Stocks got hit hard last week as a follow through to sell off. They may see a bounce here due to technical and machine buying & selling. It is more likely that they fall to than rallying in the coming days. Should this happen, we will likely see a good bounce in bonds (remember, when bonds go UP, rates come DOWN), however even with stock in a massive sell off, bonds are selling off too (meaning rates are heading higher today) thanks to a somewhat favorable non-farm payroll report. I see noise in those numbers and I am concerned that 1/3 of the new jobs created were from Uncle Sam hiring people-Our tax revenue is down, our debt level is up to historic levels, which also drags down income, hurts the value of the dollar, yet we added 400k new government jobs?
There will be some extreme volatility in the markets because volume will be light and the big traders have checked out for the long weekend, leaving the little guys to struggle with their emotions.
SOURCE & AUTHOR |
Keith Murphy Branch Manager – Essex Mortgage NMLS #330827