Floating Bias

Floating Bias

Economic reports were weak all around this morning, and that has stocks under pressure.  PPI came in at its lowest figure in 10 months due to falling fuel prices, and inflation remained in check as well.  Retail Sales were down also, which seemed to correlate with Consumer Sentiment at a 9 month low as well.  In Europe, Cyprus continues to struggle as their financial woes were underestimated from 17.5 billion Euros, to more like 23 billion Euros.  The lenders, consisting of the ECB, IMF, and European Commission, are not thrilled about more lending for now.  mortgage bonds have benefited from all the negative news, and are trying to push above the 200 DMA again.  We will maintain a cautious floating bias.