17 Jun LOCKING BIAS
This is a busy week for the economic calendar, with the FOMC Meeting concluding as the highlight on Wednesday. Stocks seem to be confident that the message will be equity friendly, as the Dow is up over 150 points today. It is widely expected that Ben Bernanke will assure the markets that any suggestion of tapering down on QE will not occur prematurely. The Home Builders’ NAHB Housing Market Index broke the level of 50, and in positive territory for the first time in 7 years. mortgagebonds remain in an oversold state and want to move up , but positive economic data has continued to push bonds lower. If prices hold, it will be somewhat of a positive sign, but the safe play would be to lock. Wednesday’s outcome will likely determine the next phase of interest rates direction.