I Hope Warren Waited For a Proper Signal Before Selling Muni’s
- Posted by Greg Harmon
- on September 27th, 2012
I hope Warren took my advice in Did Warren Have Help in his Muni Call? and waited for a proper sell signal to start dumping his municipal bonds. I suspect that since he is pretty old and set in his ways that he did not. Bummer for him. Take a look at the daily chart for the iShares S&P National Municipal Bond Fund, $MUB, below. Since mid August it has just been consolidating within the ascending triangle. Now it is moving towards a break out higher and has support from the rising Relative Strength Index (RSI) that is making a new higher high and a Moving Average Convergence
Divergence indicator (MACD) that is positive. A break above 112 and Warren might want to have another chat with Meredith Whitney (yes, they have been known to ‘tub’ together) about that sale because the $MUB will have a target higher of 118.20. Oh, and Warren, don’t let her talk you out of buying them back this time. Even your longer term perspective will like that the 3-box reversal Point and Figure chart (PnF) has a price objective of 155. Stick to your guns.
Dragonfly Capital Views Anniversary Celebration
For a limited time the Opportunity to join the Dragonfly Capital Views Premium Membership on an Annual basis is available for only $600.
This is 20% off of the standard annual subscription price and nearly 45% off of a rolling monthly membership! Don’t miss this limited opportunity! Sign up here.
Want to learn more about Dragonfly Capital Views?
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
Dragonfly Capital Updates
- Top Trade Ideas for the Week of May 20, 2013: The Rest
- Top Trade Ideas for the Week of May 20, 2013: The Rest Premium
- Top Trade Ideas for the Week of May 20, 2013: The Best
- SPY Trends and Influencers May 18, 2013
- Cleveland’s Best Linkfest!
- Macro Week in Review/Preview May 17, 2013
- Dragonfly Capital Views Performance Through May 2013 Expiry
- Premium Earnings 5-17-13
- Which Way is Up?
- Cicso Kid Was a Friend of Mine