Cautious Float

Stocks are breaking down this morning with the Dow below 13,000 and the S&P below 1,400.  Initial Jobless Claims came in at 374,000, matching the previous week’s “revised higher” figure.  The revision higher makes so they don’t have to announce that claims are increasing from last week to this week….   PCE was also reported and showed inflation staying in check.  The market move seems to be driven by a greater chance that the Fed will not announce more stimulus at tomorrow’s symposium, which is a disappointment to stock investors.  mortgage bonds are receiving the benefit for now, but the gain is about even to yesterday’s loss.  At least this keeps rates in check before tomorrow’s event…  We will start with a cautious float stance as long as stocks remain under pressure and bonds are not pressured lower in the face of tomorrow’s all-important Fed statement.