Up and Down Trading... Tomorrow Will Be Telling...

It was a wild ride today... with traders favoring our market over treasuries today, we were fortunate. With that said the 10 year treasury yield did creep above 3.000%, which is not good for our markets.

Which brings us to tomorrow. Will investors see this as a bargain opportunity and buy buy buy, sending the treasury yield back down thereby fueling a buying frenzy in the mortgage backed securities market? Perhaps, investors will see the rising yield, reevaluate and sell off slightly, as others follow the same formula, the seemingly minor sell off could gain steam turning into something a little more cataclysmic leading to substantial losses.

Both of these possibilities are well within the realm of the real. All things considered, during uncertain times it can be very helpful to step back and look at the larger picture. Below is the one year graph for this very purpose.


Difficult call to make. I will leave it to you.