Municipals-Request

Thursday's daily wrap featured MUB and several other posts this week and in past months have talked about unfunded pensions liabilities and municipal bonds being in trouble and the trouble municipals may cause for pensioners.

Today MUB-(S&P National Municipal Bond Index ETF) is being taken to the woodshed once again. This is a trend I expect to continue with various oversold bounces in-between each leg down. I think for those so inclined, this is a trade that can be taken AT THE RIGHT SPOT.

MUB breaks support on heavy volume today.

3C WARNED OF TROUBLE IN MUNICIPALS ON THE DAILY AND REMAINS NEGATIVE ON THEM.

After a year of confirmation, 3C shows a very negative daily profile just before the fall. Yes, smart money was moving out, perhaps PIMCO.

What we need now if you are interested in shorting munis is an entry with low risk. This may be your chance. The 1, 5 and 10 minute 3C charts are all showing Specialist accumulation for what I believe will be a bounce. If you are interested in the trade on the short side, keep in touch and when we see the same charts showing negative divergences/distribution, we'll have our low/lower risk entry.

 1 min.

 5 min.

10 min.