Phil Grossfield's Blog

My Schedule…and A Little Extra:   Happy 80^th Birthday Dad!!!!!!

My Market Watch:  Pricing is down with minor reporting and European news.  However, there is a more alarming thing to consider…according to the Mortgage Market Guide, the bond has fallen through a floor of support.  Let me explain.  Traders look for signals in the marketplace to anticipate what pricing will do in the future.  Accordingly, they trade trying to capitalize on the information.  That certainly makes sense, right?  Well, one of the indicators traders look at are Moving Averages of bond prices.  Based on trends in the past and present, they can predict what will happen if bonds fall below “floors” or go above “ceilings.”  Why is this significant right now?  Because the 30-year bond is trading around and below a floor as I type…if it goes further south, then traders might not start buying the bond again until it hits a lower floor.  If that happens, you’ll see pricing get worse.  This is a bit technical but it is logical and for those of you that are interested, I’m happy to discuss more…just reach out to me….  Disclaimer

My Schedule: I was in a conference call with Operations all morning…now available throughout the day until 4:15p and then out with kids….