Good Wednesday A.M. on this best day of the week,
Bonds doing better this a.m. in both some follow through buying from yesterday afternoon and the poor ADP payroll report. ADP expected almost 1mm new jobs and reported less than half. Tomorrow is unemployment claims data and then Friday is the biggest report of the month, the BLS jobs report. Markets currently expecting 1.55mm new jobs and an unemployment rate of 9.9%. I am not holding my breath on either of those numbers right now as both seem optimistic. Mortgage bonds are up a good bit and the 10-yr Treasury is at .65. I would think about locking in here to not give up the gains we have picked up over the last week.
The one thing to mention as shared from Dan Rawitch is “There are some interesting and scary things happening in the stock market. Mainly, the VIX, which is the markets fear indicator, continues to rise alongside of the overall stock market. The VIX is designed to go up when the markets go down and the opposite is happening. This suggests to me that some very big money is beginning to hedge their portfolios. The VIX is one hedge and bonds are the other, so bonds may benefit from this uncharacteristic market behavior.” The challenge is always timing. We know stocks are going to go on sale, the hard part is to know when.
Please remain safe and healthy, make today great!