Florida Mortgage Market – Forecast for the Week

by Florida's #1 Mortgage Planner on March 3, 2008

This week will start off with a bang and end with a major explosion, so hold on for another fun ride.  I will give you the breakdown of the week’s regularly scheduled programming in a bit, but let’s look at some technical stuff. 

Mortgage backed securities have pushed higher, piercing their 100-day moving average and even ending the week above their 25-day and 50-day moving averages, a tough feat to say the least.  While the last two have not solidified their ground as new support, the stochastics and chart formation show a strong bet towards continued price increases. 

With bonds dropping down and testing their 200-day moving average 3 times in the last two weeks (actually 8 trading days), followed by their move higher, a “W” pattern has formed and that is usually bullish for that security.  No guarantees, but it looks good and with the data this week favoring the recessionary tug, this may be another good week for bonds.

We will start off the week with the ISM Index at 10:00, then have some moderate reports throughout the week, ending the week with the big enchilada, the Jobs Jamboree.  Bonds are down for the start, but we are going to start off in a cautiously floating stance. 

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