08 May Starting with a floating stance
Both the Dow and S&P500 closed at new highs yesterday, with the Dow above 15,000 for the first time ever. Stocks continue with the momentum in their favor, putting the pressure on the bond market. There are $24 billion in 10 year notes being auctioned today to potentially add to that pressure. Mortgage bonds are fighting to get back above the 200 DMA, but it is usually a formidable resistance. We will see if the Fed buys enough to push it back above. For now, prices are attempting to hold at this level, so we can start with a cautious floating stance.