28 Mar Locking Bias
It’s the big day for the country of Cyprus, as banks opened for the first time in 11 days. The new restrictions will limit people from withdrawing any more than 300 Euro’s a day. So far, they have not had a run on the banks. Economic news gave us Initial Jobless Claims at 375,000, which was higher than expected, as well as the final revision of 4th quarter GDP at 0.4% growth. The GDP figure was higher than last revision of 0.1%, but it is still a sign of a struggling economy. Despite the news, stocks pushed higher, with the S&P 500 crossing over 1565 intraday. The markets close early today and will be closed tomorrow as well. mortgage bonds are stuck between the 25 and 50 DMA. The 50 DMA has held prices back since December, so given the gains seen over the last 5-6 trading sessions, we will suggest locking short term transactions. With markets being closed tomorrow, we will post our next update on Monday.