Did Someone Say Something?

Stocks are continuing their downward move once again this morning, with the markets stating continued trade war concerns as the reason. At this point, I hope that everyone hears the same, blah, blah, blah as I do. It seems that trade concerns bounce from one day to the next, which the market should have caught onto by now. The trade war scenario helps day traders to profit as the market swings from day to day. However, based on the overall stance of the stock market and where it is relative to all-time highs, the trade war concerns cannot be a clear signal of how investors feel overall. If investors truly feared a trade war, we would not be near record high levels. At this point, I’m unsure as to what it would take to truly create a sense of fear within the markets. The overwhelming resilience has been phenomenal.

Today is a relatively quiet day for economic reports, so mortgage bonds remain trading based on a technical picture. Although the market is relatively close to unchanged for the day, the overall technical outlook is not encouraging for the longer-term direction of mortgage interest rates.

We will maintain our locking bias.