Stocks put in a pretty good showing today, considering the soft earnings/revenue picture on a number of Big Cap companies. Even Housing Starts, or the lack thereof, have been taken in stride. Stocks which at one time were off nearly 200, reversed course, closing up 75 points on the day on the Dow. Nasdaq traders had similar results with a plus 24 point gain as the gun sounded. Technical structure on both equity platforms charted what we call an “outside day up”. Bullish all the way.
Treasuries and mortgage backs hung in there, yet pared their gains to present levels of plus 4/32’s (10 year note) and plus 1/32nd MBS. Nothing huge to read into but just the same, the follow through buying in stocks is worth notice. 10 year notes will retain their bullish edge (day end trading) but are starting to lack a trend reading. This typically will tell us that buyers of treasuries still have the advantage but will need a little giddy up go to stay at these levels. Good time for Austin mortgage borrowers to put both hands on the wheel.