Posted To: MBS Commentary

Fundamentals and technicals represent the two main schools of thought when it comes to market analysis. Fundamental analysis focuses on all of things outside of the market that could/should have a bearing on the market (i.e. economic data, covid numbers, Fed policy, Fiscal policy). Technical analysis relies on market movement itself and attempts to draw conclusions about the present and future without considering fundamentals. Sometimes fundamentals and technicals are well-aligned . That alignment can be seen in the very shortest of terms such as strong economic data hitting on a day where bonds were already 'overbought' and at risk of a bounce. Or it can be seen in the bigger picture such as early June when covid numbers began ramping up just as bonds were decisively 'oversold…(read more)

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Source: Mortgage News Daily