Uncle Ben's Tasty Bowl Of Rice...

Whatever Bernanke put in the mix today, the market's are liking it.  We've see so much money move to the sidelines in recent days and to a lesser extent, recent weeks.  Currently, the market is showing willingness to put some of that money back into the market with both stocks and bonds improved.  At one point, stocks were up over 100 pts and STILL bonds were improved. 

 This is a sign that the upset stomach on the part of investors over inflation, etc... has been somewhat eased by this policy statement.  It wasn't a bold enough flavor to preclude the more moderate palates, yet it was spicy enough to entice the risk-takers.  As Goldi-Locks would say: "just right."  The price improvements since the announcement have been uncharacteristically smoothly directional, meaning there hasn't been a lot of "back and forth" as prices work towards their settling points.

I understand you probably haven't seen many price improvements yet, but never fear, they are on the way, and should be fairly substantial.  If lenders are unwilling to price in the gains tonight, you'll have to wait until tomorrow to see them.  The only mitigating factor there could be unfriendly data tomorrow.  The buzz on the street though, is that tomorrow, at the very least should not be a bad day for MBS.  It would have to open pretty negatively in order to get rates back to the conservatively hedged locations where lenders began today.

So keep fighting lads!  The dragon falters! And though we may have to join in battle throughout the night, we can win the day if we remain vigilant.  In other words, keep cautiously floating.  As of right now, the numbers and indicators are certainly there to justify it.