Floating Bias

It’s a quick move back to the downside for stocks, as disappointing earnings and European fears have the Dow lower by over 170 points at the moment.  Couple that with poisoned letters being sent to Washington, and the financial environment seems a little too shaky for many investors.  Germany’s DAX index closed down 2.34%, and that is a technical breakdown from a charting perspective. That is not a good sign from the strongest nation in the Euro, and could be the precursor to more in depth issues down the road.   Mortgage bonds are receiving the benefit as the bond market continues to grind higher.  Pricing is back to the previous range where it was knocked down quickly.  With stocks under pressure again, we will suggest a floating bias.