Posted by: stockscooter | December 3, 2012

10 Days of Fear for the Price of 1

California municipal bonds – A picture is worth a thousand words.  Today took-out the last 10 days of buying.  Do you think there may be some concern rising in the near-term? The past 3 weeks seem to be a blow-off top.  Prices seem to project down to the 110 area.  Personally, I don’t think it will stop there.  This may be part of a grand sell-off, based upon revenue imbalances that are pretty severe.

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The next monthly chart shows the blow-off top from a larger perspective.  A 61.80 fib retrace targets 104.  That’s a 12 % correction.  I’m a believer that it would only be an initial wave 1, with multiple years of carnage ahead.  This may be a barometer of the markets as a whole.

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