I Hope Warren Waited For a Proper Signal Before Selling Muni’s

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.

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