28 Feb Remaining at a locking bias
Stocks saw their biggest day of the year yesterday, moving closer to their all-time highs. Indexes posted new 5 year record highs, but still seem compelled to go for the all-time highs. They are relatively flat this morning, despite a lower than expected 4th quarter GDP. The 2nd of 3 reads on Q4 was revised to +0.1% from -.01%. With all the debt to GDP discussion lately, it’s surprising that stocks don’t drop. All-time high euphoria appears to be in charge. mortgage bonds were stopped dead in their tracks at the falling ceiling of resistance, so interest rates will not move any lower for now. We will maintain a locking bias on short term transactions.