Good Monday AM,

Bonds are strong this morning (as are stocks) and once again are testing the top of the range. As is always the case, the odds are better that we will hit resistance and start to sell off towards the support line. To be confident that we have broken through resistance and are into another trading channel, we need to close not only today where we are but also close tomorrow a bit better than today’s close. Then we can start talking about a move toward lower rates. I would mention that Friday is jobs day. The market is already looking for a number close to 1mm new jobs added. I would think if we get something like this, bonds would have to sell off. We can review more as the week progresses but if you are floating, expect more volatility as the week progresses.

Please remain safe and healthy, make today great!