Floating Bias

Stocks saw their worst day of the year yesterday after the Fed minutes implied that the QE buying programs may not go on forever.  It’s easy to stay at the party with a constant flow of food and drink, but investors saw a glimpse of the future where the Fed was not endlessly printing money and lending at zero percent.  Stocks are down today as well as Initial Jobless Claims were higher than expected.  Politicians are back in front as they volley  with the “Sequester” this time.  mortgage bonds held in the current trading range and are trading slightly higher today.  We will start with a cautious floating bias.