After the typical reaction off the initial tag of T2, the MBI (MBIA Inc) swing short trade is close to triggering the next sell signal/objective short add-on or re-entry on a break below T2 & more importantly, a red flag for the municipal bond market. Original & updated daily charts below.
MBI daily March 16th
MBI daily May 10th
Likewise, following the typical reaction off the initial tag of T1 & objective re-entry or add-on at the bounce into resistance, AMBC (Ambac Financial Group) is close to triggering the next sell signal on a solid break below T1. Initial & updated daily charts below.
AMBC daily March 16th
AMBC daily May 10th
Although not an active trade, I’m watching AGO (Assured Guaranty, another one of the largest municpal bond insurers) for both a sell signal/objective short entry on a break below 45 as well as clues to any building issues with the muni bond market. Daily chart below.
AGO daily May 10th
I’ll continue to monitor the various credit/bond markets (i.e.- Treasuries, investment grade corporate bonds, junk bonds, fallen angels, credit spreads, etc.) as well as various financial sub-sectors (insurance, private equity, broker/dealers, etc..) for the next potential shoe to drop as all most eyes still remain on the banking sector.