11 Dec Waiting for any indicators on QE4
Markets opened with stocks moving higher on positive data from German investor confidence, and a sense that the Fiscal Cliff could be avoided with a deal in the making. With the President making it clear that taxes must go up on higher income earners, the growing talk among republicans is to accept that aspect. This would take the focus off of what seems to be the principal argument for many, and shift negotiations over to the entitlement/spending problems. The Dow is higher by 100 points at the moment, with the Nasdaq and S&P 500 both positive as well. The Fed makes their announcement tomorrow and investors will be waiting for any indication to QE4. mortgage bonds are under pressure, but it looks like Fed buying is keeping losses in check for now. We will continue with a cautious floating bias.