Municipal Have to Take it on the Chin

Check out this article, I've talked to great extent about unfunded pension liabilities, I did NOT know how bad some of these were. Since I don't have a better idea on playing pensions, municipal bonds seem to be the way to go so presenting again, the short trade on MUB

Here's the article


MUB has been bouncing, we are seeing some initial signs of distribution meaning that a position in MUB may soon be looking very good as the correction ends and MUB continues its trend lower.

 15 min negative

 10 min negative

 5 min negative

 1 min negative

Here's a wide stop, the closer we can enter a short to that stop, the better the risk:reward ratio. I think municipal bonds which are already being sold in a wholesale manner are going to eventually lead to defaults in many states. From what I understand and remember, this is one area that the Fed actually thinks it doesn't have jurisdiction, which is probably more the Fed saying,  "we don't want to have anything to do with this mess" then a matter of jurisdiction as the Fed creates jurisdiction just like they create green cotton bills-out of thin air.


Put MUB on your radar-it's a pretty sterile trade as far as correlation goes.