Floating bias

After several days of climbing higher, stocks are taking a breather.  This comes after the stock market hit a 2 month high.  The hope from investors that a Fiscal Cliff agreement will be reached by the end of the year has been evident in equities, regardless of the speech rhetoric that Washington has delivered.  mortgage bonds have been pressured lower between the rise in stocks combined with some of the worst auction results of the year.  The result of this over the past several days has pressured interest rates higher.  Still, the Fed is committed to bond buying, and bonds are up this morning with rates still close to all time lows.  We will start today with a floating bias.