I mentioned in a previous post that ABK Ambac was looking good for some sort of bullish breakout and that a move to 1.90 or higher could set it in motion.
It never got to that level and had a bad looking failure today and will probably get some follow through downside tomorrow. I think the correction is going to extend itself and would rather just keep an eye on it for a while.
Some trades were just never meant to be and this might be one of them. But I will give it a second chance if it shows some more good consolidation and then setup for a new possible breakout later in September. Meanwhile there are other fish to fry.
Notably, Citigroup C broke down badly today on heavy volume and Bank of America BAC looks like it has a small head and shoulders top and could break down badly too. So financials seem to be turning less favorable right now.
MBI (MBIA) ascending triangle actually still looks quite bullish and could get a breakout this week. It looks like a better setup than ABK.
