Locking is a safe bet

Yesterday was the biggest sell off the stock market had seen since November, with the catalyst being the Italian political elections.  It appears there will be political gridlock in Italy, something we in the U.S.A. are all too familiar with.  The financial problem has to do with Italy’s prospective inability to follow the austerity measures, and Italy has the 3^rd largest bond market in the world.  Europe may take center stage again with their continuing financial saga for a while.  mortgage bonds had their best day yesterday in quite a while.  The current prices are just underneath the 200 DMA and the falling trend line.  They will likely take their cue for direction from here from stocks.  Locking in the gains is a safe play, but a very cautious float with a finger on the lock trigger might pay off, if you can tolerate the risk.