Very cautious floating

The Dow closed at its all-time high yesterday and is continuing the move higher at the open this morning.  The ADP Employment report beat estimates of 150,000 with a figure of 198,000 new jobs, with January being revised higher by 23,000 as well.  It’s interesting to hear investors perspective, as many of them do not appear overly confident with stocks at these levels.  A pullback may be in order, but bad politics and a struggling economy have not been enough at this point.  mortgagebonds have inched their way lower for the last 4 days and are trying to stay above the 25 DMA.  This move lower has pressured interest rates higher.  We will suggest a cautious floating bias as long as the 25 DMA holds, but be prepared to lock if bonds break down lower.