25 Jan Extreme Volitility
Markets opened with stocks on the positive side after better than expected economic reports from Germany and positive earnings from U.S. companies. That was enough reason for the S&P 500 to break the psychological 1500 level for a short period this morning. All major stock indexes are in the green still and have been on a tear to the upside all month. New Home Sales for December came in below estimates at 369,000 versus 385,000, but they are still up over 13% year over year. mortgage bonds gapped down at the open and stopped dead at the previous low on January 4th. This has pressured interest rates a notch higher. The 200 DMA is a few basis points below as well. After the locking stance, we will start with a floating bias , as Fed buying should help with support. In the rare case that we break below the 200 DMA, watch for rates to jump to levels unseen in since last September.