ARCHIVED BLOG POSTS
2010
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Stock futures painted a rosy picture this morning after yesterday's selloff. The market opened up as the Euro was rallying against the dollar. Morgan Stanley showed a loss while Wells Fargo reported record profits. The Secretary of HUD reported that there was no pattern of paperwork problems wi...
10/20/2010
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Mortgage backed securities (MBS) closed up 9 basis points at 101.41 having come to rest just 25 basis points below resistance offered by the close of 10/7. Mortgage bonds opened nearly flat but received a boost when the Fed announced that they would purchase $500 billion in Treasuries over the c...
10/20/2010
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China surprised world markets by the raising the interest rate of its Central Peoples Bank by .25%. The effect set off a rally in the dollar against the Euro. As the dollar rises, stocks fall because U.S. products sold across the world will be more costly and accordingly less in demand. Combin...
10/19/2010
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Mortgage backed securities (MBS) closed up 28 basis points today at 101.31 having solidified support and having come to rest just 14 basis points below resistance. MBS bonds opened lower but began to gain ground as stocks plummeted under the weight of some poor earnings reports. The 30 year con...
10/19/2010
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Citigroup outpaced expectations with a 3rd quarter profit of $2.2 billion. That sparked a moderate rally in financial stocks despite the ongoing foreclosure debacle and stocks opened higher on the news. In addition, the NAHB housing index inched slightly forward adding additional positive news ...
10/18/2010
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Mortgage backed securities (MBS) closed up 38 basis points today at 101.03 having broken through resistance formed by a recent high close. A poor readout on Industril Production was the bad news that powered the MBS bonds advance. They had traded farther above resistance during the day. Theref...
10/18/2010
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Stocks jumped out to a good start this morning on news of low inflation. More Fed speak hinted at quantitative easing. The rally started to fall apart early and when consumer sentiment numbers fell short of expectations, equities turned sharply lower. The Dow wound up down 31 points. It was a...
10/15/2010
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Mortgage backed securities (MBS) closed down 28 basis today at 100.66 having fallen closer to support offered by the 25 day moving average. Despite good news on inflation, which is bond friendly, MBS bonds had to face an improved reading from the Empire State Manauracturing Index. The hint that...
10/15/2010
Strong earnings reports from Chase and Intel and continued positive reaction to the quantitative easing news from the Fed propelled stocks to an excellent day. The dollar fell to the Euro which caused commodities, which are traded in dollars, to advance. Gold closed at a record high of $1,370. ...
10/13/2010
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Mortgage backed securities (MBS) closed up 28 basis points at 101.22 after having broken through resistance at 101.00 and coming to rest below the double resistance of the recent record closings. The positive reaction to the Fed minutes yesterday took a day to materialize. Traders were buoyed b...
10/13/2010
