Stocks are higher

Stocks are higher this morning with a move that appears to be on speculation of what the Fed might say tomorrow. The Housing market delivered Starts and Permits for May, with the first slightly below and the later slightly above estimates. There is no headline from Europe at the moment; however, the G20 is meeting in Mexico. One can almost sense the printing presses being fine tuned all around the world, preparing for a currency flooding event… mortgage bonds are still close to even for now. Unless there is some surprise announcement, price movement will likely be limited until tomorrow. Locking is hard to argue with at these levels, which we will suggest on short term transactions. We will be closely monitoring the Fed announcement tomorrow. Should QE3 be announced, look for the stock market to turn higher.