Locking Bias

Stocks are on the move again, with all indexes positive and the Dow hitting another new high.  There are no economic reports today, but the Fed announcement is scheduled for 2:00 ET, with Ben Bernanke making a statement after.  While no one expects any big surprises, Mr. Bernanke has continued to remind everyone of the state of the economy.  His comments could put a bit of a damper on the stock markets’ party.   The all-time highs just don’t seem to correlate with so many people out of work, the debt and the political stagnation.  It seems obvious to most that the country is not even remotely close to running efficiently, yet the markets charge higher.  The QE funding has clearly been the catalyst for what may be an artificial stock market boom, so any hint of change could spook investors.  mortgage bonds had a good run over the last few days and then backed off resistance right on cue.  Interest rates were at a 7 month high just a few days ago, but still remain below 4% on many 30 year programs.  We will suggest locking before the volatility of the day.