Investors are sifting through mixed news this morning. First of all, company earnings are showing mixed messages, with some reporting higher than expected while others are trending lower. Overall, the report supports the view of continued economic weakness. At the same time, thanks to the Fed’s QE support, the S&P 500 is hitting record highs. On the other side of the ocean, China pushed up its short term lending rates on fears of potential inflation, which adds fear to the market. A slowdown in the world’s number 2 economy would have an impact on the U.S., an additional drag we could do without. mortgage bonds opened positive, and are holding above the 200 DMA for now. If prices can stay above this range convincingly, we will see rates move below the 4% level. We will continue with a floating bias.