24 Oct Cautiously Floating
Markets are relatively flat this morning after yesterday’s 240 point drop for the Dow. The exception being Facebook, which had shares jump 20% this morning after reporting some much needed good earnings news. New Home Sales for September were reported to be the best in 2.5 years, bolstering the belief that housing may in fact be turning around. Investors will be waiting for any surprises today as the Fed is scheduled to make their monthly monetary policy announcement at 2:15 pm ET. mortgage bonds are trying to hold above a level of support after a rough start for most of October. That said, interest rates are still within reach of historic lows and therefore a benefit to so many. Technically, the bond is showing that an improvement may be in the near future. We will maintain a cautious floating bias into today’s Fed announcement.