This Week; it is still all about what the stock market does on a daily basis, it isn't rocket science to know that these days if stock indexes increase the bond and mortgage markets get tagged----and the opposite also applies. There are a number of key economic releases this week but the big one hits Friday with the Sept employment report, present estimates that will likely change through the week is for non-farm jobs to increase measly 60K jobs and non-farm private jobs up just 83K, the unemployment rate is expected unchanged. If those estimates prove true, the job growth would suggest the economy is back-sliding toward another recession.
Technically the bond and mortgage markets continue to hold bullish outlooks. Last week both markets tested their key supports twice and both times held levels that if they were penetrated would have changed the technical structure. The financial markets (stocks and bonds) will continue their choppy swings his week. Greece is still in play with many believing eventually it will default but most likely the country will get its next dose of money on the 13th of this month to extend the default for a few more months.
TBWS
