Cautiously Floating

It’s a fairly light week in terms of economic reports, but markets started today with June’s Existing Home Sales coming in below expectations.  The catalyst for the week is expected to be corporate earnings, and McDonald’s started it off with disappointing numbers.  Many investors will take a worldwide company like McDonald’s as a gauge for global economic direction, so McDonald’s numbers might be representing more than just burger sales.  The bond market will have $99 billion in auctions this week starting tomorrow.  mortgage bonds have moved above the 25 DMA, but are still trying to break out of the dominant down trend.  In addition, bonds avoided the common afternoon sell off last Friday, and are positive at the open so far.  We will start today with a cautious floating bias.