Alan's Blog

Bonds have bounced up and down this morning, but are currently making a recovery.

In other news, the four-week average of new unemployment claims now sits at its highest level since the recession of 2001. However, the report may be somewhat skewed by a new federal program.

Stocks started out the morning lower, but started to improve after Consumer Confidence for August came in well above expectations.

Also this morning, the US Dollar rallied against the Euro after business and consumer confidence in Germany fell more than expected--indicating that Europe's largest economy may be slipping into a recession. The recent rise of the US Dollar may be lessening the threat of inflation and, therefore, helping the Fed hold off on a Fed Rate Hike.

Mortgage Bonds were finally able to poke above the tough ceiling of resistance this morning that they have been battling for three days.

In other news, the national average for a gallon of gasoline fell last week to $3.77. But it may not be for long, as oil prices have already climbed back up above $116 a barrel.