Posted To: MBS Commentary

Due to the "anything can happen" nature of financial markets AND the fact that traders can trade what we can predict, I rarely take an unequivocal stand when it comes to the immediate future. Yesterday was about as close as I get , apart from those rare instances when I think I see the writing on the wall before the market has fully appreciated what's going on (The run up to the taper tantrum in May/June 2013 was the last obvious instance of that). Why was I feeling defensive? Check out yesterday's recap for the details, but between the 5-day rally running the risk of getting tired, the technical resistance at .63%, the artificial extension of the rally thanks to huge stock selling, and the upcoming 3-day weekend, it made significantly more sense to err on the side of caution…(read more)

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Source: Mortgage News Daily