Wednesday, August 20, 2008
Rate Watch: Cautiously Floating
Bonds have continued to battle the 50 day moving average overhead for the past 3 trading sessions and today is the same news. This tough layer of resistance has only been cracked 2 times in the past 3 months, but with the stock market stumbling quite dramatically at mid day, there has been a flight to the "safe haven" of bonds and values have improved just above the 50 day moving average. Be prepared for a change of direction, however, as this volatile market can turn on a dime.