Trading at 200 DMA

Initial Claims came in at 385,000 for last week, and that was well above estimates of 345,000.  This is also the highest weekly number since November.  North Korea may be in all the headlines with threats of nuclear war, but the Dow and S&P 500 are still in the green this morning.  Even so, bond investors seem to be a bit more cautious as mortgage bonds are higher on the negative news.  The emphasis is all on tomorrow’s monthly jobs report, especially with ADP’s and the Initial Claims being on the disappointing side.  mortgage bonds have had a great run up over the last few weeks, and are now trading right at the 200 DMA.  With the volatility that tomorrow’s report brings, we will suggest locking in the recent gains.