After falling for six days in a row, stocks are in rally mode this morning. Ironically, the S&P 500 crossed below its 50 day moving average yesterday, but went on to close just above it. PPI for June was released and rose by 0.1% versus estimates of -.06%, and core PPI was in line with expectations. Consumer Sentiment was just reported and hit a 7 month low. Also making headlines was JP Morgan. After reporting a $5.8 billion trading loss for the year so far, their recent earnings were higher than anticipated. mortgage bonds are flat after hitting a new all-time high a few days ago. We will continue to advise a locking bias on short term transactions.