Sleepy Municipals For the Win!

• Posted by Greg Harmon
• on January 31st, 2014

Three weeks ago I took a trade in the Municipal Bond ETF, $MUB, based on this technical review: Municipals Are Interesting For a Trade. It turned out to be a great trade but shook me out on a stop last week. Now heading into the end of the month, a review of that Municipals chart with a longer timeframe suggests that it is the place to be on a longer time scale as well. With one day to go in January, the ETF is moving above the 20 month Simple Moving Average (SMA) for the first time since May 2013. The current move targets a Measured move higher to the 110 area and above that the broad movement suggests that 120 is possible. The upward price action is supported by the rising RSI and the MACD flattening

is a positive sign, although not re-enforcing yet. For the longer term investor, an entry here with a stop under the monthly low at about 103 shows a very good reward to risk ratio. It has options as well so you can make some extra income selling covered calls along the way.

Want to learn more about Dragonfly Capital Views?

Dragonfly Capital Views Performance Through January 2014 Expiry and sign up here for the free 7 day trial before you pay.

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