MBS Day Ahead: Traders Are Definitely Settling-In And Waiting For Data to Put on Show

Posted To: MBS Commentary

In their best Caddyshack voice, traders are collectively saying "well? We're waiting" to both stocks and bonds at the moment as each side of the market has clammed up after the first and only directional move of 2019. January 18th (head fake headlines on a potential trade deal) marked the extent of stocks' willingness to rally and bonds' willingness to weaken. Both have been in a consolidative pattern since then. Here's how the consolidation looks in bonds: Stocks are consolidating in a similar way, except their central point of gravity also happens to be a major pivot point. Actually, we should call it a pivot "zone" considering there has been a fair amount of overrun in both directions, despite the approximate location of each big bounce being centered...(read more)

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