield exposure today,” Blumenthal told Barron’s.

I believe China’s surprise Yuan devaluation keeps the Fed on hold.  Raising rates will further strengthen the dollar.  A stronger dollar may ultimately be our greatest market risk – triggering crisis in the $9 trillion EM U.S. dollar denominated debt.

While the US economy looks ok, the global economy is at or near recession.  We are in a debt driven deflationary spiral.  So as market stress intensifies we collectively hope and pray for Fed support.  Watch for Fed signaling that September is off the table.  All about that Fed – until it’s not.

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France isn’t that far away from a sovereign debt crisis, and Greece’s problems aren’t going away either, according to John Mauldin, Chairman of Mauldin Economics.

Mauldin described Greece’s latest agreement with its creditors as just another example of kicking the can down the road. ‘They’re borrowing money that they can’t pay, on top of money that they already can’t pay,’ said Mauldin. On Tuesday, Greece reached an agreement with its creditors on new bailout terms, but Mauldin believes a Greek exit from the eurozone remains a possibility in the future. ‘There has never been a monetary union in the history of the world that has stayed together, that hasn’t fallen apart, such as the Euro, without having a fiscal union,’ said Mauldin, who believes the next crisis will prompt the creation of a true fiscal union. ‘I think they actually do this, and I think they do this when France itself goes into a sovereign debt crisis. And France is not that far away from it.’ Mauldin spoke with TheStreet’s Rhonda Schaffler at Camp Kotok, an annual gathering of economists and money managers in Maine. See the Street: Economist John Mauldin Says Eurozone Crisis Will Only Get Worse

RELATED: On My Radar: High Probability of a Global Recession

“US stocks declined for the seventh straight day on Friday, a dismal streak not seen for almost four years. The S&P 500 is now down 5 of the last 7 weeks although in total it is just 2.5% below the all time high. If you just own the index I suppose that is not much to be concerned about but there are warning signs galore. The S&P 500 is also basically unchanged in price for now over 8 months dating back to late November of 2014. That might not be a correction in price according to the accepted definition but it probably qualifies as a correction in time. And if you own anything other than the index you are probably suffering your own personal correction as the index itself only tells part of the story.

“If one defines rising as above the 200 day moving average (another one of those widely accepted definitions) then the S&P 500 is barely hanging on to bull market status with about 54% of the index above that line.

“Unfortunately, most other indexes show a majority of their constituents below that magic barrier. Despite all the recent hoopla about record highs, only 43% of NASDAQ stocks are still in uptrends. The NYSE fares even worse with just 39% moving higher. The small cap indexes have done even worse than their large cap counterparts; the Russell 2000 is no higher now than it was in March 2014, 5 quarters ago. So, I don’t know if we call it a correction but by time and price the individual constituents of the stock market indexes are not faring nearly as well as the indexes themselves. That is a result of using capitalization as a weighting factor, with the largest stocks having the greatest influence over the index.”

See the full story: The Correction Gains Momentum – Stocks Down 7 Straight Days by David Stockman.