Suggesting a locking bias

Suggesting a locking bias

The scheduled monthly jobs report was not released today due to the government shutdown.  There are no other market moving reports for now, and markets appear to be in a holding pattern…just like the government.  The Dow closed just under 15,000 yesterday, but has since pushed up just enough to be above the psychological level at the moment. Mortgage bonds were down slightly at the open, and have established a sideways pattern over the last 2 weeks. This is no surprise given the 200 DMA is sitting just above this price range. Most headlines are pointing to the debt ceiling deadline, which is expected to be hit around the 17th of this month. Our same elected politicians that have not been able to avoid the shutdown will be negotiating raising the debt ceiling as well. It seems safe to say that it will not be a smooth transaction. Due to bond pricing sitting right under the 200 DMA, we will suggest locking in the gains for short term transactions.