10 Sep Can you stomach the ride?
There are no economic reports scheduled for today, so investors are giving their attention to the news. It looks like the delay in the potential bombing of Syria is giving stocks a reason to move higher, and bonds a reason to move lower. The bond market also has $31 billion in 3 year note auctions to contend with today. mortgage bond prices were held in check by overhead resistance once again, so the higher probability favors bonds moving lower, meaning higher rates. Technically, mortgagebonds would be probable to move lower, but the news alerts, delayed votes, and uncertainty about Syria will keep markets tense and volatile until a direction is determined. A conservative perspective would suggest locking at the top of the channel, but floating through the volatility and giving events time to play out may pay off if you can stomach the ride.