Tag Archives: notes

Austin mortgage borrowers are advised to be defensive

October 21, 2010

Austin mortgage borrowers are advised to be defensive. Stocks will be the key. If they slip, we’ll do better. Overall, QE2 will keep a floor under the market. Just the same, we’ll need to deal with the volatility. Continue reading →

Expecting mortgage pricing to hold steady is a pretty good bet

October 19, 2010

Overall, trading today has been a range-bound affair with prices above yesterday’s lows and below yesterday’s highs. Traders call this an “inside day” which is simply a neutral pattern. Expecting mortgage pricing to hold steady is a pretty good bet. Continue reading →

Call it neutral/bearish and not a market to throw caution to the wind

October 15, 2010

Next week will be the true test, one that we would expect will see the market trade sideways to a little better (slightly improving mortgage pricing). Overall, we think this is the low probability trade as QE2, even though it is fully priced in, is a force to be reckoned with. When the Government is the buyer of choice, most follow the ant age, “Don’t fight the Fed.” Continue reading →

Play defense, Austin mortgage borrowers, as the light at the end of the tunnel is not the other side

October 15, 2010

Text book trading here as this baby is tracking the down trend line like a hunting dog. Good news is that we are at good support mentioned this morning. Play defense, Austin mortgage borrowers, as the light at the end of the tunnel is not the other side. Continue reading →

Overall, this 30 year bond auction was not a dog but a pack of them

October 14, 2010

13 billion of 30 year bonds just hit the tape. Yield 3.852% with a whopping 3.2 bps tail. Indirect Bidders and Direct Bidders took 41% of the auction, leaving the street to mop up nearly 60%. Bid to cover stunk at 2.47 to 1. Overall, this was not a dog but a pack of them. Give it a D just because we hate to fail anybody. Bonds, notes, and mortgage backs are trading fast market conditions with the 10 year off ½ point and the bond down over 1 point. MBS now off 5 to 7/32’s. Continue reading →

Austin mortgage borrowers: best to take a conservative approach given the amount of volatility we expect

October 14, 2010

Austin mortgage borrowers: best to take a conservative approach given the amount of volatility we expect. Continue reading →

Best bet for Austin mortgage borrowers is to take a defensive posture

October 13, 2010

Best bet for Austin mortgage borrowers is to take a defensive posture. With so much bond-friendly news priced in, the risk reward for better mortgage pricing is just not there, folks. Continue reading →

Overall, we see the stock market as moving away from any notion of a double dip, instead feeling a little giddy about taking on more risk

September 27, 2010

Overall, we see the stock market as moving away from any notion of a double dip, instead feeling a little giddy about taking on more risk. Reason being is that traders view one of two scenarios playing out, both good for stock prices. Continue reading →

Austin mortgage borrowers are encouraged to take advantage of any rallies

September 24, 2010

Austin mortgage borrowers are encouraged to take advantage of any rallies. Too many cross currents leads to high levels of volatility. Play it safe and take advantage of your opportunities! Continue reading →

Keep your guard up, Austin mortgage borrowers – the volatility is huge

September 21, 2010

The quick trade was to sell bonds, notes and MBS. We have since came off the sell side, to flatten out and recover. Keep your guard up, Austin mortgage borrowers – the volatility is huge. Continue reading →