We are knocking on the door of one of the best rally's of the year!

Well Hello, Hello, look who's the popular kid on the block now.

Last week MBS where the outcast in the neighborhood. After a new pool, hut tub, and a 52 inch plasma TV, they are lined up around the block!!

Sellers can not keep them on the shelves today as the original "cool kid," Big Ben Bernanke has posted party flyers on all the telephone pholes in the neighborhoods frequented by those with deep pockets.

I had not expected the ball to drop quite so rapidly, and it may still have a few bounces to do, so don't let your guard down. Today is a good day. T-Bills have not even gotten back up off the ground and the result is massive tightening.

As I mentioned earlier, stocks improving in performance with MBS--is almost a predisposition in recent hours and days. The mid to late day profit taking that is always such a risk on run-ups like this has been all but pushed to the back burner. But after the market close, don't forget the ensuing 2 hours that have seen uncommonly high liquidity and activity of late.

Although we have had several up days in a row in the past, and with each passing day, the subsequent becomes less and less likely.

Overall, I am lock biased, and quite conservative. History informs us that cashing in on a night like tonight is not a bad move, but for you risk-addicts, the STABILITY of price gains and of the curve in general is admirable to say the least.

Make sure to check my blog thru the week, it is packed with info.

Cheers,

Ian R Bennett

Mortgage Banker