Good Morning on the sparkling Monday AM,

The 10-yr is relatively flat this morning, mortgage bonds are off about 20bps, and the DOW is down three hundred points. The reason mortgage bonds are off today is likely that the Fed is buying less bonds and may continue to taper. I am not concerned because they will absolutely do what they must to keep rates down and the economy from seizing entirely. Equities, well that’s another question. I have shared that I think the push up in the Dow/S&P is unreasonable and that I expect equities to drop harder. There was a report in the WSJ that shared short sellers have revived their bets against the stock market in recent weeks, taking their most aggressive positions in years. Bets against the SPDR S&P 500. Trust, the biggest exchange-traded fund tracking the broad index, rose to $68.1 billion last week, the highest level in data going back to January 2016.

I came across the interesting chart below. If you are wondering about unemployment this picture speaks volumes on which states have been hit hardest firs.. I don’t see this trend changing for a bit.

Please stay safe and healthy and make today great,

Brad