15 Jul Cautiously floating
Investors had a few reports to decipher this morning. First, Retail Sales came in lower than expected for June. The Empire State Index for manufacturing was higher than expected, but the employment component was not the positive factor investors were looking for. mortgage bonds have pushed higher, and are trading at a level of resistance from Friday the 5th of July. That day accounted for one of the largest single day drops in mortgage bonds recent history. This is a full week of economic reports, as well as Ben Bernanke speaking in front of the House Financial Services Committee. We will see how the Chairman presents the Fed’s position in relation to QE continuing. We will start the day with a floating bias.