27 Feb Strong Locking Bias
Markets started the day with Ben Bernanke on Capitol Hill answering questions before the House Financial Services Committee. Never mind the fact that Durable Goods dropped more than expected and the Sequester is only 2 days away… The Dow has pushed 100 plus points higher, and is above 14,000 once again. It just goes to show that markets do not necessarily make sense, but they are hard to argue with. mortgage bonds are at the top of the channel, with the 200 DMA, the downward trend line and just about every other type of resistance holding it in check. That means the small improvement in interest rates we have seen in the last few days may be all there is for now. We will suggest a locking bias as stocks keep momentum on their side.