Market Update

Bond prices are catching a modest bid this morning in reaction to a comment made by Fed Chairman Ben Bernanke. In a speech last night, Bernanke stated that a recovery from the recent credit crunch could take longer to resolve than expected. Remember, bad economic news is good news for Bonds. Yesterday, Bonds made a nice bounce off of the 50-day Moving Average and, at the moment, have risen back above the key 200-day Moving Average. Should Stocks continue to be under selling pressure, Mortgage Bonds could improve further. Since Bonds remain above multiple layers of support, I will retain a floating stance for now.