Bonds are facing some selling pressure this morning, as Stocks are attempting to stabilize and move higher after three days of hard losses. The modest rally in Stocks is a bit puzzling when you consider the continuing barrage of bad news, including lower future earnings guidance from Wal-Mart and Intel as well as the worst initial unemployment claims data since 2001.
In other news, a $10 Billon auction in 30-year Treasury Bonds will hit the market at 1 pm Eastern Time. If the auction is not well embraced, Bonds could face additional selling pressure.
Currently, both Stocks and Bonds continue to trade near important support levels. I recommend floating for now, but I will let you know if Bonds fall below support and a change in course is needed...more
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