20 Nov Locking Bias
After a big move higher yesterday, stocks are slightly negative so far today. Investors pushed the Dow up 250 points on the notion that the “Fiscal Cliff” could be avoided. However, we wouldn’t be surprised if a quick deal is put in place to push the deadline further down the road. The complexity of what needs to be done may take much more time than what is left. Ben Bernanke is expected to speak today. As always, his comments could certainly move the market, especially when there is not much other news happening. mortgage bonds continue to trade in a tight range and are currently fighting to stay above the 25 and 50 DMA. We will maintain a cautious floating bias for now, but be on guard to lock if prices drop below the support levels we are now resting on.