Market Comment

Mortgage Bonds are enjoying a nice day so far, but prices could change direction quickly in this volatile environment.
In the news, Stocks are trading lower on disappointing 4th Quarter earnings from Dow component Alcoa, which kicked off the earnings season yesterday. The weakness in Stocks is helping Bonds today.I recommend floating for now. But be prepared to lock if a change of course is needed, especially with Bonds approaching resistance at the 200-Day Moving Average and with another round of Treasury auctions due this afternoon.

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
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