After a 100 plus point about face yesterday, stocks are selling off this morning with the Dow down 200+ points throughout the day. Earnings worries from some major components like United Technologies, Dupont and 3M are outweighing the optimism investors were feeling just last week. Spain is adding to the pressure as well with their continued financial woes. Overall, it’s hard to ignore the repeated global slowdown signs popping up continually. The Dow was above 13,500 last Thursday, thanks to QE3, yet that seems too much for investors to justify given another dose of reality. Although tempered, relative to the pressure stocks are currently under, mortgage bonds are receiving the benefit. The Fed starts its 2 day meeting today that will conclude tomorrow with the monetary policy being released at 12:30pm ET. We will maintain a cautious floating bias.