Cautiously Floating Bias

Markets have stayed close to even today as investors are caught between some good economic data and the ever looming cloud of the Fiscal Cliff.  The final read of 3^rd quarter GDP came in at 3.1% which was above the 2.87% expectation.  Then, existing Home Sales came in at 5.04 million  versus the 4.90 million annualized projection.  Finally, the Philly Fed Index manufacturing survey was 8.1 versus an estimate of -1.3.  In spite of all the positive news of the morning, all major stock indexes in the red for the moment.  mortgage bonds are slightly positive and are trying to stay above the 100 DMA.  We will advise a cautious floating bias.