The market is in a waiting mode right now.
Greenspan's focus on inflation definitely pressured the market. It was definitely a speech on higher prices and about core inflation turning the corner.
There's a re-evaluation of the economic landscape that makes people willing to sell, but there's not a lot of people ready to buy right now.
With the post office story and then the talk about the Senate office buildings being evacuated, sure, that got the market re-bid again.
The home sales data were on the firm side and yet we didn't see any selling when they came out. We had come close to the low (prices) of Friday's session and couldn't go lower, so that caused a bit of short-covering.
After the stronger report on manufacturing from the New York Fed yesterday, it definitely reinforces the fact that the economy is doing better.
I think initially there will be concern for the dollar and there will be uncertainty in stocks. It will not be so bad for bonds . . . Bonds have sold off so much.
The risk at this point is that we get a weak payrolls number. If we get a negative number, that might inspire some pretty violent short-covering.
That's been an area where people perceive value.
Today the flows have changed. We did see some selling this morning of the back end of the Treasury market and perhaps that's just a little disappointment that the stock market didn't go further below 10,000.
