After spending most of the week trading over par, the "rate sheet influential" FN 4.5 MBS coupon has fallen back below 100-00.
Plain and Simple: Booooooooooooooooo stocks
Hmmm...you notice that big yellow arrow I drew? I wonder if that price point has any significance. Lets check...
HAHAHA..well i'll be a monkey's uncle. Looky there...thats where we opened the week!
After all the bouncing back and forth we've put up with...wouldnt it be funny if we closed right where we opened the week? Making NO PROGRESS!!!!!
Not HAHA funny, more like "listening to voices in your head" funny. Sort of like this: THE MORTGAGE INDUSTRY AFTER THIS SUMMER
Anyway...earlier I posted a TY chart (10 yr TSY futures contract) and cited that prices had fallen to the 62% retracement of July price highs. Well...prices fell further, but the market found support at 117-06. Hmm what did I miss? Turns out I was using the exponential moving average, not the simple moving average. What a dummy I am...so I changed to simple moving average and WHOA...there it is...SUPPORT at the 200 hour SIMPLE moving average...
Like many other market participants...I AM DONE FOR THE DAY :-D
Mr.MG will be communicating pertinent market movements for the remainder of the day. Enjoy your weekend and be sure to avoid the urge to chop down a bathroom door with an axe....
MBS Market Alerts
