Municipal bonds are a part of the market I am not monitoring very closely. That’s why I read a lot of websites that cover topics which are not part of my main focus. Not too long ago Meredith Whitney came out predicting a municipal bond crisis. Now Jeffrey Gundlach, who has built a track record of accurately predicting major price moves, chimes in and predicts a collapse.
To make a long story short, Babak’s article sparked my interest to have a closer look at MUB – Municipal Bond ETF and I ended up sending him a chart with my analysis and my technical price targets. Babak has been running his website for years and is doing an excellent job. For those of you who want to stay on top of everything related to sentiment analysis make sure to check out his website! Here are the articles he wrote with his thoughts and background information on a potential municipal bond crisis in the making:
Part 2 (with my chart): http://tradersnarrative.wordpress.com/2011/03/01/rising-wedge-pattern-in-municipal-bond-market/
He who molds the public sentiment… makes statutes and decisions possible or impossible to make. – Abraham Lincoln
My public list with all my charts can be viewed here:
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2791469
Buenas noches!