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 4^th.  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.