Friday, October 10, 2008

Rate Watch 10/10/08: Lock

"You buy when there's blood in the streets." Baron Rothschild. You should buy stocks when there is maximum pessimism, and we may be approaching, or may have reached that point already. And as for the day, stocks opened up 700 points lower than the close yesterday, recovered completely and at this writing, are down 328 points.

And what about Bonds? Well, they are not faring any better, either. They opened off 59 basis points, and are now trading off 91 bps. Bonds are down heavily and we are in for another mid day rate reprice for the worse. The market closes at Noon MST and will be closed Monday for Columbus Day. My next Rate Watch report will be on Tuesday, 10/14/08.

For the short term, I am recommending Locking. Because there is a floor of support in the Bond Charts at the 100 day moving average (we have already fallen below the 50 and 200 day moving average), we may be seeing the worst Bond Prices, but I am recommending locking just in case we continue to fall.

P.S. In a seperate BLOG Post, I am writing more details on the Stock Market and the Brutal Bear Market we are in. VERY interesting research and findings this morning that I look forward to sharing with you!

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