Posted To: MBS Commentary
Back on January 18th, stocks made it as high as they’ve been able to make it since early December. From there, they ebbed a bit and traded sideways for several more days before reapproaching those highs last Friday. Breaking above those highs would have been technically significant (i.e. it may have served as a cue for more positive momentum). With the temporary shutdown plan announced with only hours left in the day, that made this week highly uncertain . But rather than stampede up and over the overhead ceiling, stocks moved steadily lower overnight and then more sharply lower in the morning hours. Corporate earnings played a part as did oil price weakness and another downbeat speech from ECB President Mario Draghi. Bond markets didn’t object, and soon found themselves back in positive…(read more)
Via:: MBS RECAP: Stock Losses Reinforce Bond Market Opportunities
