Be ready to lock

There are no official economic reports on the calendar today, but there were a few housing reports that supported the continued improvement in value.  Both CoreLogic and Clear Capital showed research of year over year gains ranging between 9.35% and 11.9%.  That is still approximately 33% below peak values.  Stocks are in the negative so far, as IBM is responsible for weighing on the Dow due to downgrades.  mortgage bonds are still walking the tight wire of the 25 DMA, so we will keep a cautious floating bias for now.  However, the upcoming auction results could change the picture quickly, so be ready to lock.