Florida Mortgage Market – Morning Update

by Florida's #1 Mortgage Planner on March 12, 2008

Locking Stance:  CAUTIOUSLY FLOATING     Mortgage Bonds:  +19bp

Mortgage bonds are continuing their move higher this morning.  With stocks set to a lower open to take a breather from their race higher yesterday, there is a good chance bonds will move higher, maybe even test their 25-day MA. 

There are no “big” economic events today in terms of data to be released, so bonds will likely take direction from stocks and a bit from technical factors today.  That is good news for the short term.

The long-term picture does not bode well for bonds right now.  They were unable to sustain a rally from two weeks ago and that sets them up for a down trend.  The pattern that formed resembles a head and shoulders pattern stock pickers use to ID a bearish move.  Stochastics are about in the middle ground right now, but it still looks positive at the moment.

Short term trend favors floating at the moment, so that is where our stance is.  The longer term picture is not “pretty” right now, so we will likely change our stance in the future, maybe even later today, so check back regularly or subscribe to the feed.

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