Investors Still Waiting

Stocks moved higher this morning, but only to recoup the losses from yesterday afternoon’s decline.  We don’t expect any huge movements before the major news events that are just around the corner, including Germany’s court decision and the Fed announcement on Thursday.  Meanwhile, Moody’s rating agency has announced that the U.S. could lose its AAA rating based on results of the upcoming congressional budget negotiations.  Mortgage bonds are capped at current levels which will keep rates from moving any lower for now.  The outcome of the decisions will certainly bring volatility and the pressure is on both Europe and the Fed to print more money.  We will advise locking ahead of the announcement, as there is a clear and significant level of resistance that has kept rates from going any lower.