Monday 7/7/08 ... Return of the Water-Wings

I know it's been almost too long since we've donned the proverbial water wings, but the weather is sunny enough, the water is warm enough, and certainly our arms are tired from trying to stay afloat in recent days, so why not strap on the wings and take a nice float?

Lenders haven't coughed up all the price improvements they've seen on the secondary yet, so let's wait for them to play their hand.  At this point, if we can close in this relative range, even a bad open tomorrow won't take us far below (if at all) from the levels where most lenders priced and repriced today.  In other words, we have nearly .25 YSP that hasn't made it to us yet.  So let's wait for it.

Technical indicators are also pointing to tomorrow being a rebound day.  Of course, let's reassess where we're at at lock cutoff and then again in the morning.