Good Wednesday AM (still the best day of the week),

In spite of the huge fear in equity markets stemming from Russia, bonds remain firmly in their trading range. Both the ten-year and the Mortgage Backed Securities touched the top of resistance on Friday and have since slid down to the bottom of the range. This is typically a position that we float from because the probability of a bounce is far greater than the probability that price will break below support. Just remember that a close below the current channel could trigger a considerable amount of selling. Also, if you do float, keep in mind that Friday we have news that can have a strong negative impact to the markets. I am talking about the Personal Consumption Expense numbers. This is an inflation gauge followed by the Fed more closely than CPI.

Please remain safe and healthy.