11/16 Market Close

Wow, what a ride we had today.  Things started off looking very promising for rates this morning as inflation measures with the PPI came in lower than expected.  With inflation appearing to be tame investors took to bonds and rates opened up better than close yesterday.  Not so fast my friend.  Around 10:30am the sellers came out in full force and what started off as a great day quickly deteriorated into rates getting worse.  Another, not so fast my friend, as bonds tanked, late in the afternoon investors jumped back in seeking some bargains and bonds rallied big to see rates improve not once but twice.  So what was the catalyst behind this?  Inflation fears seemed to ease.  The PPI was an indicator that inflation is in check.  However, tomorrow we will see the CPI (consumer price index) numbers which measures what people are paying for commodities.  Another good reading here and rates are poised for a rally.  CPI comes in hotter than expected and we may just find the ceiling on how high rates will go in the near future.  One thing is for sure, this has been a wild ride.  The DOW finished the day down 178 pts to close at 11,023.  Oil had a tough day as well due to the strengthening of the dollar, and was down $2.53 a barrel to close at $82.34.  Gold took a big hit today down $32 an ounce, also due to a stronger dollar.  Tomorrow as mentioned we will be watching CPI, Housing Starts and Building Permits.  Have a great evening!!