Stock Market stages a good rally yesterday and the S and P 500 broke through resistance at the 875 level to turn back into the positive territory for 2009. Stocks did not weigh on Mortgage bonds which have enjoyed a nice rise after bouncing off the triple layer of support yesterday.

Stocks are sluggish at the open on new that the government stress tests on banks have revealed that ten large banks may need to raise capital to endure the ongoing recession. Mortgage Bonds respond and move higher on the new.

Big Ben Bernanke will be testifying in front of the Joint Economic Committe speaking on the state of the economy. Everyone will be listening closely and the markets may react to his outlook.

If clients are looking to lock in their interest rates today we recommend a Float postion to see if prices can once again retest resistance at the top of the trading randge.