Friday, November 7, 2008

Rate Watch 11/7/08: Floating

The Labor Department Jobs report was far worse than expected and unemployment is at the highest level since 1994. Stocks are coming off their worst back to back days since the 1987 Stock Market Crash.

The dismal jobs report, the higher unemplyment report and the poor stock market are all helping Bonds this morning.

Even though there is a small improvement in Bond prices this morning, I am recommending floating as the weakness in the Equity market starts to sink in as the day goes on.

Bond Prices are battling a strong ceiling of resistance, but the future of Bonds could be bullish as the prices break through the ceiling above.

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