It's important to learn to recognize the signs...
You might feel tired, cranky, sarcastic, dismissive, or just plain sad. In some cases, you could develop a bit of nervous laughter, especially while asking yourself rhetorical questions, "Ha! Why would I expect anything but the Range?! Ha Ha! Why even pay attention to the market? Ha ha! It's just going to keep bouncing in the range anyway!"
Yes folks... We're talking about range exhaustion and it's a reality we're all coping with in different ways. With NFP coming up on Friday, and with a decidedly converging tone entering the charts recently (see first chart below), we could HOPE that NFP this Friday will cast a deciding vote as to which end of the range gives way first. Take a look at the consolidating pattern that saw a support bounce earlier today:
Currently, 10yr yields are having a hard time getting past resistance at 3.42. As far as MBS are concerned, their battle with resistance is at 102-00, having traded within 3 ticks of that level for the past 2 hours without making it any higher. At least the stable, sideways market reduces or even eliminates any risk of reprices for the worse from this morning's more rapid losses. Lots of "watching and waiting" at the moment...
No question the watching and waiting gets tedious, but there are things you can do to make market-watching more bearable, even fun.
MBS Market Alerts
