Interesting Market Day Likely

We expect a very interesting day of interest rate movements as well as potential fireworks in the equity markets today.

Of course the clowns in Washington DC are getting little accomplished and we suspect will kick the can down the road a week and not pass any real funding today.  This should not affect stock trading, but it could–one never knows.

Of more interest to us is the 10 year treasury is pegged at around 2.62% which supposedly is just 1 basis point from some sort of technical level (at 2.63%).  We sure don’t follow silly technical stuff, but if traders pay attention I guess we have to watch the same measures.

Our concern is that the 10 year treasury hits 2.64% and is followed up by some sort of panic move into the 2.70’s or some such number which sets off a panic of sorts with some investors.  What I am saying is there could be some pain.

Yesterday the average $25/share preferred lost around 3 cents while REITs set new lows.