Thursday, February 28, 2008

Upper Left To Lower Right For Municipal Bonds


Bespoke provides us with this chart. The downtrend is till in force despite some modestly better behavior in the price of the monoline bond insurers be( i don't know why they are still called monoline since they cover mortgages and municipals. Maybe because only one of the lines is profitable , or maybe because the stock prices have been tracing out a one way line to the downside.)
Dennis Gartman would say this chart was moving from upper right to lower left and there are only 3 possible positions: Short, slightly short, or flat. I agree with that view. Wait for signs of life before trying to buy this stuff. Remembe bottom picking is rude behavior.

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