26 Aug Floating Stance
Markets opened to a weaker than expected Durable Goods report that was already forecasted as a low target. -7.3% was the reading, dropping below the -5.0% expected. This adds weight to the other recent disappointing reports of last week, like higher Initial Jobless Claims and weaker New Home Sales. It also keeps investors in the dark regarding the Fed’s approach to tapering. The remainder of the week is busy with economic reports such as Pending Home Sales, Consumer Confidence, GDP, and PCE. Mortgage bonds are up on today’s news and are attempting to maintain their turn around momentum since hitting multi-year lows just last week. That move in bonds pushed interest rates to their highest in over 2 years, but rates have since moved lower with the possibility of tapering being pushed out further. With the current momentum in our favor we will maintain a floating bias.