Floating Bias

Stocks started the morning with momentum as the only catalyst to move higher.  There are no economic reports today, so any surprise news could push the markets either way.  The calendar fills up tomorrow through Friday, with Retail Sales, Initial Jobless Claims, PPI, and CPI on Friday.  mortgage bonds were pushed to a 7 month low, and that has put interest rates to a 7 month high.  To put things in perspective, we are still at historic low levels with the Fed buying plenty of mortgage bonds. mortgage bonds have bounced off of that level of support this morning, so we will stay with a cautious floating bias for now.