Mortgage bonds remain strong, holding their position above their 200-day moving average for the past few days. Although they spent a short time yesterday below this critical level, they were able to find their footing and rise back above.
Tomorrow is Job day, with the Bureau of Labor Statistics set to announce their estimate of new hires for the month of November. For once in a long time, the market is anticipating a number north of 300,000. However, just as last month’s number was taken with a grain of salt, this month should be as well. This will be considered a ‘snap back” month that will reflect rehired employees who lost their jobs following the floods.
Details on the Republican’s proposed tax plan were released this morning. As expected, opposition is claiming corporate welfare and excessive benefit to the rich. Now it’s time for the battle to heat up. It will be interesting to see how this impacts the markets
With the technical picture looking strong, we will suggest floating into the Jobs report. However, realize that there is risk in doing so. Be prepared to lock should markets respond adversely.