ARCHIVED BLOG POSTS
2010
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Stocks once again did their best impression of a roller coaster. The Dow opened on the down side due to continued concern about the burgeoning European debt crisis and a disappointing dip in home prices. After being down 100 points during the morning, some good news appeared with brought the Do...
11/30/2010
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Mortgage backed securities (MBS) closed down 6 basis points at 98.31 having once again failed to overtake tough resitance offered by the 200 day moving average. MBS bonds traded up 38 basis points early in the day drawing additional funds as a result of the safe haven effect courtesy of our Euro...
11/30/2010
Continued woes in the European Economic Union had stocks wobbling like young Harvey the protagonist of Kipling's Captain Courageous after smoking a stogie on the deck of the "We're Here". With no economic reports in play, traders weighed the woe caused by the sword rattling in Korea against debt...
11/29/2010
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Mortgage backed securities (MBS) closed up 44 basis points today at 98.44 having passed through one level of resistance posed by the 11/15 close. The formidable resistance offered by the 200 day moving average is still 42 basis points above. If the safe haven factor caused by the European/Iris...
11/29/2010
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Driving recent interest rate hikes was a massive selloff in mortgage backed securities. MBS traders see the additional Fed purchases as an impediment to their progress. Remember that bonds typically sell on good news. Nominally the goal is to make money more available to consumers. The real g...
11/27/2010
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Rates have been on the rise since the Fed launched QE 2. The second round of quantitative easing. As of Friday the 30 year fixed conforming rate was 4.50% and the high balance conforming was at 4.625%. The best 30 year jumbo was at 5.125%. We have a new investor that is offering a 5/1 ARM up ...
11/27/2010
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I wish all my readers out there a blessed and peaceful Thanksgiving retreat from the bustling pace of life. In order to set the tone I have written the poem below about some things for which I am thankful. I hope you enjoy the poem and feel free to share it with whomever you like. Happy Thanks...
11/24/2010
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Mortgage backed securities (MBS) closed down 91 basis poiints today at 97.69 having crashed through not one but two levels of support. Any attempt to regain some of the losses that have occured since the Fed moved forward on QE2 disintegrated today. A positive first time jobelss claims number s...
11/24/2010
World crises are always bad news for stocks and today was no different. North Korea's bad acting set the stage for a miserable day on stocks arorund the world. Despite a positive revision of the 3rd quarter GDP, the dollar rally and a set back in existing house sales caused an awful day for equ...
11/23/2010
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Mortgage backed securities (MBS) closed up 6 basis points today at 98.59 fter having made yet another run at the 200 day moving average before being rebuffed by the strong resistance level. Once again, today represented the classic pattern of bonds rallying on bad news in reaction to the unsolic...
11/23/2010
