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

ByDragonfly Capital
AuthorGregory W. Harmon
Published 09/27/2012, 08:41 AM
Updated 05/14/2017, 06:45 AM
RSI
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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.
MUB
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.

Disclaimer: 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.

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