TGIF!! This is also my son's last day of school for the Christmas break - I love having the kids home. Tomorrow is a BIG day with my son playing two basketball games for his high school team and the Utes play Duke at Madison Square Garden at 12:00 EST while the Utah football team plays BYU in the Vegas bowl at 3:30 EST. Needless to say, I'm going to have to record both of the Utah games since my son's games will overlap both games a bit. But on to the matter at hand - the mortgage bond market and the interest rates that are derived from it.
There was no data today and it will be light next week. If you read my post yesterday, you know that I recommended floating (with caution - keep a sharp eye on the market) and today we are getting a bit of follow-through. The FNMA benchmark bond closed up 27 basis points yesterday and is currently up 16 basis points, 4 basis points off its high for the day and 6 basis points below the 1st level of resistance which sits at 103.31. As for the RSI, it is below the mid-point between oversold and overbought so there's more of a chance for more buying.
I will reiterate what I wrote yesterday when I said that next week will be a light trading week which means there could be some wild swings...that don't necessarily mean anything. Markets act completely differently on low volume which is why you could pick up some nice gains if you float but it's also why you could lose them all of you don't watch the market closely and lock quickly if there's a swift move to the downside. I'm available for you through the holidays and would welcome the opportunity to help you, a client or a friend - 702-812-1214 or 801-853-8720. Make it a great day and a better weekend.