Nice day for note futures and mortgage pricing

Nice day for note futures and mortgage pricing.  That of course is if you are a bond bull.  Short covering on better than average volume ruled the day with many large sized players buying cash and futures (treasuries).  This is significant as these guys have deep pockets and can withstand the volatility.  Also in our favor is that the close penetrated and closed above the 21 day moving average.

Joining the party is the 14 day RSI (Relative Strength Index) which has formed a bullish divergence.  This is a strong endorsement of future upside (rally) to come.  Tend intensity has now turned neutral and should limit the downside (selling).  The only fly in the ointment could be tomorrow’s 10 year treasury auction.  With 40 billion of paper crossing the block at 12:00 cst, we’ll need to pay close attention.  For now, enjoy the gains in this wild and wacky trading world.

About Max Leaman Austin Mortgage

GREAT RATES, LOW FEES, CLOSE ON TIME™ ---- 2012 Ranked #1 Austin Residential Mortgage Lender (Austin Business Journal) 2010, 2011 & 2012 Five Star Professional (Texas Monthly) 2009, 2010, 2011, 2012, 2013 PrimeLending Chairman's Circle Award 2009, 2010, 2011, 2012 Scotsman Guide Top Originator (Top 200 Mortgage Professionals in U.S.A.) Better Business Bureau "A+ Rating" National Lender Rankings (Scotsman Guide): Top Purchase Volume (No. 10) Most Loans Closed (No. 32) Top Dollar Volume (No. 88)

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