Morning Corner 10.12.11

HYG (weekly info)
-no change (below mid)
low= 82.83
rev= 86.86; mid= 84.85

Last week HYG formed a hammer. This week is trying to confirm it. It tested the weekly 3LB mid and failed. It's still below all SMA's. It held its 38.2% retrace last week.

LQD (weekly info)
-no change (below mid)
direction=up (1 bar)
high= 113.59
rev= 111.04; mid= 112.31

None of the moves in LQD have been decisive in determining direction. It appears to have tested the weekly 3LB reversal and passed. It's only below its SMA(21). It hasn't dropped far enough to test the minor retraces.

MUB (weekly info)
-no change (below mid)
high= 107.25
rev= 104.97; mid= 106.11

MUB had a nasty confirmation of a dark cloud cover. This week is trying to slow down the carnage (but is has already made a lower low). It tested and held its weekly 3LB reversal. It tested and has failed the SMA(21) so far this week.


AmenRa said...

The EFSF has a failing vote and EURUSD is higher on hopes that the revote will pass. The US appears to be starting a trade war with China and futures soar. No mas.

Anonymous said...


re: Elephants/Mice..

yes, see that now..sorry for being so Dense~


AmenRa said...

That move in the ES from 3:35AM-4:25AM was a bear skinning expedition.

Mel said...

Harrisburg, PA. files for bankruptcy...previous rescue plans were they didn't ask enough of bondholders and the bond insurer, Assured Guaranty...

Didn't Meredith get slagged for suggesting some such?

"It’s not just the Charlie Sheens of Hollywood who will say or do anything for attention. Wall Street has its own class of clowns."

"First up is Meredith Whitney"...from that guru David Weidner at MarketWatch...

ben22 said...

the thing about Whitney's call though is that she's still claiming it is going "exactly as she expected" however, go back and read her call carefully about what would happen this year

unless H-burg is going to set off a massive wave of defaults in the next 60 days she's been flat wrong

muni's have done quite well this year as an asset class, just a fact at this point

further, I read recently that her $100,000 report contained almost no unique analysis that could not be found for free via various google/other web search, I've seen this from several large bond desks and some individuals that comment on fixed income on a regular basis, whether or not its true I've got no clue and I'm not going to pay $100k to find out.

there is a chance that she's still riding her celebrity fame from 2008 rather than making a good call here, people hating her were probably on the other side of her 08 calls on banks.

I'm not about to call her an idiot, she's not, but she's not been right about this either.

Mel said...

Thanks Ben

Frankly, I haven't taken much more than a surface read of anything lately..its not my gig...but I'm glad to see you're responding.

Mel said...

As for surface reads...I wouldn't throw MW out of bed for eating crackers.

Andy T said...

i thot harrisburg, PA was a bigger city...

only about 50k...according to the Wiki.

Andy T said...

it's going to take a much bigger city to default to cause any serious 'wrinkles'....

ben22 said...

harrisburg is pretty crappy place and it is small, been through there many times

I think the coolest thing about MW is that she's married to a WWF wrestler

I wonder if they practice moves at home....

Mel said...

No doubt..shwinging from the rafters...

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