20 Dec Floating Stance
A surprisingly higher than expected figure for the 3rd quarter GDP is helping push stocks up. The 3rd and final revision came in at 4.1% versus the previous read of 3.6%. As the last review showed, high inventories attributed to the increased number. However, consumer spending moved higher as well. While aspects of the economy do appear to be improving, there will be that much more emphasis on the 4th quarter readings to see if the trend continues. mortgage bonds are having another slow day, but at least this support level is continuing to hold for now. The remaining trading days of the year may not hold too much change, as volumes tend to drop off significantly. We will maintain a floating bias, as long as this level holds.