16 Jan Locking bias
The Consumer Price Index (CPI) was released this morning and inflation showed to remain in check. The big names in earnings news continue to beat estimates, with JP Morgan and Goldman Sachs reporting better than expected. In housing news, Corelogic reported that home prices showed a 7.4% increase from 1 year ago in November, the biggest year over year increase since 2006. mortgage bonds are moving sideways again and are starting another trading day below the resistance of the 25 and 100 DMA. Technically, prices look as if they have a greater chance of moving lower based on the trend since early December. That means interest rates will have a tough time pushing any lower without a new catalyst. We will suggest locking in the short term.