Posted To: MBS Commentary
After Thursday and Friday of last week mimicked the previous Thursday and Friday, it was fair to wonder if we’d get another ugly Monday today. While we did lose ground in terms of trading levels, the severity of the weakness reveals several clues about trader sentiment. Those clues point to an ongoing consolidation of the late-April / early-May sell-off. Let’s talk quickly about this term “consolidation.” Quite simply, it can be thought of as a period of time where trading levels are moving sideways or counter to the previous trend. The days inside the consolidation can be volatile and varied. The key feature is that it is neither extending the previous trend nor beginning a bounce back in the other direction. So far, we’re still in the midst of a consolidation . We clearly…(read more)
Via:: MBS RECAP: Another Bad Monday for Bonds; Game Over?
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