Daily Commentary by Larry Baer: Second
verse - same as the first. The following
is essentially a repeat from yesterday's commentary.
As I mentioned in this week's edition of
"ViewPoint" - the coming five business days will be a real
"snoozer" with respect to potentially market moving economic
reports. Expectations for an uptick in
both August Housing Starts (due on Wednesday) and August Existing Home Sales
(due on Thursday) are all ready well priced into the mortgage market.
This week's scantily populated economic
calendar will likely leave mortgage investors with little alternative but to
look to trading action in the stock markets for directional cues as they go
about the business of setting mortgage interest rate levels.
If the domestic economic data remains as tame
as expected -- stock prices will likely begin to slip lower as we plod along
until the election.
My models are indicating the Dow and the
NASDAQ are very vulnerable to a downward price correction - most likely by the
last two days of the week. If this
assessment proves accurate, capital flowing from the equity markets back into
the relative safe-haven of Treasury debt obligations and mortgage-backed
securities will tend to be supportive of the near-term prospects for steady to
perhaps fractionally lower mortgage interest rates.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
