24 Jan Locking Bias
Stocks are off to the races again, as the Dow and S&P 500 continue to set new 5 year highs on a daily basis. Initial Jobless Claims were reported at 330,000, which is another 5 year low and below estimates… albeit with the Labor Department using estimates for a few highly populated states. Even so, that is 2 weeks in a row with low figures. Apple Computer stock is down 10% after earnings showed profits didn’t grow as much as investors had hoped for. That is weighing on the Nasdaq and the S&P, but the S&P is still up and the Nasdaq only slightly down. Stock momentum is weighing on bonds, as mortgage bonds are down again right off of resistance of the 25 DMA. Stocks have favor, so we will advise a locking bias on short term transactions.