ARCHIVED BLOG POSTS
2010
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Stock futures opened to the downside. When the Empire State Manufacturing numbers came in well below expectations, they continued to flounder. The S& P 500, an unmanaged index of 500 stocks thought to most accurately reflect the U.S. economy, struggled to stay above its technically critical 200...
09/15/2010
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Mortgage backed securities (MBS) closed down 50 basis points today at 99.78 having once again fallen through support offered by the 50 day moving average. MBS bonds closed at their low levels of the day and the Japanese candlestick had a long upper wick. All of these conditions point to a negat...
09/15/2010
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Stock futures opened the day higher and moved up a leg when retail sales came in with a .4% increase. This was higher than the .3% increase expected. When taking auto sales out of the mix the increase was .6%. Stocks were ahead most of the day before falling at the close. The Dow closed down ...
09/14/2010
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Mortgage backed securities (MBS) closed up 44 basis points today at 100.28 having broken through resistance offered by the 50 day moving average and having come to rest just below resistance at the 25 day moving average. This represented the second consecutive day during which the market rallied...
09/14/2010
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The Basel III conference in Switzerland yielded some reassuring news about long term plans to stabilize global banking and prevent the kind of wild swings we have been seeing of late. Markets react poorly to doubt and this news was like a soothing mint to sore throat. In addition, word from Chi...
09/13/2010
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Mortgage backed securities (MBS) closed up 81 basis points today at 99.84 coming to rest just below resistance offered by the 50 day moving average. Surprisingly MBS bonds soared today in the face of good economic news and a rising stock market. Equities and bonds typically trend in opposite di...
09/13/2010
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The Dow closed up to marking the second straight week with positive results. There were no economic reports today and trading was light. As a result the Dow managed only a meager 47 point gain. As I mentioned previously, it appears that the "safe harbor" trading dynamic has left us for now. N...
09/10/2010
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Mortgage backed securities (MBS) closed down 56 basis points today at 99.31 coming to rest not only below the 50 day moving average but also below the low of 7/28. The next level of support is all the way down at 98.12. Today the monthly coupon rollover occurred having reducing the price an add...
09/10/2010
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On news that weeklky unemployment claims were down 27,000 and were below expectations, stocks opened up strongly. Traders were also bolstered by knowing that their Euorrpean counterparts had traded upward for the most of the past week. Unfortunately, however, Deutsche Bank "threw a monkey in th...
09/09/2010
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Mortgage backed securities (MBS) closed down 62 basis points at 99.88 having fallen through the support offered by the 25 day moving average and closing slightly below support at the 50 day moving average. Positive employment news caused MBS traders to run for the hills. As a result, the rate o...
09/09/2010
