Locking Bias

Initial Jobless Claims were reported at 366,000, and that is just slightly higher than expectations of 360,000.  But, the headlines point to the 4 week average hitting a 5 year low.  That just goes to show , it’s all a matter of how you see it.   Productivity for the 4^th quarter was reported, and came in at -2.0%.  That was below expectations, and it indicates a higher cost to produce at the same rate.  This is considered a gauge for potential future inflationary trends.  Stocks opened lower as it appears European markets are the influence, and they are focused on their financial and economic problems once again.  This pressure has mortgage bonds just slightly positive today, but they are still just below the 200 DMA.  Price has been repeatedly knocked lower by the 200 DMA, so we will suggest a locking bias on short term transactions.